Jonathan van Jaarsveldt of Lew Geffen Sotheby’s International Realty, responsible for marketing the new development, says that the Hotel, which is expected to be completed by December 2008, will be the first 5 star, international brand hotel in Nelson Mandela Bay.

“The Hotel will boast 173 sea-facing suites and glass-enhanced architecture that will offer unparalleled views. All suites will be fitted with the latest 5-star accessories, and each will provide effortless luxury,” he says.

20% of the gross Hotel revenue (before expenses), including revenues generated by the Hotel’s spa, conferencing facilities, restaurants and retail sector, will be paid out to investors each quarter.  Returns are pooled and calculated on a pro rata basis for each suite type.

“Investors will receive a guaranteed minimum Return on Investment of 8% for the first two years, and 7.5% for years 3 to 15, which will be underwritten by FNB International Banking.  The investment is financially viable with occupancies as low as 45%.  Given the likelihood of powerful word-of-mouth marketing and promotion by the network of investors, high occupancy levels and premium prices can be expected, and returns could exceed 16% per annum,” says van Jaarsveldt.

Owners will not be charged any levies, rates, taxes or other costs associated with property ownership.  Nor will owners be burdened with the cost of refurbishment or maintenance.

In addition owners are entitled to write off 5% of the value of their investment against other taxable income from property as part of the DTI’s tourism investment incentives.

By purchasing a sectional title suite at the Radisson Port Elizabeth, owners will be entitled to 28 days’ free usage of their respective suite per calendar year. 

“The purchase price also includes a ten year membership to The Registry Collection,” notes van Jaarsveldt. “This membership allows the investor to bank or swap his/her 28 free days at the Radisson Port Elizabeth for time at any one of the Registry Collection’s 110 elite leisure properties around the world.”  In South Africa these include exclusive resorts like Pezula, Zimbali and The Colosseum Private Residence Club in Cape Town.

Luxury Suites at the Radisson Port Elizabeth will cost R2,05 million, which includes VAT, transfer costs, and bond registration costs.