1. WHAT IS THE ADVANTAGE OF ENGAGING A HOTEL OPERATOR TO MANAGE THE OPERATIONS OF THE CONDOMINIUM HOTEL?
THIS ARRANGEMENT GIVES THE CONDOMINIUM HOTEL UNIT OWNER A “WORRY FREE” INVESTMENT
BECAUSE THE HOTEL OPERATOR MANAGES:
- The leasing of the hotel rooms/units
- The maintenance, refurbishment and improvement of the units
- The operating expenses, real property taxes, common are charges, utilities, insurance and other related expenses
- An independent auditor, belonging to the Top 5 auditing companies accredited with the Philippine Securities and Exchange Commission, will be hired to audit, examine or review the hotel operator’s annual operating statement.
2. WILL THE UNIT OWNER STILL EARN IF HIS UNIT IS NOT RENTED?
YES, A CONDOMINIUM HOTEL UNIT OWNER WILL BE ENTITLED TO A SHARE IN NET ROOM REVENUE WHETHER HIS UNIT WAS ACTUALLY RENTED OR NOT. UNDER OUR SYSTEM, THE UNIT OWNER SHALL HAVE A PERCENTAGE SHARE IN THE SHARE OF THE POOLED UNITS IN NET ROOM RENTAL REVENUE. REMITTANCE OF THE UNIT OWNER’S SHARE SHALL BE DONE BY THE HOTEL OPERATOR ON AN ANNUAL BASIS THRU A CHECK PAYABLE TO THE UNIT OWNER.
3. CAN THE UNIT OWNER LIVE IN THE PROPERTY FULL TIME?
NO. THE UNIT OWNER MAY OCCUPY FOR PERSONAL USE, A HOTEL ROOM FOR 30 ROOM NIGHTS PER OPERATING YEAR. ROOM MAY NOT BE THE EXACT UNIT PURCHASED.
4. WHEN DOES THE UNIT OWNER GET HIS OR HER 30 FREE ROOM NIGHTS PRIVILEGE?
THE 30 FREE ROOM NIGHTS PRIVILEGE CAN BE AVAILED OF BY THE UNIT OWNER THROUGHOUT THE OPERATING YEAR. HE JUST CONTACTS THE HOTEL FOR ADVANCE BOOKING. IF A UNIT IS TURNED OVER AND INCLUDED IN THE POOLED UNITS AFTER THE START OF AN OPERATING YEAR, THE UNIT OWNER SHALL BE ENTITLED ONLY TO A PRO-RATA NUMBER OF ROOM NIGHTS CORRESPONDING TO THE REMAINING PERIOD OF THE OPERATING YEAR.
THE AVAILMENT OF THE FREE ROOM NIGHTS PRIVILEGE SHALL BE MADE UNDER THE FOLLOWING CONDITIONS:
- THE 30 FREE ROOM NIGHTS SHALL BE NONCUMULATIVE;
- THE UNIT OWNER MAY BE ALLOWED TO AVAIL UP TO TEN (10) FREE ROOM NIGHTS ONLY PER VISIT;
- ALL BOOKINGS SHALL BE SUBJECT TO ROOM AVAILABILITY EXCEPT DURING PEAK PERIODS AND/OR CLOSE-OUT DAYS.
TRADITIONALLY, NEW YEAR’S EVE, CHINESE NEW YEAR AND CONVENTION PERIODS ARE PEAK PERIODS. THIS POLICY IS CREATED SO THAT MANY HOTEL GUESTS AS POSSIBLE CAN BE ACCOMMODATED DURING THE PEAK PERIODS OF HOTEL OPERATIONS, IN ORDER TO MAXIMIZE RETURNS FOR THE INVESTORS/UNIT OWNERS.
5. CAN A UNIT OWNER USE HIS 30-DAY FREE STAY FOR MORE THAN ONE UNIT AT THE SAME DURATION?
YES, IT WILL BE ALLOWED SUBJECT TO ROOM AVAILABILITY. IF THERE IS A PROJECTED OR ACTUAL OVER SUPPLY OF ROOMS ON THE DATES THE UNIT OWNER WISHES TO BOOK, IT WOULD BE FINE AND PROVIDED IT DOES NOT EXCEED THE MAXIMUM STAY OF 10 FREE ROOM NIGHTS PER VISIT.
6. IF THE CLIENT USES HIS 30 FREE ROOM NIGHTS, WILL THE UNIT/ROOM THAT HE WILL USE BE OF THE SAME SIZE AS HIS UNIT?
THE FREE ROOM NIGHT OF A UNIT OWNER WILL CORRESPOND TO THE TYPE OF ROOM HE HAS PURCHASED, SUBJECT TO AVAILABILITY. IF HIS ROOM CATEGORY IS NOT AVAILABLE, HE MAY CHOOSE TO RESCHEDULE HIS USE OF THE ROOM. ANOTHER OPTION WILL BE TO EITHER BOOK A HIGHER ROOM CATEGORY (WITH EXTRA CHARGE) OR A LOWER ROOM CATEGORY.
7. IF THE CLIENT OWNS, LET’S SAY 5 UNITS, DOES IT MEAN THAT HE HAS 150 FREE NIGHTS? DOES IT ALSO MEAN THAT HE CAN STAY FOR 50 NIGHTS PER VISIT?
THERE IS A 10-DAY MAXIMUM CAP PER VISIT IN AVAILING ROOM NIGHTS. IN THIS CASE, THE UNIT OWNER CAN USE THE ENTITLEMENT PER UNIT FOR 10 DAYS EACH TO MAKE A TOTAL OF 50.
8. CAN THE UNIT OWNER TRANSFER THE RIGHTS OF THE 30-DAY STAY TO ANOTHER PARTY?
YES, THE UNIT OWNER MAY DESIGNATE ANY OTHER PERSON AS HIS “GUEST” TO AVAIL OF THE 30 FREE ROOM NIGHTS PRIVILEGE. THE UNIT OWNER SIMPLY HAS TO FILL UP AN ENDORSEMENT FORM, WHICH WILL BE SUBJECT TO ROOM AVAILABILITY, BOOKING CONFIRMATION, AND ALL OTHER AVAILMENT CONDITIONS MENTIONED EARLIER.
9. CAN THE UNIT OWNER STILL RESERVE A ROOM AFTER HE IS ABLE TO USE UP TO THE 30 FREE ROOM NIGHTS PRIVILEGE?
YES, HE MAY STILL BOOK A ROOM BEYOND THE 30 FREE ROOM NIGHTS PRIVILEGE, THIS TIME AS A REGULAR PAYING HOTEL GUEST AND AFTER THE USUAL ADVANCE BOOKING.
10. CAN THE UNIT OWNER USE THE AMENITIES OF THE HOTEL EVEN AFTER THE 30 FREE ROOM NIGHTS?
JUST LIKE ANY OTHER HOTEL, THE AMENITIES ARE FOR HOTEL GUESTS ONLY.
11. DOES THE UNIT OWNER HAVE THE OPTION OF SELLING HIS HOTEL UNIT?
YES, HOWEVER, THE UNIT SHALL BE OFFERED FIRST TO THE HOTEL OPERATOR. SHOULD THE HOTEL OPERATOR WAIVE ITS RIGHT OF FIRST REFUSAL OVER THE UNIT, IT CAN BE OFFERED TO THE OPEN MARKET AT THE SAME TERMS AND CONDITIONS OFFERED TO THE HOTEL OPERATOR. THE TRANSFEREE WILL STILL BE BOUND TO HONOR AND RESPECT THE LEASE AGREEMENT SIGNED BY THE PREVIOUS UNIT OWNER.
12. WHAT IS THE TIME FRAME FOR THE RIGHT OF FIRST REFUSAL? HOW LONG DOES THE UNIT OWNER HAVE TO WAIT FOR REPLY OR DECISION?
THE UNIT OWNER SHALL SEND TO THE HOTEL OPERATOR A WRITTEN NOTICE OF ITS INTENTION TO SELL THE UNIT. THIS NOTICE SHALL INCLUDE THE PRICE AND ALL THE OTHER TERMS AND CONDITIONS AT WHICH THE UNIT IS BEING OFFERED FOR SALE BY THE OWNER. WITHIN 30 DAYS FROM RECEIPT OF THE SAID WRITTEN NOTICE, THE HOTEL OPERATOR SHALL INFORM THE UNIT OWNER IN WRITING WHETHER OR NOT IT INTENDS TO PURCHASE OR ACQUIRE THE UNIT UPON THE TERMS AND CONDITIONS PROVIDED IN THE UNIT OWNER’S WRITTEN NOTICE.
13. WILL THE PROPERTY BE COVERED BY INSURANCE?
AS MENTIONED EARLIER, INSURANCE IS PART OF THE DEDUCTIONS FROM THE GROSS REVENUE. COMMENCING ON THE OPENING OF THE HOTEL AND FOR THE DURATION OF THE EFFECTIVITY OF THE LEASE AGREEMENT, THE HOTEL OPERATOR SHALL PROCURE AND MAINTAIN ON BEHALF OF THE OWNERS A PROPERTY INSURANCE ON THE COMMON AREAS OF THE PROJECT AND THE POOLED UNITS AS IS CUSTOMARILY MAINTAINED FOR COMPARABLE HOTELS. THE HOTEL OPERATOR IS ALSO DEEMED AUTHORIZED TO PROCURE AND MAINTAIN, AT ITS DISCRETION OTHER INSURANCES AS IS CUSTOMARILY MAINTAINED FOR COMPARABLE HOTELS TO COVER STANDARD OPERATIONAL RISKS.
