Branded Villa Management: an alternative to Luxury Condominiums, Offering Peace of Mind and Value Creation for Villa Owners
Buying a dream home in the Caribbean is a goal for many high net worth individuals. After all, why not? The idea of being able to visit your own second home when you want, in an idyllic climate, on one of the best beaches in the world, and having your own private piece of paradise does sound appealing and many do take this step. Others don’t, due to concerns such as the safety and security of your valuable asset while you are gone, maintenance and upkeep and high operating costs, all for an average 4 – 6 week personal use period per annum! The alternative is the purchase of a luxury condo unit within a managed condo hotel where all of the amenities and day-to-day worries of home ownership are taken away, and for the better-managed developments, this can actually provide a return on investment. The issue with a condo hotel, and we speak from experience, is that they are often very public spaces where privacy and space is limited. Bringing the extended family often means renting a second suite or simply overcrowding.
Owners of private villas can also opt to go down the road of handing management control over to local property managers who, for a fee, arrange rentals and provide a level of maintenance and security. This is the typical arrangement seen in Turks and Caicos and elsewhere throughout the Caribbean. This can work out well, but some villa owners will admit that results are inconsistent, which in turn can jeopardize the value of the investment. It is quite well known that re-sale pricing for villas is closely correlated with rental income and level of maintenance, so for any purchaser of this type of luxury product who intends to offset their costs with rental income, the choice of manager is a critical consideration.
Now there is an alternative that blends the advantages of both the condo hotel and private villas. “Branded” villa management is a fast growing trend in the Caribbean. Many upscale tourist locations are now providing this product, via mainstream names such as Four Seasons, Banyan Tree and Oman Hotels, and villa owners are enjoying the peace and security of knowing that the reach, consistency and reputation of these brands result in high maintenance and security standards, consistent service for their guests, higher occupancy and revenue generation, and equally importantly, creates value enhancement. Recent studies suggest prices for this class of property attract a premium of 10% to 25% over non-branded villas.
In creating a turnkey solution for purchasers at “The Dunes”, that in turn would preserve and enhance value, we carefully selected Grace Bay Resorts, the premium brand in Turks and Caicos, as the Dunes manager. GBR shares our vision that this approach is the way forward and a natural progression for owners and guests who have enjoyed the benefits of their internationally acclaimed services. We believe the market for this product will be wide and we are confident that this partnership will result in a unique and powerful statement that will re-define the meaning of villa ownership and operation in Turks and Caicos.
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