A Condo is a type of accommodation that is
similar to a hotel room or suite. For example,
if a hotel has 100 rooms, then it also has 100
condos. Sub-condos are fractions of a hotel
room; if a hotel room is divided into ten parts,
then it will have ten sub-condos.
You will receive partial ownership of a condo
(hotel room) referred to as a "sub-condo".
Alternatively, you can gain full ownership of
the condo by purchasing all its available
sub-condos.
All properties undergo due diligence to ensure
they meet the requirements of four main areas:
property, market, legal, and earning potential.
Property – Property inspections include details such as the timeline, budget, zoning, architectural plans, and title report.
Market – Market analysis focuses on microenvironmental opportunities and risks including appraisals, market overviews, demographics, comparable data, and a location map
Legal – Legal checks cover rights, responsibilities, and remedies
Earning potential – Finally, earning potential is evaluated based on the viability of different business models that could generate the highest returns for the property.
Property – Property inspections include details such as the timeline, budget, zoning, architectural plans, and title report.
Market – Market analysis focuses on microenvironmental opportunities and risks including appraisals, market overviews, demographics, comparable data, and a location map
Legal – Legal checks cover rights, responsibilities, and remedies
Earning potential – Finally, earning potential is evaluated based on the viability of different business models that could generate the highest returns for the property.
A SEBI-registered merchant banker calculates the
value of a hotel room. Appreciation of the
property is based on factors such as per-room
tariff, appreciation over time, occupancy
percentage, customer reviews, and land
appreciation of the hotel. Every month, a
SEBI-registered investment banker determines the
value of that hotel.
Owning a sub-condo is a form of real estate
ownership. You purchase a share in the
associated Special Purpose Vehicle (SPV). This
entitles you to use and earn from the property
according to the percentage of shares you own,
for an entire year.
Generally, Special-Purpose Vehicles (SPV) are
legal entities or subsidiary companies
established for a specific purpose or to achieve
a particular goal.
HotelYaari creates a Special Purpose Vehicle
(SPV) in the form of a Private Limited Company
for each Hotel or Resort. This gives you
ownership of the shares in that company and the
associated voting rights. You will also receive
monthly payouts based on your shareholding, as
well as Vacation Nights at the property.
Timeshares are different, as they grant you
rights to use a fixed amount of time in hotels
or resorts shared by many people. For more
information on the difference between a Condo
and Timeshare, click here.
HotelYaari assists with locating and assessing
potential co-owners. Our platform makes it
easier to take decisions regarding the property
among the owners. All booking is managed by
HotelYaari's scheduling software, eliminating
the need to communicate with other co-owners.
The number of Sub-Condo owners is determined by
the price of the associated Hotel Room (Condo).
As the entry price for owning a Sub-Condo is set
at 5 Lacs, there can be a minimum of 1 to a
maximum of 20 Sub-Condo owners depending on the
price.
We offer a digital platform with a personalized
dashboard that allows you to purchase and
monitor information for each of your sub-condos.
The Hotel or Resort is owned by a Private
Limited Company, and shares of the property are
issued to buyers according to the amount of
money invested. Each share is independent from
the others, so the owner has the right to use
and sell their share as they choose.
There is a cooling off period of 1 Year after
the possession of the property. After this
period, the particular property shares will be
available for resale.
Sub-Condos offer easy liquidation options, with
no restrictions on selling, gifting or
transferring shares. After the lock-in period,
owners have full freedom to sell at their
desired value. During the exit process, Hotel
Room owners must engage HotelYaari's services to
offer the shares to other co-owners, through
common channel partners or on HotelYaari's
platform. If HotelYaari is unable to sell the
share, owners may then sell to a third-party of
their own choosing.
The Sub-Condo Owner will determine the selling
price. Each month, a SEBI-registered Investment
Banker will assess the value of the Hotel
Sub-Condo shares.
The owners have full freedom to sell their share
without needing permission from the other
co-owners.
Yes, if the owners jointly decide that
HotelYaari is not providing adequate service,
the owner group can vote to remove HotelYaari as
the program manager of the Hotel or Resort.
Yes, the Sub-Condo owner can mortgage their
underlying share in the property.
Sub-Condo owners will be allocated days
according to the Hotel's scheduling system. It
is easy to use and fair based on the number of
shares owned. The system displays real-time
availability and supports three types of owner
stays: Planned, Special, and Spontaneous.
Planned stays can be booked up to 24 months in
advance, while Special stays include major
holidays like Diwali and Christmas. Spontaneous
stays must be made 24 hours to 30 days before
arrival. Room availability will determine how
many stays are possible; it is suggested that
Sub-Condo owners plan their vacation nights
during the Off Season.
Your access depends on the number of shares you
own. As per each share, up to 1 day will be
allocated to each Sub-Condo Owners in a year.
The company will generate income from room
reservations.
You will be liable to get 50% of the profit
generated as per your share ownership. Monthly
Income Calculator is available with every
project. Please refer to the same.
The Organization which has been entrusted with
the Management of the Property will take 50% of
the profit generated. This arrangement ensures
that the property is managed by experienced
Hospitality Professionals, who possess a wealth
of knowledge and expertise in the industry, thus
providing an optimal level of care for guests
and optimizing maximum revenue per share.
About HotelYaari
Discover
© HotelYaari - All rights reserved