| The 1st Residential "Condotel" in the Philippines with a 40 floor High Atrium from 2nd floor up to the Penthouse |
| A prestige condominium hotel stands tall in its 42-storey stature comprising of 405 units in the heart of Metro Manila |
| Lancaster Condo Hotels (Condotels) |
| Lancaster Suites | Lancaster the Atrium | Lancaster Cebu Concept One Marketing Network | Pacific Concord Properties, Inc. MANILA HEAD OFFICE: 622 Shaw Blvd. corner Samat St., Mandaluyong City 1552 Philippines |
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| Brokers and Agents Welcome!!! |
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| Philippine Condo Hotels |
Why Condo Hotels Are a Hot Concept?
From Boston to Los Angeles, London to Milan, Dubai to Hong Kong and Manila to Cebu developers are busy converting existing hotels to one of the hottest
concepts in the lodging and real estate industries today - condominium hotels. In many cases, developers are working with branded hotel companies to build
mixed-use luxury properties in city centers and resort markets. These complexes typically include a hotel, residential units, office space and retail stores.
So, why have condo hotels become so hot? For starters, developers can sell off hotel units prior to construction, enabling them to obtain construction debt and
equity more easily than if they were building a traditional hotel. Additionally, the inclusion of attractive condos within hotels can typically garner a higher sales price
per square foot, allowing developers to generate cash flow to cycle back into the facility or new projects, according to Pacific Concord Properties, Inc. The pioneer
in condo hotels industry in the Philippines.
Pacific Concord Properties is the owner and developer of Lancaster series of condo hotels located in Metro Manila and Cebu; Namely Lancaster Suites and
Lancaster the Atrium located in Shaw Boulevard, Metro Manila and Lancaster Cebu in Mactan, Cebu.
During the past few years, while the hotel industry was in the midst of a cyclical downturn, condo hotels have been an attractive way for developers to get deals
done. In fact, many luxury hotels would not have been built without a residential component, says Paul Lizondra, marketing head of Pacific Concord Properties.
Lenders are more willing to finance condo hotels with only 20% equity because they are banking on projected condo sales prior to construction. Traditional loans
require about 30% to 40% equity, says Lizondra. "Assuming sales happen as projected, the loan is guaranteed by condo purchases." Additionally, partnering with
luxury and boutique brands can help turn up the heat even more on this already hot segment. So, it's no surprise that developers are turning to upscale brands like
Four Seasons as well as Marriott's Ritz-Carlton, and Starwood's St. Regis and W hotels. Even some other luxury brands, which haven't traditionally offered a
mixed-use residential component, are entering the playing field, including Hyatt's Grand Hyatt, Mandarin Oriental, and Hilton's Conrad. And Pacific Concord
Properties premier the Lancaster brand of condo hotels, is altering Philippine real estate industry.
There's no question about it: Buyers are willing to ante up more money for a branded luxury condominium than a similar condo in another building. "The brand is
important because people are buying into a lifestyle, and the brand is an extension of that lifestyle," says Lizondra.
"Let's not ignore what drives corporate development - profit," says Jim Alderman, senior vice president of development at Starwood Hotel & Resorts Worldwide.
World-class example
In Manhattan, The Related Cos. and Apollo Real Estate Advisors developed the new Time Warner Center, which opened to great fanfare in 2004. The center
includes The Mandarin Oriental luxury hotel, as well as The Residences at the Mandarin Oriental - luxury condos ranging from 540 sq. ft. to 8,400 sq. ft.
The complex also encompasses Time Warner World Headquarters, The Shops at Columbus Circle, One Central Park condominiums, 211,000 sq. ft. of Class-A
office space, Jazz at Lincoln Center, and 504 parking spaces.
The Mandarin Oriental hotel's 65 residential apartments, located on floors 64-80, have sold at prices ranging from $2.5 million to $30 million. Unlike some other
condo hotel projects, where the condos are rented out as hotel suites when not in use, the residences at Mandarin Oriental are used only by owners and their
guests, says de Franca. "This was a decision we made with Mandarin - to ensure exclusivity for owners."
Mandarin Oriental owners were willing to pay higher prices to buy luxury apartments at the upscale hotel complex, where they have access to all the hotel services
and amenities. "Certainly the price per square foot is higher than the building next to us, but our residents have access to our pool and fitness center, plus they get
priority treatment at our restaurant and spa," says Kristin Ruble, director of sales and marketing at The Mandarin Oriental.
In Manila, Pacific Concord Properties developed Lancaster Suites, a prestige condominium hotel stands tall in its 42-storey stature comprising of 405 units, with
the facilities of a world class hotel such as roof deck swimming pool, fitness center, spa and room service.
Flurry of new projects
With the success of the Mandarin Oriental in New York and the high demand for serviced hotel apartments in urban markets worldwide, the hotel company has
teamed up with CWB Boylston to open a similar property in Boston in September 2007.
CWB Boylston is building a 150-room Mandarin Oriental hotel, 50 ultra-luxury residences, 35 rental apartments, retail shops and restaurants in the heart of
Boston's Back Bay. Almost all of the residences have been sold - sans advertising or marketing - for $2 million to almost $10 million, says CWB Partner Robin
Brown.
Developer Espirito Santo Group also is realizing success with the branded mixed-use model. It partnered with Hilton's luxury Conrad brand to open the first newly
built Conrad hotel in the U.S. last year in Miami. The Conrad Miami is part of the Espirito Santo Plaza and includes 203 rooms, 116 residences and 11 penthouse
suites. Since the complex opened, the Conrad name has helped drive condo sales, as well as generate business from office tenants in the complex. Many tenants
have rented meeting space in the hotel, and some of the executives have even bought condos at the Conrad. "This is truly a project where everyone benefits. The
synergy works," says Bill Ross, president of Estoril Inc., which is working with Espirito Santo to sell condos and lease office space. Some 93% of the complex's
300,000 sq. ft. of office space is leased out, making Espirito Santo Plaza one of the fastest lease-ups in Miami history, says Ross.
And in the Philippines, with the success of Lancaster Suites Manila and Lancaster Suites Cebu, and the high demand for hotel rooms because of booming real
estate industry and Philippine economy. Pacific Concord Properties is geared to build a second tower adjacent to Lancaster Suites, to be called Lancaster the
Atrium. As the name says, this 42 storey condo hotel really have an atrium from the second floor up to the penthouse, this condo hotel when finished will have 850
rooms for condo hotel operation. And this is the first and only condo hotel in the Philippines with such feature.
From Boston to Los Angeles, London to Milan, Dubai to Hong Kong and Manila to Cebu developers are busy converting existing hotels to one of the hottest
concepts in the lodging and real estate industries today - condominium hotels. In many cases, developers are working with branded hotel companies to build
mixed-use luxury properties in city centers and resort markets. These complexes typically include a hotel, residential units, office space and retail stores.
So, why have condo hotels become so hot? For starters, developers can sell off hotel units prior to construction, enabling them to obtain construction debt and
equity more easily than if they were building a traditional hotel. Additionally, the inclusion of attractive condos within hotels can typically garner a higher sales price
per square foot, allowing developers to generate cash flow to cycle back into the facility or new projects, according to Pacific Concord Properties, Inc. The pioneer
in condo hotels industry in the Philippines.
Pacific Concord Properties is the owner and developer of Lancaster series of condo hotels located in Metro Manila and Cebu; Namely Lancaster Suites and
Lancaster the Atrium located in Shaw Boulevard, Metro Manila and Lancaster Cebu in Mactan, Cebu.
During the past few years, while the hotel industry was in the midst of a cyclical downturn, condo hotels have been an attractive way for developers to get deals
done. In fact, many luxury hotels would not have been built without a residential component, says Paul Lizondra, marketing head of Pacific Concord Properties.
Lenders are more willing to finance condo hotels with only 20% equity because they are banking on projected condo sales prior to construction. Traditional loans
require about 30% to 40% equity, says Lizondra. "Assuming sales happen as projected, the loan is guaranteed by condo purchases." Additionally, partnering with
luxury and boutique brands can help turn up the heat even more on this already hot segment. So, it's no surprise that developers are turning to upscale brands like
Four Seasons as well as Marriott's Ritz-Carlton, and Starwood's St. Regis and W hotels. Even some other luxury brands, which haven't traditionally offered a
mixed-use residential component, are entering the playing field, including Hyatt's Grand Hyatt, Mandarin Oriental, and Hilton's Conrad. And Pacific Concord
Properties premier the Lancaster brand of condo hotels, is altering Philippine real estate industry.
There's no question about it: Buyers are willing to ante up more money for a branded luxury condominium than a similar condo in another building. "The brand is
important because people are buying into a lifestyle, and the brand is an extension of that lifestyle," says Lizondra.
"Let's not ignore what drives corporate development - profit," says Jim Alderman, senior vice president of development at Starwood Hotel & Resorts Worldwide.
World-class example
In Manhattan, The Related Cos. and Apollo Real Estate Advisors developed the new Time Warner Center, which opened to great fanfare in 2004. The center
includes The Mandarin Oriental luxury hotel, as well as The Residences at the Mandarin Oriental - luxury condos ranging from 540 sq. ft. to 8,400 sq. ft.
The complex also encompasses Time Warner World Headquarters, The Shops at Columbus Circle, One Central Park condominiums, 211,000 sq. ft. of Class-A
office space, Jazz at Lincoln Center, and 504 parking spaces.
The Mandarin Oriental hotel's 65 residential apartments, located on floors 64-80, have sold at prices ranging from $2.5 million to $30 million. Unlike some other
condo hotel projects, where the condos are rented out as hotel suites when not in use, the residences at Mandarin Oriental are used only by owners and their
guests, says de Franca. "This was a decision we made with Mandarin - to ensure exclusivity for owners."
Mandarin Oriental owners were willing to pay higher prices to buy luxury apartments at the upscale hotel complex, where they have access to all the hotel services
and amenities. "Certainly the price per square foot is higher than the building next to us, but our residents have access to our pool and fitness center, plus they get
priority treatment at our restaurant and spa," says Kristin Ruble, director of sales and marketing at The Mandarin Oriental.
In Manila, Pacific Concord Properties developed Lancaster Suites, a prestige condominium hotel stands tall in its 42-storey stature comprising of 405 units, with
the facilities of a world class hotel such as roof deck swimming pool, fitness center, spa and room service.
Flurry of new projects
With the success of the Mandarin Oriental in New York and the high demand for serviced hotel apartments in urban markets worldwide, the hotel company has
teamed up with CWB Boylston to open a similar property in Boston in September 2007.
CWB Boylston is building a 150-room Mandarin Oriental hotel, 50 ultra-luxury residences, 35 rental apartments, retail shops and restaurants in the heart of
Boston's Back Bay. Almost all of the residences have been sold - sans advertising or marketing - for $2 million to almost $10 million, says CWB Partner Robin
Brown.
Developer Espirito Santo Group also is realizing success with the branded mixed-use model. It partnered with Hilton's luxury Conrad brand to open the first newly
built Conrad hotel in the U.S. last year in Miami. The Conrad Miami is part of the Espirito Santo Plaza and includes 203 rooms, 116 residences and 11 penthouse
suites. Since the complex opened, the Conrad name has helped drive condo sales, as well as generate business from office tenants in the complex. Many tenants
have rented meeting space in the hotel, and some of the executives have even bought condos at the Conrad. "This is truly a project where everyone benefits. The
synergy works," says Bill Ross, president of Estoril Inc., which is working with Espirito Santo to sell condos and lease office space. Some 93% of the complex's
300,000 sq. ft. of office space is leased out, making Espirito Santo Plaza one of the fastest lease-ups in Miami history, says Ross.
And in the Philippines, with the success of Lancaster Suites Manila and Lancaster Suites Cebu, and the high demand for hotel rooms because of booming real
estate industry and Philippine economy. Pacific Concord Properties is geared to build a second tower adjacent to Lancaster Suites, to be called Lancaster the
Atrium. As the name says, this 42 storey condo hotel really have an atrium from the second floor up to the penthouse, this condo hotel when finished will have 850
rooms for condo hotel operation. And this is the first and only condo hotel in the Philippines with such feature.
 |
Along with the proliferation of condo hotels in South Florida and around the country has come a new breed of real estate -- the condo hotel hybrid. Webster's
defines hybrids as "the interaction or cross-breeding of two unlike sources." While the definition is usually applied to animals or plants, it can be relevant to real
estate as well.
Some five-star condo hotels have now begun to offer a percentage of their units as straight condos. That is, buyers would have deeded ownership of a one-, two-
or three-bedroom condo unit, and would also have access to all the wonderful amenities of the condo hotel. These amenities range from luxury spas and
world-class gyms to concierge services and on-site gourmet restaurants. Unlike the condo hotel units, however, the straight condos would not be a part of the
hotel's rental program.
With regard to investment potential, condo owners would benefit from the condo hotel property's well-known franchise name and five-star reputation. That is, a
condo in Canyon Ranch or the Four Seasons condo hotels would likely have better resale value than a comparable condo in a no-name property. The condos
would also be differentiated from all other condos on the market by virtue of the condo hotel's reputation and its five-star services.
defines hybrids as "the interaction or cross-breeding of two unlike sources." While the definition is usually applied to animals or plants, it can be relevant to real
estate as well.
Some five-star condo hotels have now begun to offer a percentage of their units as straight condos. That is, buyers would have deeded ownership of a one-, two-
or three-bedroom condo unit, and would also have access to all the wonderful amenities of the condo hotel. These amenities range from luxury spas and
world-class gyms to concierge services and on-site gourmet restaurants. Unlike the condo hotel units, however, the straight condos would not be a part of the
hotel's rental program.
With regard to investment potential, condo owners would benefit from the condo hotel property's well-known franchise name and five-star reputation. That is, a
condo in Canyon Ranch or the Four Seasons condo hotels would likely have better resale value than a comparable condo in a no-name property. The condos
would also be differentiated from all other condos on the market by virtue of the condo hotel's reputation and its five-star services.
 |
| STRAIGHT CONDOS IN CONDO HOTELS The Appeal of Hybrid Real Estate |