The housing market has faced significant changes in recent decades. In particular, this sector of the economy has come under increased government scrutiny, with improved urban planning and banking regulations.

But the main change in the real estate market has been a focus on the customer. Developers now need to pay much more attention to the “soft” aspects: the availability of parking lots around the building, green areas, infrastructure, project concept and positioning.

It is important for people to buy not only square meters, but also lifestyle, social status, habits, environment, and good neighbors. Also, due to the growing number of remote workplaces, people are becoming more mobile and most are switching from owning real estate to long-term leases.

Young people, who are an active economic population, are beginning to prefer apart-hotels, as it allows them to live in comfortable conditions, close to all the necessary infrastructure and among like-minded people.

By the way, this is the reason why experienced investors choose apartment complexes – they know that the demand for apartments will grow significantly in the coming years.

Eduard Rezhynsky, CEO of Maestro Hotel Management, will tell why it is worth investing in apart-hotels in 2024.

Maestro Hotel Management began its history in 2017 with the Aleksandrovsky Hotel, and the next step was in 2017 when we took over the management of the M1 Club Hotel. Then the company name and the full-fledged MAESTRO brand appeared. Today, the company successfully manages a room stock of 385 rooms and apartments, and this number continues to grow as we take over new facilities, both already operating and at different stages of construction.

In addition, we are actively developing and scaling our business and acting as a consultant and partner in various apartment complex construction projects across the country.

Currently, there are three promising areas in the apartment market: projects that are nearing completion and already have a good reputation; compact projects that combine the functions of living and service in historical centers and prestigious locations; and recreation complexes in resort areas. These are the investment projects that Maestro Hotel Management gathers in its portfolio.

M2 Club Apartments is a new generation clubhouse with 170 rooms in the center of Odesa and by the sea.

Soho House is a complex of 42 luxury apartments in a restored building in the center of Odesa.

Morandi Hotel 5 * is an architectural landmark with 53 rooms with a restaurant, SPA, swimming pool and more.

Investing in 2024: choosing apart-hotels

Everyone has asked this question at least once in their lives. In precious metals, which are reliable but not profitable? In a savings account? In unstable stocks and bonds? Or in real estate?

Very often, people come to Maestro who have tried all known types of investments. Eventually, they realize that they need to invest in real estate. One of the main reasons for choosing apart-hotels for investment is a clear income scheme, as well as the tangibility of the asset – you can visit, see, test it yourself!

In addition, an apart-hotel successfully combines different types of leases: short-term, medium-term and long-term. This allows for maximum utilization and optimal benefits for the investor. Investing in real estate is a safe way to protect funds from inflation, as real estate values tend to increase over time, which provides protection against money depreciation.

The main advantage of apart-hotels is the management company, which provides a stable income to investors without requiring their personal involvement in the management of the apartments. One of the reasons why investors choose Maestro apart-hotels is the management company Maestro Hotel Management, which takes care of all aspects of apartment management.

Maestro offers a simple and convenient way to invest. After purchasing an apartment, the company takes over its management, freeing the investor from the need to handle the maintenance on their own. This allows the investor to focus on generating a stable income.

The task of Maestro Hotel Management is to maintain high ratings and service levels in hotels. Reputation is of great importance for investments, as the rating reflects the quality of services and the level of customer confidence. And it determines the success of the entire apartment complex as a whole. A hotel with a large number of negative reviews will be difficult to “settle”, which means that the return on investment and income will be in question.

Choosing a successful apart-hotel: 5 key factors

There are 2 types of people who make sense to invest in apartments.

1. Speculative, which implies that the investor acquires an object and resells it after a certain period of time.
2. Investing for passive income. This option has become more attractive nowadays, as it allows the property owner to receive a steady rental income and increase the value of the property due to the general rise in housing prices and improved infrastructure.

However, not all apart-hotels are equally successful in maneuvering in the ever-changing market. How can you identify a project that will be popular and generate revenue while avoiding failure? Pay attention to these 5 key factors.

Location.

One of the main success factors is the location, which should be convenient and have good transport links to the main points of the city. For example, the Soho House apartment complex is a 2-minute walk from the most popular routes.

Management experience

The management company must have the experience and competence to organize the work of the complex at a high level. In Maestro, occupancy does not fall below 80% regardless of the season.

When transferring apartments to management, the management company Maestro assumes all obligations:

• serves guests of the apartments;
• develops a marketing strategy and organizes the promotion of the apart-hotel on all available resources;
• cooperates with booking platforms, promotes the website;
• builds a partner network of corporate clients;
• studies demand, expectations of potential guests, forms a pricing policy depending on the complex’s load and the market situation;
• analyzes competitors;
• attracts new guests;
• analyzes feedback and reviews of guests.

Profitability program

An important factor is a clear and transparent profitability program that depends on the hotel’s occupancy.

Infrastructure

This is a factor that is often underestimated. But without “points of interest” in the apartment complex itself or within walking distance, the project risks turning into an uninteresting and therefore unprofitable object. Maestro includes a wide range of infrastructure in its projects – from restaurants and a swimming pool to coworking and a beauty salon. The “all-in-one” concept attracts guests and ensures constant occupancy.

Community

Another feature of a successful hotel is its community. A city dies when people leave. People leave when the meaning is lost. People are now ready to pay not just for square meters, but also for staying among like-minded people with common values. Loyalty systems, discounts for guests from partners, concierge services, events and activities for guests – all this is what we use in Maestro’s practice to keep people coming back to us and make all investments work 100%.

Conclusion.

So, there are several important arguments that justify investing in apart-hotels.

• Development of booking platforms: The growing popularity of short-term rentals through well-known platforms such as Airbnb and Booking makes access to apartments easier and more convenient for travelers. This creates favorable conditions for increasing demand for apart-hotels.
• High profitability and quick payback: serviced apartments are characterized by high profitability, reaching 10-15% per annum, which is higher than conventional rental apartments. The investment model in apart-hotels usually provides a payback period of 7-8 years, even with an average annual occupancy rate of 50-60%.
• Flexibility in leasing: serviced apartments offer investors the flexibility to manage their own space, allowing a combination of personal use and short-term rentals. This flexibility makes investment in serviced apartments more attractive.
• Demand from corporate clients: the growing need for longer-term accommodation during business trips makes serviced apartments an interesting option for corporate clients.
• Security and convenience for investors: the use of modern technologies and professional hotel management provide investors with a high level of security and convenience in managing their real estate.

The success of an apart-hotel depends on a number of factors, ranging from location to trusted management. Only careful consideration of all aspects can ensure a steady income and a high rating in the hotel industry.