US hotel group Hyatt is building its five-star Hyatt Regency Lisbon apartments in the capital’s Belém district.
The €70 million project comprises apartments that can be bought by investors and rented out by the hotel chain to overseas tourists. In exchange, the apartment owners get a guaranteed 3% on their investment.
The Hyatt Regency Lisbon is in Belém, next door to the Lisbon Congress Centre (former FIL). The 200-apartment project is a partnership between Hyatt, Fibeira and Realtejo, a subsidiary of United Investments Portugal (UIP) which owns Pine Cliffs in Albufeira and Sheraton Cascais.
The aparthotel will be managed by UIP for 10 years guaranteeing the owners a minimum return of 3% per annum regardless of whether it is rented out or not.
At the end of this period, the monthly return received by the owners will continue but only in line with the actual take-up rate from tourists.
This hybrid form of combining a luxury aparthotel owned by investors and rented out to tourists “combines the tangible asset of property investment with worry-free financial investment since the apartments will be managed by UIP”, says Daniel Correia, UIP’s Real Estate General Manager, in an interview with ECO.
The investors can live in their apartments for free for up to four weeks a year, with the right to stay for only one week during peak season in July and August.
So far, over 30% of the 200 apartments have been sold and 20% reserved, with total sales so far amounting to around €50 million. From those already purchased, €35 million came from overseas investors (65%), particularly from the South America, Asia and Middle East, namely Brazilians, Chinese, Turks and Iranians.
In terms of prices, the Hyatt Apartments cost nearly €1 million. A one-bedroom starts at €685,000-€920,000, while a two-bed starts at €890,000-€1.5 million. A three-bed apartment will set the investor back €2.5 million.
These amounts are attractive for overseas investors who have applied for authorisation for residency through investment (Golden Visa) which requires a minimum investment of €500,000, as the Hyatt mentions on its site.
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