Over the past decades, the housing construction market has faced significant changes. In particular, this sector of the economy has come under increased attention of state control, with improvements in town-planning and banking regulation.

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

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 growth of remote jobs, people are becoming more mobile and most are moving from owning real estate to long-term rentals.

Young people who are economically active are starting to favor apart-hotels as it allows them to live in comfortable conditions, close to all the necessary infrastructure and among their like-minded people.

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

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

Maestro Hotel Management started its history in 2017 with Alexandrovsky Hotel, and the next step happened in 2017 when we took over the management of M1 Club Hotel. Then the company name and the full-fledged brand MAESTRO appeared. Now the company successfully manages a room stock of 385 rooms and apartments and this figure continues to grow, as we take under management new objects, 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 projects for the construction of apartment complexes throughout the country.

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

M2 Club Apartments is a new generation clubhouse with 170 rooms in the center of Odessa and on the beach.

Soho House is a complex of 42 luxury apartments in a restored house in the center of Odessa.

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

Investing in 2024: a selection of aparthotels

In what to store money – everyone at least once in his life has asked this question. In precious metals, which are reliable but do not bring profit? In a savings account? In volatile stocks and bonds? Or in real estate?

Very often, people who have tried every known type of investment come to Maestro. In the end, they realize that they should invest in real estate. One of the main reasons for choosing apart-hotels for investment is the clear income scheme, as well as the materiality of the asset – you can visit, see, test it yourself!

In addition, apart-hotel successfully combines different types of rent: short-term, medium-term and long-term. This allows you to create maximum utilization and get the optimal benefit for the investor. Investing in real estate is a safe way to protect funds from inflation, as the value of real estate, as a rule, increases over time, which provides protection against depreciation of money.

The main advantage of apartment hotels is the management company, which provides a steady income to investors without requiring them to be personally involved in the management of the apartments. One of the reasons why investors choose Maestro aparthotels is the Maestro Hotel Management Company, which takes care of all aspects of apartment management.

Maestro offers a simple and convenient way of investing. After purchasing the apartments, the company takes over their management, freeing the investor from the need to deal with maintenance on his own. This allows the investor to concentrate on receiving a stable income.

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

Choosing a successful apartment hotel: 5 key factors

There are 2 types of people to whom it makes sense to invest in apartments.

1. Speculative, which implies that an investor purchases an object and resells it after a certain period of time.
2. Investing for passive income. Now this option has become more attractive, as it allows the property owner to receive a constant income from rent, as well as to increase the value of the object due to the general increase in housing prices and improvement of infrastructure.

But not all apart-hotels are equally successful in maneuvering the ever-changing market. How can you identify a project that will be popular and profitable while avoiding failure? Consider these 5 key factors.

Location

One of the main factors of success is the location, which should be convenient and have good transportation 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 should have the experience and competence to organize the work of the complex at a high level. At Maestro the occupancy does not fall below 80% regardless of the season.

When the apartments are handed over for management, the Maestro management company assumes all obligations:

• Serves the guests of the apartments;
• develops marketing strategy and organizes promotion of the apartment hotel on all available resources;
• cooperates with booking sites, promotes the website;
• builds a partner network of corporate clients;
• studies demand, expectations of potential guests, forms pricing policy depending on the utilization of the complex and the market situation;
• develops marketing strategy and organizes promotion of the apart-hotel on all available resources.
  of the complex and the market situation;
• analyzes competitors;
• attracts new guests;
• analyzes feedback and feedback from guests and improves service.

Yield program

An important factor is a clear and transparent yield program, which depends on the occupancy of the hotel.

Infrastructure

This is a factor that is often underestimated. But without “points of interest”, which will be in the apartment complex itself or in walking distance, the project risks turning into an uninteresting for guests, and therefore not profitable object. Maestro provides a wide range of infrastructure in its projects – from restaurants and swimming pool to a co-working center and beauty salon. The concept of “all and at once” attracts guests and provides the apart-hotel with constant utilization.

Community

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

Bottom line

So, there are several important arguments that justify investing in apartment 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 apartment hotels.
• High returns and quick payback: serviced apartments are characterized by high returns, reaching 10-15% per annum, which is superior to conventional rental apartments. The aparthotel investment model typically provides a payback within 7-8 years, even with an average annual occupancy rate of 50-60%.
• Rental flexibility: serviced apartments offer investors the flexibility to manage their own space, allowing a combination of personal use and short-term rentals. This flexibility makes investing in apartment hotels more attractive.
• Demand from corporate clients: the increasing need for longer stays during work trips makes service apartments an interesting option for corporate clients.
• Safety and convenience for investors: the use of modern technology and professional hotel management provide investors with a high level of safety and convenience in managing their properties.

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