Solomon Capital has packaged over 50 unsold apartments in Sydney's south-west into short-term serviced apartments
Solomon have packaged unsold apartments in Sydney into serviced apartments
Targeting Asian tourists on the Approved Destination Status (ADS) scheme
Visas are issued only to people travelling on structured tours
Hotel and asset management group Solomon Capital has packaged over 50 unsold apartments in Sydney into short-term serviced apartments.
Sydney-based Solomon is helping a developer turn an entire newly-built block of units in Strathfield South into hotel rooms targeting Asian tourists on guided tours on the Approved Destination Status (ADS) scheme.
Under ADS, visas are issued to people travelling on structured tours organised by outbound tour operators approved by the government. These operators tend to bring large numbers of travellers with them.
Solomon Capital's hotel division, Solomon Hotels, which owns and operates eight NSW regional and suburban hotels, said it has found a sweet spot and ideal short-term solution for developers stuck with unsold units by using its flexible hotel management model and its ADS database.
As the single owner of the registered strata units, the South Strathfield developer is able to lease the apartments unobstructed, while retaining its option to sell the units when the market picks up. The property will be completed and furnished for lease early next year.
As the property is about 12 kilometres south-west of the Sydney CBD, rates are also more affordable compared to the CBD at up to $150 a night for a one-bedroom unit and up to $250 a night for a two-bedroom.
The cheaper price appeals to ADS tourists who follow a strict transport-catered program and are agnostic to hotel locations.
Solomon in turn charges developers and owners a fixed management fee.