By Francis Anthony T. Valentin
BOUTIQUE property developer C-5 Mansions Development Corp. signed a memorandum of agreement (MoA) with Novel Residential Concepts, Inc. last Oct. 11 for the sale of and long-term lease arrangement for the soon-to-open Aspen Hotel in Taguig City.
The hotel, which will be managed by Novel, will occupy several floors (14th to 19th plus the lobby on the 2nd floor) of Ridgewood Towers Premier.
The high-rise condominium of C-5 Mansions is located on Circumferential Road 5, across the embassies of United Kingdom and South Korea, and a short drive from Bonifacio Global City (BGC). The building is under construction.
“Currently, the long stretch of the main C-5 Road from the South Luzon Expressway side in Taguig City all the way to BGC up to the Quezon City side hardly hosts any hotels for the convenience of tourists and business travelers,” Roberto Alvarez, Jr., president of Novel, said in a statement.
“Aspen Hotel obviously fills a big gap in the market and will cater to businessmen, expatriates and Filipino families starting in 2022,” Mr. Alvarez said.
The hotel will have a total of 186 one- and two-bedroom units. It will also feature such amenities as a lap pool, gym, play room, private theater, and sky garden.
At the MoA signing event, Mr. Alvarez said they are viable at P3.500 a night, given the hotel’s strategic location.
“While of course the daily rate may change depending on the market conditions once we start operating in 2022, we are confident that our target market will enjoy the premium affordability of Aspen Hotel vis-à-vis other hotel operators in and near BGC,” Mr. Alvarez said.
“Assuming there’s a change in market, assuming that there’s a glut, the tendency of people is to go to the more practical choices, and we will be that,” he said.
C-5 Mansions and Novel are offering all 186 units of Aspen Hotel to long-term investors starting at P3.5 million, a figure that includes the unit price, fit-out costs, title transfer and miscellaneous fees. A two-bedroom unit is being offered for P6.8 million.
Under the agreement the two companies have entered into, all units will be fitted out and leased out upon their turnover to Novel.
The companies guarantee investors that they will earn a minimum 6% per annum rental rate based on the total unit cost, which will be paid out semiannually. They will earn more if Aspen Hotel achieves high occupancy rates.
“We would be able to offer these rooms at a very low day tariff and that would ensure that we have very good occupancy,” Alfonso Keh, Jr., general manager of C-5 Mansions, said during the MoA signing.
“Given that fixed bank time deposit interest rates are hovering at around 4%, we believe that our offering of a guaranteed rate plus our initiative of bonus rates after a strict occupancy auditing process makes Aspen Hotel a strong case for investors to stay way ahead of inflation,” Mr. Alvarez said.