Hotel investment seen as way to beat inflation

A soon-to-open hotel near Bonifacio Global City is offering investors a return that would outpace investment value losses due to inflation.

Novel Residential Concepts Inc. COO Marc Ngo said investing in a unit at Ridgewood Premier Hotel located along CP Garcia Avenue in Taguig City and utilizing this as part of its condotel services, the buyer receives a guaranteed six percent return per year.

Novel is the developer and operator of Ridgewood Premier Hotel.

The Bangko Sentral ng Pilipinas forecasts inflation to likely settle at 6.1 percent for this year. This means that the average home purchase has a good chance to keep up with inflation.

However, if the hotel occupancy rate stays healthy throughout the year, unit owners will enjoy an additional return of up to six percent. Taken together, that’s up to 12 percent return per annum, or way above the inflation rate.

Even if the country’s inflation rate ends up at around eight percent, an investor can still come out on top of it with a Ridgewood Premier Hotel investment if he nets between nine and 12 percent per annum.

Ngo said this is why investing in real estate might offer the best returns for your funds, particularly as the Philippine real estate industry is now on the road to full recovery, with many developers resuming their construction activities and some even launching new projects.

Ngo, who will be in charge of the condotel’s day-to-day operations, added that for the past few months, MICE (meetings, incentives, conferences, and exhibits) events have been back in full swing. He said this would give the hotel a competitive advantage given its proximity to Bonifacio Global City and the international airport, plus its plan to offer highly competitive room rates.

“With the country now fully open after the pandemic restrictions, tourism is slowly going back to 2019 levels. Starting this year, more and more foreign tourists are finding the Philippines an ideal destination due to its many attractions,” Ngo said.

With over 85 percent of the condotel project already sold, there are a few remaining units left for investors to make a decision, Ngo said.