Philippines property portal MyProperty.ph says short-term rental sites such as Airbnb are the reason condotels are becoming more attractive to investors, reports the Manila Times.
Condotels are condominiums which are used as short-terms stays for guests and are popular among travelers who seek alternatives to traditional hotels.
Portal MyProperty.ph, which is a listing site specialising in properties for sale and rent, including condotels, says investors are starting to purchase the units to capitalise on the short-term rental economy boom.
"The main advantage of owning a condotel unit is its ability to generate passive income," MyProperty.ph told The Manila Times. "Depending on its location and season of the year, it can potentially earn a lot of money.”
Condotel units are typically individually owned and included in a property management program, with the manager handling renting-out of the unit (along with regular building management and maintenance services) and retaining a percentage of the rental income as payment for services.
Their attraction to investors is also influenced by burgeoning tourist growth in the Philipines, with arrivals surpassing 600,000 in January of this year, about ten percent more than in the same month last year, is one factor that makes condotels a potentially lucrative investment, the online listing service added, particularly in peak seasons.