Economic and property market is slightly slow than previous, as can seen all of this through news, here I'm gonna share with you guy a new trend in property investment in Malaysia. Service Apartment, Hotel Management.

Service apartment come with hotel investment is a concept which purely designed for Investor. After u buy your property for investment, developer will help you manage your property as 4 Stars Hotel . Here is some of benefit of Hotel Investment :

1. Rental income of hotel investment is higher than normal rental

As a normal rental in the market is about RM 1,500 to RM 3,000 per months. It was depends on Location, Populations and facilities nearby like University, offices, Public transport of conditions.

But for hotel investment, rental income was charge by day. There is less possibilities 100% occupancy rate of the hotel, as i take it was just 50% occupancy rate per months, Per night rental was RM 300, there is 2 rooms of a service apartment, 15 days / 30 days rent out.

Per night :RM 300 

Rooms of Service Apartment : 2 rooms

Rent Out : 15 days / months

Rental income : RM 9,000 / months

2.  Rental of Hotel Investment is stable than normal rental 

There is alot of new project of Service Apartment/ Condo is under construction, so we never will be know how was the rental and demand after completion. We don't even know that can we rent out of our property. There is too alot of unpredictable or risk that investor need to bare.

For Hotel Investment, developer will provide Guarantee Rental Return for 1st 3 - 5 years for investors, so they noneed worry about for rentals. 

3. Hassle Free Investment

For normal rental of service apartment/ condo, there will be alot of issues to follow up from tenant like when the light is having some problem, electric, refrigerator or any problem of property. Owner need to spend his time/money to solve the issues, Just imagine how if owner have alot property and need him to manage all of this?

For Hotel investment, hotel management will help you solve everything by foc. they are the person who will be managed the 4 Stars Hotel. And they will make sure your property was well kept due they want to use it as hotel. So basically you want to resell in the market, will having high value with NO rennovation cost compare without hotel investment service apartment.

4. Able to endure Economy Crisis & Property Bubble Crisis

Hotel Investment won't be affected by property bubble crisis, because you was lease your property to developer already, there is no any risk comes from you. 

Target audience of service apartment/ condo is different. Normal Service Apartment/Condo is targeting students, worker, foreigner market.

But hotel is targeting outstation business people, tourism, which able to spend money and get ready for hotel cost, they won't because of economy crisis or bubble and stop visiting our location. Here little tips for you that prefer getting property of hotel investment which having tourism value. so the more high occupany rate of your hotel investment.

Here is a small sharing to you guy about hotel investment. Any question can just ask me by below, Thanks and have a nice day.

i still remember MH Hotel & Residence and regretted to purchase the service residence that is selling at only RM 168k back then .....

And recently there are many creative developers that will fully furnished all their unit out so that the buyer have a peace of mind to rent the unit out with a sense of interior taste.

Ronald, why regret? Share the experience...

Thank for your Feedback, Ronald. There is also some behavior and tips before u choose GRR project Ronald, Will write a new post soon how to advise u to invest in GRR. Please stay tuned on my articles.

Yes, there is alot of Fully Furnish project in the market.

By the way never trust 100% of developer for any Full furnished property unless u are getting high end residential. Here is some example :

- Yes, they are giving you full furnish without marble tiles, without plaster ceiling and any rennovation. It was look funny.

- Advise do more research on what they having full furnish, and does the design 100% exactly same as Showunits including the light, table, and more non build in item ( But mostly it won't same)

- Clarify more on getting property on ccc period or after 3 months ccc due Rennovation. Investor please calculate budjet .

Hope my advise and tips will helps, Thanks.

@ppnnkk2011 Mr Pan, I regretted that I did not make my purchase for that piece of property back then as it was Leased hold, and I went ahead to purchase another piece of freehold property in Cheras... but looking at the stability of MH hotel now, 6 to 8% rental return would still be relatively OK comparing to putting your money in Bank's FD.

@sosking717 

Hi Eric, there is this developer known as Bukit Kiara Properties where I am quite confident with their fully furnished property no matter which place they launched their project. Knowing the Tong's family life philosophy their reputation weigh more than everything else... 

@imronaldsoo Ohh, I know which project already, Baiscally i got connections to get special offer for this project too. It is really good reputation project and awesome design, price also ok.

But for the MH Hotel property u buy, i think u may put it as long term investment. Market Rental is about 4% -6% only. can get 6%-8% is a pleasure. 

@sosking717 I did not manage to purchase MH Hotel last round as i bought another property in Cheras area.....  :) 

@imronaldsoo Opps, sorry for missunderstanding.

 Let me know if u are still looking property which can enjoy 6%- 9% rental return per annum. Here i have the opportunity.

Yea, saw this concept of service apartment with Hotel too at Ipoh. Near the Sunway Tambun. If not mistaken, The Haven..

Hi Eric, 

Anymore concept of these kind of leasing service apartment currently in the market? Exisiting or new for sale. Please get in touch

@Eric

What is the psf range can investors anticipate in service apartment cum hotel investment? 

@ivyivorypeonies Hi Ivy, Yes. There is a Dual Key Concept Duplex @Tourism available. Interest?

@domng 

1st, You need to see location. Normally this kind of project there are available on Tourism Area or Business Zone like KLCC/ Malacca/Penang/ Ipoh. 

Here is the PSF advise for below location :

KLCC : RM 1500- 2000psf

Ipoh : RM 600 - RM 800 psf

Penang : RM 800 - RM 1200 psf ( Georgetown )

Johor Bahru : RM 700- RM 1000 psf

Malacca : RM 650 - RM 900 psf

@JohnL Yes, Nowsaday property investment is running these concept. Feel free can explore Airbnb. they are running in these concept too. 

@sosking717 Yes, do know about the Airbnb concept, As what I know, best western have done it in several places such as Haven and etc... Which is something like what you have mentioned but the rental rate and return is not as high as that.

@JohnL 

Yes John. There is a few thing need to study before you invest :

1. Does the location good in tourism or business traveller?

2. Does the developer having good experience on Hotel Management ?

3. Is it High Hotel Rental in surrouding area?

4. Does the hotel occupancy rate / demand high?

If all of this is positive. definately is the best choices to invest.

I wonder if AirBnB and Serviced Apartment operators will need to collect the upcoming Tourism Tax?

@domng If proper hotel lisen help you to run as hotel management, it is just rental income tax.

But If it is like airbnb u run by yourself, that is no.

owner cant keep for own stay right?

how the owner sell the unit later? 

@sosking717 

Can you please list references in Malaysia with "Service Apartment come with hotel investment concept"? thanks

@6011_3531_5354 Normally their running is like tenancy agreement concept. Owner still able to sell between the agreement, but need to sell along with the agreement to new owner. 

Just like normal property unit in KL, which their unit is tenanted. They need to sell along the tenancy agreement.

This concept agreement minimum is 3 years to 5 years per contract. 

The best packages i seen before is up to 20 years Guarantee Rental Management. But every 5 years per contract.

@sosking717 any existing completed projects as example still providing good returns for investor and still maintaining well?

@6011_3531_5354 Normally these all project existing for underconstruction project. Completed Project normally owner are earning. They are not willing to sell unless any emergency causes.

If you interested with Underconstruction. i could have few project can advise you.

Eric, where's the location?

@james_bob Hi James, Thank you for showing interest. Can u whatsapp me for more project interest and information?

+60143287302

Where is the Location? Pricing?

I am interested in one condo hotel unit in JB, entrant price around RM 1038/psf, town central, 5 minutes to CIQ. Mind to advice if this would be a good option at this point of time? Thank you 

@reenahx 

Hi Chua, are you talking about The Straits, Ramada JB?

@jdh 

Hi Bro, I have a few projects in hand with different package, location and pricing.

Kindly whatsapp me for quote you the project of investment that suit you.

Thanks

@sosking717 yes correct how do you think 

@reenahx 

That was good projects and good management.

My partner bought one unit from that project also.

Just go ahead.

@sosking717 thank you for your advice. How do you think about Wyndham group? Because this is the first time I heard of them?

Any hotel investment in Malaysia?? How about Meridin Medini ramada encore??

This is good investment??

@haur_0423 

Is  Meridin Medini ramada encore the one near to Legoland Malaysia?

Airbnb and hotel management is the future

@domng 

Yaya...how about this??

@sosking717 

Any new project & package can intro me??

@Jian Haur 

check this 

http://thlimproperty.blogspot.my/2017/09/new-project-service-suite-at-pengkalan.html

@haur_0423 

If you free, can join this seminar... got it from my agent friend.

@Jian Haur,

Sorry for late reply due busying from oversea.

JB which nearby Legoland you can invest, But need to in terms of high cash holding power up to 10 years.

Because the development not fast. so u only,will see result after 10 years or choose the projects help you do rental management for more than 10 years.

Malacca I will recommend The Apple Malacca, which new highly residence sith attractive packages, But im not sure they still available unit ornot. possible whatsapp me to check unit availability.

Thanks

@planaresidence good sharing