Buying a $2,000,000 vacation home can be enticing and allow owners to create wonderful experiences, at least for a few weeks a year. Many people think paying millions on an overpriced property with added facilities is a worthwhile investment, the cherry on top being a 5% ROI.
With low barriers to entry, new resorts pop up globally giving consumers a choice of impressive resorts in exotic places. Unfortunately they are all offering the same thing, just in different places.
Despite this, buyers like owning a luxurious property in a resort location and will pay a hefty premium for it, but while these buyers are not price-sensitive, they demand more “value” from their money.
Most developers translate “value” as a need for more amenities, while the more progressive engage reciprocal exchanges at other resorts.
However, one company did something unique.
O Lifestyle, a Luxembourg-based group of hotel and hospitality interests has launched the “O” brand, a new opportunity combining the best facets of the hotel, real estate and private aviation industries while eliminating their worst flaws.
While O Hotels offers luxurious hotel and resort environments in prime locations, look closer and you find a considerable inventory of exquisite branded residences.
Buyers purchase a condo, villa, suite or unique floating villa. They use it when they want without limitation, and when they don’t O rents it out as part of their hotel inventory to discerning guests.
Whereas other developers add value by creating more useable amenities when owners are in residence, O went the other way, adding value for owners when they’re not there, which is most of the time.
Residence owners are busy people juggling work or personal obligations and O recognized those who can afford a $2,000,000 vacation property are also those who cannot afford to spend as much time taking holidays as they would like.
So O added value to the property when buyers are NOT there. How?
Well, when owners are not using their residence, O rents it as part of their hotel inventory, but in this case they don’t give owners any of that income. Instead of a 5% ROI O does something new, giving owners 0%.
The Rub? O lets every residence owner use its proprietary fleet of private aircraft effectively at no cost.
While O develops and operates hotels and branded residences, it also owns an impressive fleet of private jets operated exclusively for its residence owners, club members and hotel guests.
And while club members or hotel guests have access to these aircraft at advantageous pricing (up to 50% below commercial charter rates), the O Hotel Management Program allows residence owners to use any of their light, mid or super-mid jets for up to 40 hours a year, effectively for free. No credit card required.
The less owners use their residence, the more free flight hours they have available to fly anywhere in Europe. This provides them with flight hours which would traditionally cost up to 250,000EUR a year through charter or jet card programs and which equates to an effective 17% ROI for owners.
The proposition is sound. Why buy a 2,000,000EUR house you’ll only use a few weeks a year and then spend another 250,000EUR on jet cards or charter flights when you can do both for free?
Additional perks include free access to a fleet of yachts, free reciprocal use of other O locations, international concierge services and several programs to underwrite your property’s worth.
With unique developments currently engaged in Greece, O will expand throughout Europe, the USA, and the Caribbean in 2023.
For more information www.o-lifestyle.com