How does the investment market in hotel apartments present itself? An interview with Mrs. Magdalena Sidorowicz, Sales Director at Arche
SYSTEM ARCHE® IS A UNIQUE BUSINESS MODEL FOR PURCHASING HOTEL APARTMENTS. EVERY INVESTOR HAS A GUARANTEED MINIMAL YEARLY INCOME, BUT THERE IS NO LIMIT TO ANNUAL INCOME. CAN YOU PLEASE TELL US SOMETHING MORE REGARDING THIS PROJECT?
We have created a model that is the ideal solution to client’s needs. Investors trust was very important to us, because they become owners of specific hotel rooms and investment apartments. Similar models do exist on the market, especially in the West, but we have adjusted the system to meet the demands of Polish investors. First of all, we decided on very clear rules for billing and profit sharing of the entire hotel’s operations. We did not leave the most profitable bit to ourselves, they work for each owner. We lean on full transparency of financial results, where we clearly outline sources of the income and costs. Our strategy is to maintain real profits at at least guaranteed minimum of 5% of the base cost of purchase.
This is very important to investors, that they have accessible financial sources at their disposal, even in crisis situations. That is the way it was during the pandemic. Despite the lockdown of the entire industry, we paid our liabilities by the end of the year. However, real results that we have achieved are substantially greater. Hotels’ potential is very promising and profits gained are even at 12% or greater. Take July for example, the occupancy rate in our city hotels reached 90% and monthly return on investment was nearly 15%. This is why about 700 investors has put trust into Arche and within the System Arche ® we have sold over 2000 rooms. Investors are not only our clients, but they are partners as well and can take part in all operations that the company takes on. No doubt, one of our advantages is the fact that we have been present on the real estate market for 30 years, and each hotel is managed by Arche Ltd.
WHAT ARE the DIFFERENCES BETWEEN THE REAL ESTATE CONDO OWNERSHIP SYSTEM AND THE SYSTEM ARCHE®? HOW CAN ONE BECOME AN INVESTOR?
Apart from the aforementioned transparent rules, we commit to profit sharing from the operations of the entire hotel. In these we include profits from gastronomy, banquets, conferences, concerts, Spa and swimming pools. Therefore an investor isn’t confined to just earning on room rental. I need to add that these rooms are finished and fully furnished, so a few thousand zlotys for one square metre is already included in the sales price of the room. The managing aspect is left to the hotel. Additionally we focus on historic buildings, which we breathe second life into, and their value grows over time, at a quicker pace than other forms of real estate. For those that purchase a room or an investment apartment, we have created the Investors Club, which gives discounts up to 20% in all premises of our hotel chain, and for using their room, investors pay only half the price. We do not want to make money off on our client by all means. We want to deliver an interesting, profitable product, that in the end bring us all some benefits. How do you become an investor? It’s very simple, all you have to do is contact us, and we will prepare all the paper work. Everything is assured by the land and mortgage register and an indefinite real estate lease agreement.
TO WHAT DEGREE IS THE CURRENT ECONOMIC AND GEOPOLITICAL SITUATION INFLUENCING MARKET GROWTH, AND WHAT GOES WITH THAT IN RESPECT TO INVESTORS INTEREST IN APARTMENTS AND SO CALLED INVESTMENT ROOMS? ARE WE ABLE TO OBSERVE ANY SPECIFIC TENDENCIES?
Nearly every day you read that the developers and hotel markets are going through a crisis. It’s different with us. We are achieving record sales results. Without any doubt this situation is influenced by our charity work. Investors or business and individual clients – they all know, we don’t only focus on money. To a large extent we help others, and this is appreciated. We help out the Ukrainian war refugees and people socially excluded. We provide jobs for people with mental disabilities, we create space for local communities. We take care of senior citizens, who already take advantage of our travel office. Our goals are not only hotels, we also show interest in history, culture and the arts, this makes us attractive. Each of our hotels is different. Despite a somewhat difficult situation, we are continually expanding and building more hotels. We have made a few corrections and discontinue work on certain investments, shifting our sources and strengths to investments that we would like to focus on.
WHAT IS THE INVESTMENT STRATEGY FOR ARCHE IN THE UPCOMING YEARS?
Expand and revitalize historical buildings. This is our main goal. As early as next year we are opening the Arche Airplane Factory in Mielno, and the Arche Sanatorium for Militia in Nałęczow. Then the Arche Monastery in Wrocław and Arche Metal Works in Muszyna. We have already purchased next, very interesting properties, for example the Szombierki Power Station in Bytom, but because of the economic situation in Poland, these revitalization projects will have to wait a little while longer.
Magdalena Sidorowicz has been involved in the development and investment market for over a decade. For her, nothing is impossible. The real estate market and investment consulting have become her great passion. She likes especially revitalized projects, objects with soul and real estates with history in the background. Magdalena Sidorowicz has been working for Arche for 5 years. She’s a co-author of the Arche® System investment. On a daily basis she is a fulfilled mother of two daughters, the owner of a miniature schnauzer named Rolka. In life, she values truthfulness, diligence, peace, traveling and she’s facing new challenges. Always smiling, optimistic about the future. Zodiacal Aries, stubborn. A graduate of the Warsaw School of Economics, the Faculty of Management and Marketing and postgraduate studies at the Military University of Technology, in the field of Real Estate Brokerage and Management.
Last Updated on September 26, 2022 by Anastazja Lach