Interest
in the Kisumu hotels sector has increased significantly in the past two years
following many years of intermittent development and association with other
shared ownership vehicles, says one of the realtors in Kisumu county in her
recent report: ' Hotels-The Kisumu Latest Hotel Phenomenon'
A complex hotel is a hotel operating unit
which is sold to individual equity investors, where each owner acquires a room,
suite or studio whilst the whole enterprise is managed as a hotel operation
under a single brand.
Buyers
own their units the same as regular apartments. There is no time limit to
ownership. All apartments come with either freehold or lease hold title deeds.
These hotels model are similar to the serviced apartment or apart hotel sector
and is suitable for an investor who wants to test the water in hotel
investment.
We
are seeing more and more sophisticated customers coming to the market and a
change in demand patterns; the traditional timeshare products seem past their
prime. This, plus an increase in investment appetite for the hospitality
sector, suggests that the condominium market looks set to grow. Many
international hotel brands have also declared that the Kisumu hotel landscape
is ready for cooperative hotel developments, either in conjunction with
self-contained hotel operations, as fully self-contained apartment’s plans or
as a part of a mixed-use development plan such as the Nairobi Brand.
Cooperative
hotels are significantly less developed in the Kisumu than in the capital of
Kenya, in part owing to a low cost residential focused market as well as the
lack of development in the hotel sector since the colonial period.
Alternative
hotel ownership are featuring more and more in the hotels sector, with the rise
of cooperative hotels and a shift in investor strategy, thus creating a new
investor profile. At the moment, the Kisumu apartments market is being targeted
and driven by private retail purchasers, typically reasonably net worth
individuals attracted by a city center or a resort investment foothold although
we are now seeing more and more first time property buyers moving into the Cooperative
Hotel marketplace.
Mamboleo
and Riat are particular favorites as an investment destination. There is room
for a wider pool of institutional and real estate investors to invest in a
portfolio of apartment units or the establishment of an investor-developer
partnership.
A
lot of this interest is being driven by the relatively cheap market prices in the
Kisumu compared to Nairobi, especially Kenya Housing prices, and the easy
payment options available for our Hotel Developments, but there are other
factors, too. Offshore Property Investors, Foreign baby boomers as well as
coast side Mombasa, are looking for ways to maximize their return on
investments as they approach retirement, and so are purchasing second homes,
particularly Hotel Investments where they can use the apartment for vacations
and rent it out through our In-House Hotel Management when they are not using
the unit thereby gaining rental incomes that on today’s purchase prices, give a
projected on their investments of some 12-16% depending upon the mode of
payment for the unit.
www.kenyan-real-estate.com
for more informative tips.
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