InformatIon GuIde Cana rock rental Pool

Transcription

1 Information Guide Cana Rock Rental Pool

2

3 FREQUENTLY ASKED QUESTIONS WHAT IS A CONDO-HOTEL? WHO ADMINISTERS THE RENTAL POOL PROGRAM? WHAT ARE THE BENEFITS OF THE PROGRAM? IS PARTICIPATION IN THE RENTAL POOL PROGRAM MANDATORY? WHAT HAPPENS WHEN THE OWNER WANTS TO USE HIS UNIT? WHAT HAPPENS IF AN OWNER INVITES A FRIEND OR A RELATIVE TO STAY IN HIS UNIT? WHAT HAPPENS IF THE OWNER WISHES TO USE HIS UNIT BUT IT HAS ALREADY BEEN RENTED OR RESERVED? CAN THE UNIT S DÉCOR BE CHANGED? WHAT IS THE RENTAL INCOME EARNED BY THE OWNER? How will the Administration pay my yearly rent? WHY IS RENTAL POOL INCOME FIXED AND NOT VARIABLE DURING THE FIRST THREE YEARS OF OPERATION? DOES CANA BAY SALES & RENTALS OFFER VARIABLE RENTAL MANAGEMENT ALTERNATIVES? WHAT IS THE DURATION OF THE RENTAL POOL AGREEMENT? CAN I SELL MY UNIT UNDER THE RENTAL POOL AGREEMENT? WHO IS RESPONSIBLE FOR THE UNIT S FURNITURE AND EQUIPMENT? UNIT S EQUIPMENT GENERAL REQUIREMENTS living area bedrooms bathrooms kitchen terrace KEY POINTS IN OUR MARKETING PLAN GENERAL OBJECTIVES OUR STRENGTHS action plan

4 Frequently Asked Questions 1.1. What is a Condo-Hotel? A Condo Hotel is a residential building that functions as a hotel, but which at the same time offers the economic and legal advantages of real estate. The Owners have the opportunity of investing in a boutique hotel, generating rental income, while getting the benefits from the appreciating value of their properties. The Rental Pool program allows the Owner of a unit to rent his unit through the resort administration, which will be in charge of marketing, reservations, reception services and everything related to the maintenance of the property. In return, the administration will pay the Owner a fixed rent for use of their Unit WHO administers the rental pool program? The Cana Rock Condominium Hotel will be administered by Cana Bay, SLR Sales & Rental Division (the Administration ), on the basis of long-term contracts with the property Owners. The hotel management structure will be that of a boutique hotel under its umbrella. The properties that will be in the Rental Pool will benefit from a global reservations system and association with the broader Cana Bay Beach Club & Golf Resort what are the benefits of the program? The most important benefit is ownership of a property free from complications and guaranteed rental income for up to three years. All maintenance and conservation tasks are tended to by the Administration. The property generates rental income for the first three years of ownership. Guests staying in units of the Cana Rock Condo Hotel will be able to enjoy all the usual services of a boutique hotel, such as reception, concierge, bell boys, cleaning services, Wi-Fi, cable TV and whatever else is necessary to offer a unique experience is participation in the rental pool program mandatory? Participation is solely at the Owner s discretion. The Owner can join now for a minimum period of 1 year, cancellable at any time with 6 months notice. In the event of cancellation, the Owner is required to honor all existing bookings and terms and conditions of the Rental Agreement until the departure of those reservations.

5 1.5. what happens when the owner wants to use his unit? An Owner who participates in the Rental Pool can book the use of his unit in the dates of his choosing, assuming that Cana Rock has availability of his unit type (Bass, Drums, or Guitar) for the dates selected. Subject to availability, each owner shall be able to book 2 weeks a year (minimum stay of 7 nights) in the Cana Rock Condo Hotel directly through Cana Bay Sales & Rental at a 30% discount to the units then-current market rate. After the second week, Owners will be able to book additional weeks (minimum stay of 7 nights) in the Cana Rock Condo Hotel directly through Cana Bay Sales & Rental at a 20% discount to the units then-current market rate. These discounts are subject to black-out dates that include 1. Easter Week (Sunday to Sunday, inclusive) 2. Thanksgiving Week (Sunday to Sunday, inclusive) and 3. Christmas and New Year s (December 23 through January 3). Owners can always book stays shorter than 7 nights at the units thencurrent market rate what happens if an owner invites a friend or a relative to stay in his unit? Relatives and friends shall be treated the same as the Property Owners. Every Owner must book the unit and notify the Administration in writing every time he desires to make his property available to a relative or a friend What happens if the Owner wishes to use his unit but it has already been rented or reserved? In case an Owner wishes to use his property but it has already been rented or reserved, the Owner shall be lodged in a unit similar to his. If there are no similar units available, the Owner may elect to be lodged in any available Condo Hotel unit (priced at the Owner discount, if applicable). The Cana Rock Condo Hotel cannot guarantee availability can the unit s decor be changed? The units under the Rental Pool Agreement must be furnished with the authorized Rental Pool furniture and equipment package. For the purposes of keeping a consistent brand standard and consistent experience for all the guests, all the Owners that opt to participate in the Rental Pool must respect the established standards during such times as their units are under contract. If the Owner wishes to add decorative elements, these must be approved beforehand by the Administration.

6 1.9. What is the rental income earned by the Owner? During the first three years of Condo Hotel operations, owners who execute a Rental Pool Agreement and deliver their unit to the Administration will earn a fixed yearly rent of 6% of the cost of their unit and furniture and equipment package (excluding external closing costs, legal fees, and taxes). Payments to Owners will be made quarterly. Below please find an illustrative example (in US Dollars): UNIT TYPE BASE PRICE (1) FURNITURE PACKAGE TOTAL PRICE YEARLY INCOME (6%) BASS (First Floor) $164,900 $28,000 $192,900 $11,574 DRUMS (Second Floor) $154,900 $25,000 $179,900 $10,794 GUITAR (Third Floor) $189,900 $30,000 $219,900 $13,194 (1) Base price excludes any third-party closing costs, legal fees or taxes. After the initial three-year period, Owners representing the Cana Rock Condominium Association and/or Owners representing the majority of Rental Pool participants will have the opportunity to renegotiate the terms of the Rental Pool Agreement with the Administration. There is no guarantee that the Rental Pool will continue after the initial three-year period. Income generated by any subsequent Rental Pool agreement may be fixed or variable in nature.

7 1.10. How will the Administration pay my yearly rent? The Administration will pay rent to Owners on a quarterly basis (starting 3 months after the delivery of the unit into the Rental Pool). The Administration will deduct from this rent the monthly condominium maintenance fees (currently estimated at $140 a month) and any payment due to the Administration for the use of the owner s Cana Rock unit. Once established, the Cana Rock Condominium Association (Owners) will determine the condominium s expenses and monthly maintenance fees. The developers of Cana Rock has negotiated a fixed rent Rental Pool option on behalf of all future Cana Rock Owners. Participation in the rental pool is not mandatory. Cana Bay Sales & Rental has variable rental management programs that may better suit certain Owners needs. Please refer to question Does Cana Bay Sales & Rentals offer different rental management alternatives? Why is rental pool income fixed and not variable during the first three years of operation? New hotels usually take several years to ramp up performance after opening and reach levels of occupancy and comparable revenue per available room (RevPAR) to the levels of incumbent hotels in their market. Independent hotels usually take substantially longer than branded properties to reach the RevPAR performance of existing hotels.

8 1.12. Does Cana Bay Sales & Rentals offer other rental management alternatives? The fixed income Rental Pool program limits an Owner s ability to freely use his unit during the term of the Rental Pool contract. Owners will be able to book stays longer than one week at a 30% or 20% discount (subject to blackout dates). If an Owner wishes to use their unit for frequent shorter stays or for several months a year, Cana Bay Sales & Rental has different rental management programs that may be better suited for an Owner s occasional or seasonal rental needs. Cana Bay Sales & Rentals will also help owners find long-term renters and/or market their property for sale. While we provide a brief summary of the different short term vacation rental programs below, we encourage you to reach out to Cana Bay Sales & Rental to discuss specifics: Responsibility Table: Short Term Vacation Rental Programs (30 days or less) Owner Managed Rental Management Program CANA BAY S&R FLEXIBLE RENTAL MANAGEMENT Furniture and Equipment Owners Discretion Owners Discretion Cana Bay Sales & Rental Commission N/A 20% of net booking revenue (after travel agency commissions) CANA ROCK RENTAL POOL PROGRAM Mandatory Furniture and Equipment Package N/A Rental Income Variable Variable Fixed 6% a Year Cana Bay Resort Fee (1) $5 per person/ day Cana Bay S&R Cana Bay S&R Bookings and Reservations Owner Cana Bay S&R Cana Bay S&R Unit Cleaning / Amenities Owner Cana Bay S&R Cana Bay S&R Equipment Maintenance / Replacement Owner Owner Cana Bay S&R Furniture Damage Owner Owner Cana Bay S&R Utilities (Electricity / Internet / Cable / Phone) Owner Owner Cana Bay S&R Monthly Condo Fees Owner Owner Owner Normal Wear and Tear Owner Owner Owner Taxes (If Any) (2) Owner Owner Owner (1) For long term renters (more than 1 month) and owners, Cana Bay resort fees are included in a unit s monthly maintenance charges. Due to their higher usage, short term renters are charged a daily resort fee that includes registration with security, access to the Cana Bay Beach Club, access to the Cana Bay Racquet Club (court fees apply), Wi-Fi internet access in public areas, beach and pool towel service, access to concierge for paid services. (2) Cana Rock Owners should benefit from CONFOTUR, a law that initially exempts real estate projects in touristic areas from transfer taxes and property taxes. Cana Bay, SLR does not provide tax advice. Please review all tax related matters with your tax advisor.

9 and terms and conditions of the Rental Agreement until the departure of those reservations Who is responsible for the Unit s furniture and equipment? Standardization of equipment and furnishings is important in order for the Administration to manage the replacement of lost or damaged items. Cana Bay Sales and Rentals will return the unit to the Owner in the same condition as it was delivered, other than normal wear & tear. If there is extraordinary damage or if Cana Bay Condo Hotel guests remove towels, utensils, or any other Unit property, Cana Bay Sales & Rentals will charge the guest and replace the items What is the duration of the Rental Pool Agreement? The Rental Pool Agreement is structured for an initial period of three years from the date the first Cana Rock units are delivered into the Rental Pool Program Can I sell my Unit under the Rental Pool Agreement? When an Owner sells his unit, the buyer receives the benefits and must assume the obligations under the Rental Pool Agreement. Either the seller or the buyer may terminate the Rental Pool Agreement with six months notice. The new owner is required to honor all existing bookings

10 UNIT S equipment To join our Rental Pool program each unit must comply with our high standards of style and comfort. Our approved furniture and equipment package will include: general Requirements LIVING AREA Internet, cable, and telephone service Decorative elements Wall art Iron and Ironing board CO2 Fire Extinguisher Standing Mirror Sofa Bed (Double) Chairs Media Console Coffee Table Side Tables Dining Room Table and 6 Chairs LCD Television in Living Room Blu-ray/DVD Player in Living Room

11 BEDROOMS Queen Bed in Master Bedroom Full Bed with trundle in Second Bedroom Bed frames with casters for all beds Fixed head boards for all beds Bed-set: Bedspread, Coverlet, Ornamental Pillows, Bed-skirt, and Mattress Pad per Bed 2 Set of Sheets for All Beds and Sofa Beds 2 Pillows in Master Bedroom, 2 Pillows in Second Bedroom, 2 Extra Pillows Night Tables (2 for Master Bedroom, 2 for Second Bedroom) Night / Table Lights (2 for Master Bedroom, 2 for Second Bedroom) Area rugs Wooden clothes hangers LCD Television in Master Bedroom Safety Deposit Box in Master Bedroom IPod Dock/Radio/Clock 2 Golf Umbrellas (Cana Bay / Cana Rock Branded) Telephone bathrooms 6 Bath Towels 6 Hand Towels 6 Face Towels Hair Dryer Soap Dispenser 2 Toothbrush Glasses Mirror Waste Basket Shower Curtain and Liner Floor Mat

12 kitchen Required Kitchen Appliances Toaster Blender Juicer (Manual) Coffee Maker (8 Servings or More) Tea Pot Coffee Set (Creamer, Sugar Holder) 6 Coffee / Tea Mugs 6 Water Glasses 6 Juice Glasses 6 Red Wine Glasses 6 White/Sparkling Glasses 6 Salad/Dessert Plates 6 Soup Bowls 6 Dinner Plates 6 Dinner Forks 6 Salad/Dessert Forks 6 Dinner Knives 6 Steak Knives 6 Butter Knives 6 Soup Spoons 6 Dessert Spoons 6 Tea Spoons 1 Salad Bowl 2 Medium Bowls 4 Ice Cube Trays 1 Ice Cube 1 Ice Tongs 1 Serving Tray 1 Corkscrew 1 Bottle opener 1 Can opener 1 Set of Kitchen Knives 1 Set of Cooking Utensils (Spoons, Spatulas, Forks, etc.) 1 Salad Bowl Serving Set 1 Frying Pan 10 1 Frying Pan Quart Sauce Pan with Cover 1 4 Quart Sauce Pan with Cover 1 2 Quart Sauce Pan with Cover 1 Large Cauldron with Cover 1 Medium Cauldron with Cover 2 Ladles (Pouring Spoons) 1 Egg Spatula 1 Garbage Bin with Cover and Plastic Liner 1 Large Pasta Strainer 1 Paper Towel Holder

13 terrace BASS CONDO 2 chaise lounges Outdoor Table and 2 Chairs DRUMS CONDO Outdoor Table and 2 Chairs Outdoor Table and 2 Armchairs GUITAR CONDO 2 chaise lounges Outdoor Table and 4 Chairs Jacuzzi Barbecue

14 Key Points in Our Marketing Plan 3.1. general objectives Making the Condo Hotel known at the national and international levels Optimizing occupancy, empowering us in diverse relevant markets Standardizing service levels in order to maintain favorable reviews online Increase and publicize the services and attractions offered within Cana Bay Beach Club & Golf Resort and Bávaro/Punta Cana 3.2. our strengths One of the few professionally managed Condo Hotels in Punta Cana within the confines of a gated resort community Evagrio Sánchez, President of Cana Bay, SLR, was Director of the Americas for Meliá Hotels from 1989 to Developed the Paradisus Punta Cana and Cocotal Golf and Country Club, among other properties in the Bávaro/ Punta Cana area 2. Developed the Gran Meliá Cancun and Gran Meliá Caracas, among many other hotels in the Americas Beach Club and Racquet Club access (tennis and paddle) Hard Rock Hotel: Casino and Oro Nightclub access (subject to change at the Hard Rock Hotel s discretion) Preferential access to Hard Rock Golf Club at Cana Bay Less than 18 miles (28 kilometers) from Punta Cana International Airport

15 3.3. action plan Creation of a web page dedicated to the Condo-Hotel and direct booking platform Partnerships with select Online Travel Agencies and Tour Operators Publishing of promotional material Active social media presence and customer relationship management plan