Time to check in to Bulgaria´s happening hotel sector

by Charlotte Ashton Bulgaria

 

Despite concerns that EU member state Bulgaria is succumbing to the negative effects of the economic recession along with its other CEE neighbours, recent reports indicate an 8.4% increase in tourist revenue in 2008 (NSI Bulgaria), giving investors hope that the country´s hotel sector could be a ticket out of the downturn for 2009.
 
There are now over 3200 hotels, hostels and lodgings across Bulgaria, offering a total of 130,000 rooms, which is a 7.3% growth compared to 2007 figures. Over 120 new hotels opened last year, the majority of which were located in cities such as the capital, Sofia and second city, Plovdiv and along the popular Black Sea coast in towns such as Bourgas and Varna.
 
And it would seem that demand for accommodation, not only from foreign visitors but also Bulgarian nationals, is expected to remain stable in 2009. According to the Chairman of the Bulgarian Hotel & Restaurant Association hotels in the southern towns of Velingrad, Sandanski and Zlatograd have been full during this winter season as Bulgarians seek ski and spa breaks and hopes remain high for the impending summer season.
 
Nearly €4 billion is expected to be generated in Bulgaria during the 2009 tourist season according to the Head of the Bulgarian Institute for Analysis and Evaluation of Tourist Business, half from foreign visitors and the other from nationals encouraged to take domestic holidays. But the government is not leaving anything to chance with an 8 million leva (approx EUR 4 million) domestic and international advertising campaign planned by the State Tourism Agency to promote Bulgarian tourism in 2009.
 
Joseph Upchurch, MD of overseas property developer Aston Lloyd, comments,
 
"The reported increase in tourism revenue, new accommodation and plans to promote this wonderfully diverse European country is very encouraging. Bulgaria holds such a wide appeal from families seeking summer holidays on the Black Sea coast to winter sports enthusiasts taking advantage of the ski slopes in Vitosha National Park, to business tourists visiting Sofia.
 
"Aside from its rich culture and varied landscape, one of the key appeals of visiting Bulgaria is its affordability. According to the recent Post Office Travel Services Holiday Money Report, Bulgaria ranked the seventh cheapest place to holiday, three places ahead of perennial favourite Spain, and these real savings are becoming increasingly important to travellers and investors alike."
 
Notably absent from Bulgaria´s hotel scene are the large Western chains seen in most countries around the world. Love them or hate them, the type of accommodation offered by such operations remains reliable and popular, especially with the business community and now four of the world´s top hotel brands are reported to be entering the Sofia market. Despite the current financial landscape, Marriott, Hyatt, Movenpick and Intercontinental have all expressed interest in Bulgaria with the view of securing a foothold in the market now for future growth.
 
But it is not only these companies who have identified opportunity. Property development company Aston Lloyd & Partners International recently launched the Aston Hotel Sofia located in Kostinbrod, just 15 minutes from Sofia City. This 4 star boutique hotel complex boasts 52 beautifully designed en-suite bedrooms and six suites as well as a restaurant, stylish bars, swimming pool, fitness facilities and a 400 capacity conference centre.
 
Joseph Upchurch comments, "The major international hotel groups in Sofia are currently not able to meet demand.  In particular, there is a real lack of conferencing and business facilities. The Aston Hotel Sofia will have 400 capacity conferencing facilities that will well and truly meet this demand…so the hotel not only offers a considerable yield for minimal risk (particularly in today’s market); it’s an affordable and simple lifetime investment.”
 
 
Aston Lloyd is welcoming investment in this project from just €10,000 for en-suite bedrooms and €14,000 for suites. The hotel initiative offers investors 28 days per year of potential room income, earning 50% of the revenue from the allocated room; Aston Lloyd is guaranteeing a 6% yield in the first year and those that are eligible for a SIPP could also get up to 40% cash back.
 
The project has already attracted some high-profile investors, including WBC super middle weight world champion, Carl Froch, and Ring Magazine light heavy weight champion boxer, Joe Calzaghe CBE. Both have bought into the Aston Hotel Sofia as a means of expanding their existing property portfolios and profiting from the thriving city.
 
For more information about Bulgarian hotel investment please call Aston Lloyd on 0845 260 0646 or visit www.astonlloyd.co.uk.

Burgeoning business tourism spells success for Sofia…

by Charlotte Ashton Bulgaria

The motto ‘Ever Growing, Never Ageing’ is rather apt for Sofia, Bulgaria’s capital city. In recent years the city has seen a huge growth in popularity, not only as a tourist destination but also as a business centre, with more and more companies capitalising on the fact that Bulgaria sits outside of the eurozone, with a strong exchange rate and a thriving business environment.

Sofia Airport, one of the fastest growing airports in Europe, reported that in 2007 its air traffic had doubled over the previous five years. With more direct flights from most European capitals and a growing demand for larger planes and passengers, the airport has built a new Terminal 2 and expanded its runway. This, along with the €105m city metro investment by the European Investment Bank, means doing business in this thriving city is easier than ever.
The future of Sofia is looking bright, fuelled by further investments from large multinational companies including Coca Cola (who has a factory in Kostinbrod) and Kraft Foods (with a coffee plant in the same region). Statistics from the Economist Intelligence Unit reported that an average business person visiting Sofia is likely to spend 10 times more (at €184 a day) than a regular tourist. This is believed to be further boosted by the significant growth of the conference and exhibition industry in the city.
All the above factors are turning property developments, such as hotels, into big business. Revenue per available room (revPAR) across Europe in 2007 grew 6.6%, which in turn, has resulted in increased interest from businesses in Sofia who urgently need corporate facilities, as Joseph Upchurch, Managing Director of property development company, Aston Lloyd, explains:
“The major international hotel groups in Sofia are currently not able to meet demand. In particular, there is a real lack of conferencing and business facilities to satisfy the market now and in the future.”
It is for this reason, coupled with the region’s strengthening economy, that Aston Lloyd has brought the Aston Hotel Sofia to the market. The 400-seated conference complex is expected to capitalise on both the need for high quality conferencing facilities and the growth in business tourism in the city – which in turn, will increase the need for suitable accommodation.
This off-plan development offers buyers the opportunity to earn rental income by investing in either a hotel room or suite in the four-star boutique luxury hotel.
Despite the down-turn of the UK property market, emerging markets such as Bulgaria enjoyed property price increases of between 15-20% in 2008. Statistics such as this have lead Aston Lloyd to confidently guarantee a 6% yield for investors in the Aston Hotel Sofia in the first year, although the company claims this is “conservative” and are expecting the yield to be upward of 11% based on strong research on occupancy rates. Investors in the development may also be eligible to include in their SIPP, which could see some investors getting up to 40% of their money back.
                                                                          
Joseph Upchurch recognised the concerns of investors and introduced The Aston Hotel Sofia in response to the demands of the current and future market:
“Regardless of the negativity surrounding the current economic climate, it is possible to make money in these turbulent times.
The market was screaming for a low-entry level investment opportunity that allows buyers to enjoy the rewards of both rental income and real capital growth – this is why we are guaranteeing a 6% return in the first 12 months. We’re confident in our research and the returns.”
The project has already attracted some high-profile investors, including WBC super middle weight world champion, Carl Froch, and Ring Magazine light heavy weight champion boxer, Joe Calzaghe CBE. Both have bought into the Aston Hotel Sofia as a means of expanding their existing property portfolios and profiting from the thriving city.
Entry-level investment for the hotel starts at €3,500 for en-suite bedrooms and €4,900 for suites. For more information call Aston Lloyd on 0845 260 0646 to speak to an experienced property investment consultant. Alternatively, visit www.astonlloyd.co.uk.
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About Aston Lloyd and Partners International:
Aston Lloyd and Partners International is a leading global property development and investment company specialising in the emerging markets. Led by a team with over 30 years of experience in property investment, Aston Lloyd helps investors benefit from the significant capital growth that exists in global emerging markets like Central and Eastern Europe. They aim to deliver a wide range of services to clients, providing off-plan investments, sourcing sites and managing the build process.

Invest in a slice of Sofia as Bulgaria soars from strength to strength…

by Charlotte Ashton Bulgaria

Tourism in Bulgaria is going from strength to strength according to new figures released by Bulgaria’s tourism agency. The data revealed that from January to September 2008 the number of foreign tourists visiting the country had increased by over 18% and that end of year figures are set to be equally healthy – with a 20% year on year increase predicted.

The knock-on effect of these statistics for the country’s tourism sector has been extremely positive, with the income generated during January to August 2008 up some 13% on the 2007 figure and, with the State Tourism Authority requesting more money to help promote the country as a quality destination that offers good value for money, these figures could be set to increase further still with the new year. In fact, this same Tourist Agency is predicting that a new scheme based on ‘Regional Development’ could see the monies generated from Bulgaria’s tourism industry grow by €50 million by 2011, proving that Bulgaria’s focus is well and truly on growing this sector of the economy.
Within this climate of growth in Bulgaria, the capital city Sofia is also making a stand as the European destination of choice. Bulgaria’s cultural and economic centre is also one of Europe’s oldest cities and it is increasingly proving to be a great draw for tourists and business people alike. Recent passenger figures from Sofia Airport have shown an increase of 20% a year for the last five years, with positive numbers expected despite the credit crunch. Not only this but popular budget airline Easyjet have also recently added extra flights to Sofia Airport from Manchester to their schedule – as of 11th December 2008 – with a spokesperson from the company recently commenting on the city’s potential and the new flights to be,
“…ideal for the growing number of second home owners from the region investing in the Bulgarian market, Sofia itself is one of the up and coming city break destinations for 2009.”
This additional accessibility to Bulgaria’s capital city is sure to increase its popularity further still and, as Easyjet have recognised, this proves good news for those investing in property in the region. As a growing market, this is an excellent time to invest in Sofia, and one project – The Aston Hotel Sofia – is sure to be a sound investment for the savvy buyer. This project is a 4 star hotel complex that boasts 52 beautifully designed en-suite bedrooms and 6 suites available on a buy-to-let basis. Featuring a restaurant, stylish bars, swimming pool, fitness facilities and a 400 capacity conference centre, The Aston Hotel Sofia will primarily target the business community and city-break visitor.
This hotel initiative offers investors 28 days per year of potential room income earning 50% of the revenue from their allocated room and a guaranteed 6% yield in the first year. And with occupancy rates conservatively predicted at 43%, but more likely to be around the 70% mark, as well as very few projects offering the same facilities in the area, The Aston Hotel Sofia will fill a lucrative gap in the market. Joseph Upchurch, Managing Director of Aston Lloyd, explains,
 “The major international hotel groups in Sofia are currently not able to meet demand.  In particular, there is a real lack of conferencing and business facilities. The Aston Hotel Sofia will have 400 capacity conferencing facilities that will well and truly meet this demand… so the hotel not only offers a considerable yield for minimal risk (particularly in today’s market); it’s an affordable and simple lifetime investment.”
With investors such as WBC Super Middle Weight World Champion Carl Froch already having invested into the project and infrastructure improvements taking place in the local area, as well as prices affordable at just €10,000 for an en-suite bedroom and €14,000 for a suite, now is the perfect time to invest in a slice of Sofia. Not only this but the recent announcement that the European Investment Bank (EIB) are transferring €105 million to the government of Sofia for the expansion of the underground metro system also confirms that now is an excellent time to be investing in The Aston Hotel Sofia, as Joseph Upchurch explains,
“The announcement that the Sofia government will be receiving millions of Euros to expand and improve the metro system is fantastic news for those looking to invest in property in the area. In particular, these improvements are set to reduce commuting time to our developments in Kostinbrod to just 15 minutes which can only mean even greater ROI than we anticipated for investors of both The Aston Hotel Sofia and our Capital 68 apartments.”
For more information on property investment opportunities, call Aston Lloyd on 0845 260 0646 to speak to an experienced property investment consultant. Alternatively, visit www.astonlloyd.co.uk.
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About Aston Lloyd and Partners International:
Aston Lloyd and Partners International is a leading global property development and investment company specialising in the emerging markets. Led by a team with over 30 years of experience in property investment, Aston Lloyd helps investors benefit from the significant capital growth that exists in global emerging markets like Central and Eastern Europe. They aim to deliver a wide range of services to clients, providing off-plan investments, sourcing sites and managing the build process.

Positive International Property Market Predictions for 2009

by Charlotte Ashton Bulgaria Cape Verde Egypt Tunisia

The financial landscape in 2008 has been dominated by dramatic declines on stock markets and currency crashes; this has resulted in instability in many nations’ economies as the very fundamentals upon which stable economic practices are built have been undermined. In the UK we’re living in a state where inflation is rising, interest rates are falling, our currency is declining in value and property prices are stagnating. All in all this presents a pretty bleak backdrop for would-be real estate investors, as well as for those hoping to get on the property ladder. Conversely however, in certain specific corners of the world, there are positive predictions for key property markets in 2009.

If you’re wondering how you can invest your money wisely in 2009, in an asset class where there’s not only the real potential for growth but where there’s the possibility of earning an income from your investment to boot, or if you’re looking for an alternative way to get on the property ladder in the UK if your chances of securing a mortgage in the short term are limited, the news that there are certain affordable property markets around the world built upon solid investment fundamentals is very welcome indeed. 
According to Agence France-Presse, one nation where there is intense international investment commitment supporting a construction and real estate boom is Tunisia. In a recent report the news agency highlighted the fact that the government´s pledge to change the law to allow foreigners the right to buy freehold property in the North African country has brought corporate investors and real estate developers from locations such as Dubai and Bahrain. Steve Worboys, MD of Experience International comments:
“The nation’s proximity to Europe, its increasing accessibility and underlying political and economic stability are supporting this level of investment commitment, and for an individual buyer looking for their own reasons to enter the property market in Tunisia, the nation’s tourism potential really makes it worth closer inspection.  According to the World Travel and Tourism Council (WTTC), the next decade will see strong consistent annual gains in terms of activity growth of around 4%. This is because the nation’s government and private sector investors are committing to a massive overhaul and diversification of the tourism product in Tunisia, and there is a national plan for the international promotion of tourism in Tunisia to 2016.”
Experience International handpick property development projects for their sagacious base of investors, and in Tunisia they have chosen The Dunes at El Kantaoui as being of maximum interest and potential for 2009 and beyond. The attractive low-rise apartment development has a beachside setting in a prime residential area close to Port El Kantaoui, and it boasts all the facilities one associates with the very best investment property projects such as a 36-hole golf course, a marina, restaurants and world-class spa facilities.  Prices start in the region of £20,000 for a studio apartment making this an ideal entry-level investment.
The second market that’s making the headlines for 2009 in terms of positive potential is Egypt. Steve Worboys comments: “here the WTTC are predicting annual gains of up to 7% for the next decade thanks to the intensive investment that the tourism market is enjoying. For would-be investors this is excellent news, and according to a report in Homes Overseas magazine, favourable tax rules are another reason that investors are being drawn to Egypt. The Jones Lang LaSalle Global Real Estate Transparency Index has placed Egypt in the 10 most improved countries around the world, and we’ve identified a particularly interesting project for our investors. Oasis Marina in Hurghada is located on its own private Red Sea beach, and it boasts excellent facilities such as a range of swimming pools, a spa, diving and aqua centres and a children’s club.  The development is apartment based making it ideal for jet-to-let investors for example, and prices start from just £35,873.”
Andy Parkin, an accountant from Canvey Island chose to invest an inheritance windfall at the Oasis Marina development, and he not only benefitted from a significant discount for purchasing his property with cash, but because he bought through the Experience International investment team, they negotiated him a 5 year guaranteed rental income as well as guaranteed personal usage of the property for 12 weeks. He explains why he chose Egypt: “this purchase has the element of investment that I was looking for, in Egypt there is the potential for future tourism growth thanks to the 10 year plan that the government has in place and the fact that the government is inwardly investing in their country is something to watch as is Egypt’s position as an emerging market.” 
Cape Verde is the third market under the spotlight for investors looking for the next big thing in 2009. Dubbed “the hidden Caribbean” by a Lonely Planet writer, this archipelago of beautiful sun-kissed islands enjoyed annual tourism gains in the region of 15% between 2004 and 2007 according to a report on the Assetz website, and the WTTC are predicting annual increases of up to 6% in the next decade. As the accessibility of the country and its tourism product develop, so it has been recognised that the potential for investment property bought in prime locations across the islands is immense. Steve Worboys is of the opinion that:
“We are only just beginning to see the tip of the property investment iceberg in Cape Verde, the predictions for this marketplace are exceptional both in terms of capital appreciation and year round rental returns. We have hand picked a prime development in the best location for our investors’ interest, namely the Dunas Beach Resort on Sal. It encapsulates the best of both worlds combining frontline sandy beaches on one side, and frontline golf on the other.  Located just a short walk from the centre of Santa Maria where there is an extensive array of beach clubs, bars and restaurants, this exclusive resort is set within lush community gardens and all apartments and villas have amazing tropical views.  The on site facilities include a commercial centre, a spa, pools and gymnasium. This is a high-end resort of maximum appeal and apartments start from £71,452 and detached villas from £214,456.
The final market that has made a comeback for 2009 is Bulgaria – and more specifically the winter sports resorts that the nation is becoming increasingly famous for. According to a report in the Daily Telegraph, Bulgaria’s ski resorts such as Borovets are among the most affordable and therefore popular for Britons. And with the credit crunch and high inflation squeezing all pockets in the UK, the affordability of Bulgaria makes it highly enticing. Samantha Emery from Watford chose Bulgaria for her investment property purchase for the following reasons: “I didn’t have enough money to buy a house in the UK so I decided to buy a flat in the UK and an apartment in Bulgaria to help me save to buy a house in the future. The property I bought at the Pirin Golf and Country Club in Bansko is an investment through which I gain my profit from renting – in all honesty I cannot see how the Pirin Golf and Country Club will not succeed in making me money, after all it is a 5 star development in a prime location in one of the best ski resorts in Bulgaria!”
Samantha bought her property through the investment team at Experience International who currently have another stunning development available in the Telegraph’s ‘favourite of Borovets. Steve Worboys sums up its appeal: “Borovets Gardens is a luxury, gated studio and apartment resort set in a stunning pine forested mountain location. It has first class facilities such as a fitness club, sauna, restaurant and bar, and properties start from as little as £39,041. This means that this development is highly desirable with would-be tenants because of its location and superior facilities, and because entry level pricing is so attractive, the yields that investors can potentially enjoy are likely to be very handsome indeed.” 
For more information about any of the property investment hotspots highlighted for 2009, or any of the property developments featured, please contact Experience International on +44 (0)207 321 5858 or visit www.experience-international.com.

The Day of Bansko

by Charlotte Ashton Bulgaria

On the 5th October 2008 Bansko will be celebrating 96 years of liberation; once part of the Ottoman Empire, Bansko was incorporated into Bulgaria in 1912 after the first Balkan War. The town has enjoyed a colourful past and now stands today as one of the most popular ski resorts in Bulgaria and south west Europe.

“Situated at the foot of the Pirin Mountains and only 160km from Sofia the capital of Bulgaria, Bansko is a popular town with a decade of history as a winter resort” says Steve Worboys, Director of Experience International, a specialist property agency for Bulgaria. “Bansko is well known for its reliable snow which sees the local ski season run from Christmas to Easter.”
Bansko celebrates its day of independence with various cultural activities throughout the town and following on from the annual jazz festival that is held in August, the community is happy to get together to celebrate another exciting event.
Samantha and Paul Griffiths from Watford, Hertfordshire purchased a studio apartment in a 5* development in Bansko through Experience International. “We really like Bansko and have friends that have bought in the same resort as us,” says Samantha, “We look forward to some fun winter breaks with them at the resort getting to know the area and the people better. It really is a great place and we can also see the rental potential which was something that drew us to this particular development.”
As Bansko day approaches it is still positive to see that demand for second properties in Bulgaria is not waning. According to data published on www.aplaceinthesun.com over 14,500 Britons purchased property in Bulgaria last year, bringing the overall total to 40,000 to date.
Nick Barnes, Head of International Research, Knight Frank, comments from the recently released global statistics: “The Knight Frank Global House Price Index shows that global house price inflation is continuing to fall back, with much of continental Europe now seeing low or negative growth. Nevertheless, performance is very varied, with prices still rising rapidly in several locations in Asia and Eastern Europe. Bulgaria is at the head of this list, where values have grown at 32.3% over the past year, and have now risen by 68% over the past two years.”
Steve Worboys concludes: “The Sofia News Agency has reported an increase in property investment for the beginning of 2008; we are certainly receiving a lot of interest still for Bulgaria from holiday home buyers as well as investors. As Bulgaria prepares for its winter season we are expectant that buyers will again be looking for ski properties in the mountains alongside people like Samantha and Paul who chose Bansko as a prime investment for some great winter holidays and as well as rental opportunities.”
For more information on buying in Bulgaria call Experience International on 0800 6120901 or visit www.experience-international.com.