Resort property market needs breakthroughs

Mauro Gasparotti, Directors of Savills Hotels in Asia-Pacific, said that in comparison to investment in traditional hotels, current resort property models provide more benefits to both property developers and secondary investors. Instead of spending money, which is mainly from taking loans, to develop traditional hotels, with property resort model, developers can take revenue generated from apartments and villas to develop the whole projects, and even use profits from apartment and villa sales to build additional hotel sector, without the need of taking banking loans. However, this model also has risk regarding of operation and management. Accordingly, profit yield spectrum will depend on market conditions and managing unit’s ability.