Condotel rental income up 11%

CEBU, Philippines - A condotel development of listed firm Filinvest Land, Inc has posted a year to date growth rate of 11 percent of rental income distribution to its unit owners.

Karen Mendoza, executive assistant manager of Quest Hotel and Conference Center, reported that the city hotel's total rental income as of September 30 this year reached P73.1 million, a P7.3 million increase compared to last year's P65.8 million.

In a media briefing Tuesday, Mendoza attributed the increase to the 10 percent growth rate on year-on-year occupancy which is mainly driven by corporate accounts and the business process outsourcing market.

"The domestic (the Filipinos) is still our top market, followed by Koreans, Europeans and Japanese," she said.

As of third quarter this year, the official also noted, the hotel's occupancy rate reached 81 percent, up from 67 percent in the same period last year.

The manager further explained that the hike of corporate meetings and BPO customers have contributed to the overall rental income output and high average occupancy performance.

According to Financial Controller Darose Daarol, the company's average rental income recorded during the third quarter of this year was P54,000.

Condotel investors have benefited the growth of their investment through the quarterly rental income share, Mendoza added, noting the income is being distributed to each unit owner on a quarterly basis.

She said: "We're optimistic to close the year with a positive growth rate."

The hotel firm had a total revenue of P200 million last year; this year, it is targeting to achieve the P236 million target forecast.

In addition, condotel is a trend in the hotel industry specifically in second home ownership and is operated by an in-house hotel management operator. — (FREEMAN)

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