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Frankfurt Hotel Suites
Frankfurt, Germany
Hotel Rooms
Buy-to-let Investment
Invest in centrally located hotel rooms in Frankfurt
Prices from €93,000* (£72,885 approx.)*
Proven Investment Model Hotel occupation rate of over 80% Annual returns of 12% expected Fully managed, hassle free investment SIPP approved Hotel room ownership is a proven investment model which has been highly successful and lucrative in the USA, Canada and the Middle East. We are offering the same investment model within the security of one of the most dynamic and best performing economic regions in Europe.
THE CONCEPT
Own your very own Hotel Room in Frankfurt City Centre
1. Buy a hotel room
On a 99 year exclusive license Fully managed rooms Hassle free investment
Invest in this new, exciting and potentially highly profitable industry that is tipped to grow and grow, at a fraction of the cost of other hotel ownership schemes.
HOW IT WORKS
Literally make money while others sleep
Private individuals as well as investment companies can profit from purchasing a hotel room. The rooms are owned on a 99 year exclusive license which is fully flexible and can be sold on (for any price at any time) or can be written into your will as part of your estate. As owner of your own hotel suite you will receive 31 nights annual usage free of charge (subject to a small service charge for linens etc). Your personal usage is also
available for your friends, family, business associates etc. When you are not using your hotel room the hotel management company will rent out your room to paying guests and you will receive exactly 50% of the net nightly room rate. Your hotel room is fully managed by the hotel management company giving you a completely hassle free investment. The management company will advertise and manage the bookings of your room plus organise receipt of money. They receive 50% of the net room rate; this gives you assurance that they will make sure your room is let as much as possible as only way they are making their profit. The management company pay for all other costs such as cleaning, washing of towels and linens, staffing costs and advertising etc.
2. Earn money
Receive 50% of the room’s income High capital appreciation, 12% approx. Tax efficient investment
3. Stay up to 31 nights each year
Stay in the hotel rent free Enjoy central location
Frankfurt´s Skyline
THE ADVANTAGES
Advantages Over Traditional Buy-to-Let
If a traditional buy-to-let investor purchases an apartment, he has to furnish it, insure it, find a tenant and usually employ a third party management firm to look after it for him. When it is not rented out he still has all the outgoings, rates, electric, management etc. By purchasing a hotel room you avoid all of these problems. The purchase price includes all furniture and fittings. You have no rates, electricity or insurance etc. to pay... ever! You do not need to find a tenant or a third party management company because everything is done for you. The room is let out on a regular basis and you receive your 50% net income, every quarter, with no deductions. Every year, the investor is sent an invoice for the maintenance of the unit and this is the only deduction due per annum. The investor is free to sell the room at anytime and we will offer it to the waiting list of buyers. Like any property, you can leave it in a will and the income and benefits continue to whoever inherits it. Room Income The room income will be paid to the room owners on a quarterly basis. It will be paid within 14 days of the end of the quarter. For example the first quarter of the year’s income will be paid by the 14th April etc.
THE HOTEL
The hotel is centrally, yet quietly located in the district of Sachsenhausen, amidst the old town of Frankfurt on the Main. From here it takes only a few minutes to reach the main fairground, main train station and both the financial and cultural centres. We offer you single, double and triple rooms, starting from €83.700. This hotel is a stylish boutique hotel. A home from home for the frequent traveller,
Hotel Royal aims to combine extreme comfort and accessibility at affordable prices.
Why Frankfurt?
Frankfurt - the second largest economic area in Germany With a population of approximately 5 million, Frankfurt Main is the second largest economic area in Germany. The region encompasses parts of three federal states and is one of the most dynamic and best performing economic regions in Europe.
Hotel Room
Frankfurt Main Airport
Germany ´s biggest companies, such as Lufthansa, Deutsche Bank, etc. have their headquarters based in Frankfurt. Frankfurt’s airport is the largest one in the whole of Germany, the third largest in Europe and the eights largest of the world! Frankfurt Main is so much more than just a successful business centre. The region is home to world-famous museums, wellknown orchestras, and a lively theatre, art and cultural scene. Frankfurt Main offers a diverse range of cultural and leisure activities. Therefore, Frankfurt does not only attract business travellers who attend meetings and trade fairs in Frankfurt, but also millions of tourists who enjoy Frankfurt’s cultural scene and breathtaking environment. Since hotel rooms in the city of Frankfurt are obviously in high demand, buying a hotel room in Frankfurt is a very shrewd investment. Upcoming trade fairs in Frankfurt: Automechanika 2008 16 - 21 September Leading International Trade Fair for the Automotive Industry
ICSE Europe 30 September - 02 October International Contract Services Expo P-MEC Europe 30 September - 02 October Pharmaceutical Machinery and Equipment Convention CPhI Worldwide 30 September - 02 October The pharmaceutical ingredients event where intelligence gathers
3. SIPP Investment This investment fulfills the necessary rules, making it eligible to be held as a SIPP (Self Invested Personal Pension, only for UK residents). However, you will not have the right to use your hotel room personally, since it is against the SIPP-rules.
FAQ’S
What is so special about this hotel? This investment is a hotel buy-to-let product that allows you to buy a 99 year exclusive licence to a hotel room. This gives you: A legal Exclusive Licence to Occupy or Rent. The right to use that guestroom or others in the hotel, free of charge for maximum of 31 nights per year (subject to a small user fee per night used). The opportunity to generate income from the room for the remaining nights of the year. The opportunity to generate capital growth from the asset when you sell it.
Payment terms
We offer you several payment options: 1. Finance package You have the possibility of paying just a 50%-deposit and paying the remaining balance over the next 5 years, interest-free. 2. Cash payment If you are going to purchase your double hotel room for cash, we will give you a discount of 10%.
How will I generate income from my room? The hotel guest will pay for the room in the usual way. You will receive 50% of the room revenue after deduction of any travel agency commission, credit card costs and sales tax/VAT. At the end of each quarter, the managing agent will produce a set of accounts for you outlining the income received from your hotel room during that quarter. Your 50% will then be paid to you at that time. Will I have to pay the managing agent for this service? No. The managing agent will receive the remaining 50% of the room revenue. This income will cover cleaning, reception and any other regular management expenses including repairs and refurbishment from time to time.
Will I have to make any other payments? You will have to pay an annual contribution towards the cost incurred to maintain the legal title of the Hotel such as insurance, ground rent, property taxes etc. When you use the hotel, you will also have to pay a small user fee per night used, in order to cover the cost of laundry and utilities such as water. This is set at €20 per night. Who manages my room and how do I make a booking? At the same time the Licence is granted to you, you will enter into a Rental Agreement with the managing agent appointed by the freeholder. The managing agent will deal with the day-to-day running of the hotel for all the tenants in the building. Once the Rental Agreement has commenced you will need to notify the managing agent when you require your room, either by fax, phone or email, with at least 20 working days’
notice. The managing agent will then confirm your booking to you in writing. In the event that the hotel is already fully booked, the managing agent will do his best to offer other dates suitable to you. What happens if I do not wish to use my room for the full 31 days? Your room remains available for the public to book at all times until you let us know that you wish to use it. Hence, if you do not use your room yourself, the managing agent will be trying to let it out as usual with a resultant increase in your income. Will I have to repair and decorate the room? No. The managing agent will at its expense be responsible for cleaning, laundry, repair, maintenance, decoration and housekeeping of the room and will supply, maintain and repair (and when required replace and renew) all the furniture in your room.
River Main
This will be covered by the managing agent’s share of the room revenue. Will I have to pay for utilities and other outgoings? No. The managing agent will pay for these. Can I make any alterations to the room? No. The managing agent requires that all rooms are furnished and decorated to the same standard and appearance. They will be allowed to make any alterations, which are consistent with the rest of the rooms in the hotel. How will the other rooms in the hotel be dealt with? The other rooms will be dealt with in the
same manner as your room, as all Licence Holders will enter into the same Licences and Rental Agreements. The managing agent will endeavour to ensure that all rooms of each type will be treated equally when allocating bookings so that there is, as far as is practical, an even spread of occupation and rental income throughout the year. All monies received for each room will be held separately for each individual tenant, and all accounts will be published quarterly for all the rooms in the hotel. How do I know my room receives the same revenue as the others? We have a property management system whereby we rotate all rooms to equalise revenue amongst all our Leaseholders in a particular room category.
Can I sell my room? Yes. You may sell or charge your Licence. However, you are not permitted to sub-let your room or advertise market or instruct any other agent to do so either. However, if you wish to introduce clients to the hotel, the managing agent will, if notified at the time of booking, allocate that client to your room, subject to availability. Can I sell my room privately or using any estate agent? Yes, we offer a resale service, however as with any property your hotel room can be sold through any agent.
Town Hall Square
Frankfurt impressions - mixture of cultural and business flair
Opera House
Deutsche Bank Central Station Mercedes
*Prices subject to availability and changes. Currency subject to exchange rate.
Tel: 0845 365 0265 (From UK only) or 0034 950 466 465 (International) www.simplypropertyabroad.com info@simplypropertyabroad.com