All-inclusive investment options with Rodschinson
The explosive growth of resort types in the last two decades has led to a vast number of options within this segment. Whether it is a luxury beach resort in the Caribbean, a ski residence in the Alps, a Club Med-type of a resort in Italy or a nature-loving compound in Portugal, the market has shown a stable and steady interest for all types of different resorts.
As a result of the vast growth in resort interest, these properties provide investors with interesting rental potential. The rental appeal of a resort property reaches far and wide, often well beyond that of many hotel or holiday home investment options. Many operators strike long-term rental agreements and are prepared to splash out, because their customers are willing to pay premium prices for short-term stays at the properties in question.
Because of the long-term character of most rental agreements, resorts offer great resale value. A strong and steady demand in the market, often determined by the unique locations many resorts can be found in, has led to investors vying for the most attractive assets. Future bookings and loyal operators further add to the investment appeal.
Resorts are characterised by the large number of services they provide to their guests, such as restaurants, bars, recreation, yoga and wellness, gyms, kids’ facilities, pool services, among many others. This in itself attracts vast amounts of customers, as resorts often say themselves; there is something for everyone.
As a result of all the different services provided, resorts are among the most staff- intensive and operationally most intense properties to run. From receptionists to waiters to cooks to cleaners to yoga teachers: a resort is often somewhat of a mini-city with hundreds of people at work during the day and often dozens at night. Because of this, operators are often in any agreement for the long-run as getting a resort up and running costs time, training and significant investment.
Before any investor buys or invests in a resort property, due diligence is vital. ROD Resorts has years of experience looking into operators’ profile as technical expertise and operational know-how are crucial for the successful running of a resort. Before any long-term operational agreement is reached, our team of global experts works with clients to scrutinize past performances, strategic future plans and any other challenges that may arise during the acquisition process.
Investments in operational real estate may present risks and resorts are no exception. For example, an economic crisis may lead to dwindling visitor numbers or an economic boost may lead to huge staff shortages or pay increases, leading to substantial extra costs. To avoid such a commercial calamite, our resort property experts always push for a sensible, risk-responsible approach: one that generates sufficient stable income yet minimizes unnecessary risks.
The key for any investors looking to pour capital into the resort property space is to take the long view. The investors Rodschinson works with increasingly take a long-term view and analyse, more than ever, the operational experience, expertise and industry knowledge of their prospective tenants. Rodschinson would be delighted to provide you with more information about our approach and the way we work.
Rodschinson Investment is your trusted investement partner to make the smartest possible move whatever is your current situation.
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