The Imperial Suites (Edmonton/Calgary)?

[TommyK]

Hi fellow REIN members!
I have recently purchased a condo and I am seeking some options to maximize my returns.

I came across The Imperial Suites in Edmonton. They are one of the largest corporate executive suites providers in Alberta.

To make the long story short, have any of you been a client of theirs as an investor?

What they do is I pay the cost to furnish the place and they take over the management completely. In the end, I just collect pay check (of course less their cost as well).

I talked to a lady who has been a client with The Imperial (and Premier Suites before), and she has nothing but good things to say about the Imperial.

A typical example of a 2-bedroom deluxe suite is:
$110/night x 30 = $3300 monthly rent charged by Imperial
they take 30% cut = 990
cleaning fee = 200
*they pay for internet and cable

So in the end, it is around $2000 (less all utilities) in my pocket. This doesn`t include my initial cost to furnish the condo, however.

It does seem quite lucrative without having to find the corporate clients.

I would like to hear your experience with this kind of investment.

Thanks!

Regards,
Tommy

 

[probhatt]

TommyK,

Could you provide a link or email address for them? I`m interested hearing more about this, and what others have to say.

 

[Thomas Beyer]

be mindful of sustainability of rents (i.e. vacancies) and also of ongoing cost to replace broken toasters, beds, chairs, cutlery, DVD players ... assume 1/3 of initial furnishing costs annually to replace stuff !!

 

[GarthChapman]

Historical vacancy rates in that sector run at around 30% so build that into your financial analysis. The last 2-3 years have been much better but the times, they are a changin`.

 

[TommyK]

QUOTE (GarthChapman @ Nov 3 2008, 09:26 PM) Historical vacancy rates in that sector run at around 30% so build that into your financial analysis. The last 2-3 years have been much better but the times, they are a changin`.

I agree. The changing climate in the big industries will definitely impact on the number of executives needing this type of accommodation. However, I have been told that The Imperial Suites is seeking to house nurses. And that`s another story!