An official of a Filipino chain of hotels based in Cebu City has expressed concern over the long-term real estate growth of condominiums, saying that such will adversely affect the hotel industry.
 |
| Cebu Parklane International Hotel |
Cebu Parklane International Hotel GM Cenelyn Manguilimotan said last Wednesday (April 27, 2011) during a press briefing that "In the long run, we see the condominium market eating the market for our long-staying guests. Condominiums are not the direct competitors of hotels per se, but in a couple of years, they will be getting a chunk of our long-staying guests." According to her, long-staying guests, especially foreigners, averaging from two weeks to as much as 6 months to a year of occupancy, now have the option to purchase a condominium at affordable rates.
Well, Cebu is a premier tourist destination in the country, and real estate projects ARE going on there at full tilt. I daresay the hotel industry has a right to be a little worried. Since condo units are available for purchase by foreigners as long as total foreign ownership does not go over 40% of total units, these units may even be rented out at a much cheaper price than staying in a hotel. We'll see how this game plays out.
Doughnut buy! Doughnut buy!!!
Jon
"Now have the option to purchase a condominium at affordable rates." - I agree. Because of the many high-rising condominiums that are being developed today, the price could lower because of the competition.
ReplyDeleteManila real estate