11 November 2009
The idea of a buy-to-let-hotel room, popularised in the USA by Donald Trump has spread to other countries like India but is yet to come to Africa. However, this has not prevented a Gaborone businessman from investing in the new business as Correspondent LINDA SWIZA discovered
The world tourism sector has re-invented itself in recent years as far as shareholding of property is concerned. While an investor can own a share of the market through hotels, lodges and other property, the breakdown has been levelled down to an individual owning one particular suite rented out year by year.
Buyers are being tempted into more adventurous forms of investment such as hotel rooms, fractions of overseas homes as well as commercial property funds.
Most recently a number of people bought all the 170 suites of Log Inn, a proposed exclusive four star hotel to be built in Kakkanad Chochin City, India. One of the investors in the buy-to-let-hotel-room is Manoj Panacker, a Gaborone business. He describes the venture as a novel idea with good returns.
"It is a great opportunity for individuals to invest in the tourism sector and I have personally bought a suite in this hotel which is expected to be fully completed by March 2012," said Panacker.
He explained that the concept of buying a suite or two in a hotel is a new trend in the tourism sector and it is fast gaining popularity.
"As an owner of a suite you get club membership where you can access services at discounted rates, a recommended guest by you also gets a 15 percent incentive of the total cost.
The way it works is that you lease out your suite to the company which runs the hotel and besides the profits that you make, there are also other benefits which you are entitled to," he explained. These benefits include being able to stay in your own suite free of charge for six days every year.
Panacker said many people in Botswana do not know that they can invest in the tourism industry outside the country especially if they have idle money.
"It is something worthwhile to undertake and I am expect that I will get good returns from my investment," he said. He said there is another upcoming hotel project in Muaaer India, which Batswana can buy into.
India's domestic tourism has been growing at a geometrical proportion in the last three years. The developments in the IT and industrial front has also led to a burgeoning tourist market waiting to be exploited.
Meanwhile, the proposed Log Inn will have a spacious lobby, restaurants, auditorium and convention centres, swimming pool, spa and massage centres, a health bar, beauty parlour, and business centres. Each suite will come complete with entertainment and utility electronic gadgets to assist staff in their personalised service. The suites will have Wi-Fi connectivity.
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