High-flying executives who enjoy a regular taste of 5-star luxury hotel accommodation might be interested to learn that Banyan Tree Residences now offers them the opportunity of making their hotel stay permanent.

While prices are beyond the reach of most folks (24.8 million baht [US$740,000] for the cheapest, two-bedroom, 128-square-meter hotel-condo unit), there is an interesting financing option available whereby the operator can lend the buyer up to 70% of the price. This might be of particular interest to foreigners who are interested in setting up a home in the capital, but are wary of local banks and property deals.

Fractional ownerships are also under consideration for those with somewhat slimmer pocketbooks, according Richard Skenes, the company’s assistant vice-president for properties.

Earning when you’re absent

Similar to the concept of the timeshare, or the French government’s leaseback program, buyers of units are offered the choice of a guaranteed 6% return for six years and a share of the revenue thereafter, or the latter option immediately.

All things considered, Skenes recommends the first choice since it is risk free and probably offers a slightly higher interest rate.

To avoid a potential conflict of interest following the sixth year, the operator has pledged to ensure a fair rotation policy, while data will be available to owners on a regular basis. This prevents the hotel from channeling guests towards its own units, which has proven to be one major concern among potential buyers.





One important rule worth noting is that you cannot rent out your unit independently – all revenue must come through Banyan Tree as a manager of your unit. Joint (co-) owners, in particular, need to be aware of this restriction.
Attractive year-round option

Since condo units tend to be more successful in resort locations, Banyan Tree is offering buyers in Bangkok the right to live in the residences full time to make the units more appealing.