The nature of your investment
Choosing the right property investment can be a difficult decision, either as a new investor or an experienced investor looking to expand your portfolio. The Radisson Safari Hotel Hoedspruit is situated in one of South Africa’s most popular and fast growing safari destinations, ensuring high occupancies that result in a generous return on investment.
Property in general over the past years has developed into a preferred investment route, in comparison to poor returns from traditional savings accounts, and has generated overall better returns than stock and shares over the past 20 years.
Hotel room investment is considered a property investment no other than a buy-to-let, however it is a truly hands-off, and hassle free investment as the hotel management company manages everything on your behalf of as an owner, safeguarding your investment.
Popularity of hotel room investment has rapidly increased; investors are turning towards this route more and more, due to its completely passive nature, guaranteed high returns and secure buy back options.
The management company of the hotel pays out the returns on investment on an annual basis. All investments are in South African Rand and all returns will be paid out in South African Rand.
Return on investment
A 7 or 12 year investment plan is offered with returns up to more than 12% average per year. After year 12 and in the case that the owner chooses not to sell the unit, the return on investment will be determined based upon profits previously realised by the hotel management company. The owner will receive a renewal proposal for consideration.
Exit strategy
As with any investment the investor should be familiar with the options for exit. Through this unique structure there are a number of exit strategies available to you.
- At the end of year 7 a guarenteed buy back of your unit at 105% of the purchase price is offered. Should you choose this option, written notification is required one year in advance. The unit will be bought back within a maximum of 12 months.
- At the end of year 12 a guarenteed buy back of your unit at 110% of the purchase price is offered. Should you choose this option, written notification is required one year in advance. The unit will be bought back within a maximum of 12 months.
- At any time you have the option to sell your unit on the open market.
Purchase Process
Lowland Invest will assist you throughout the entire purchase process. All contracts can be signed anywhere in the world and emailed to our conveyancing attorneys. All costs of transfer of the unit into your name are included in the purchase price.
A 25% deposit will be payable in order to secure your investment. Upon commencement of construction the remainder is payable. The guaranteed return on investment commences on the date that full payment is received.
Construction of the hotel will start as soon as 40 units have been sold. In the event that construction of the hotel does not commence before 1 January 2020 the received deposit of 25% we will be refunded to you with interest.
Hotel Management
The hotel management will be undertaken by the Radisson Hotel Group, a globally operating hotel brand currently managing over 1400 hotels worldwide. This will ensure the creation of a high end product, full customer service and an unforgettable ambiance and experience.
The hotel management company will service both business and leisure guests in style. Guest comfort and fulfillment will be at the heart of the ongoing hotel operations. Serviced to the highest standard the Radisson Safari Hotel Hoedspruit offers purchasers and guests full confidence in the management and operation of this luxury hotel.
For the investor the hotel management company is committed to high occupancy levels year-on-year, ensuring annual payment of the return on investment. The hotel management company will also be committed to maintaining the rooms, public areas and services to an exceptionally high standard.
