Serviced Apartments/Hotel CIP

Hi all,

Just wanted to see if anyone here has any experience dealing with the development/management of serviced apartments/hotels. I'm just trying to get an understanding of the financials of the business, what capitalisation rates apply and any examples of a recent valuation/study (in Melbourne).

The reason I ask is because I have land that can be developed, and I am considering this type of development for cashflow and income purposes.

Thanks in advance.

PS When I say hotels, I mean accommodation, not the pubs.
 
Whos going to manage the property when completed? hiring onsite company/ manager- or will this be a semi-full time /part time job?


Regards
Michael
 
Probably franchise from a big hotel group like Accor for branding/systems and hire a manager full-time to look after the place. Alternatively get a hotel group to lease the place from me. But I think I would make far more money if I paid someone to manage it for me rather than leasing it out.
 
Probably franchise from a big hotel group like Accor for branding/systems and hire a manager full-time to look after the place. Alternatively get a hotel group to lease the place from me. But I think I would make far more money if I paid someone to manage it for me rather than leasing it out.

agreed. ive only got some passing knowledge but someone i know did exactly that when he built a hotel on robinson ave, northbridge just over a decade or so ago. built and managed it himself with some help (no prior hotel experience but was a very successful developer), ended up selling for close to 100% profit a few years after opening. it is now an all seasons hotel.
 
Have a talk to Quest apartments. Their offices are in Melbourne. I have used them in the past for one of my clients.
 
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