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.