From Skeptics to Investors: Why We Just Bought an Aparthotel
In a changing market, the best way to give advice is to follow it ourselves. At Casteels & Eriksson, we recently did something we would not have considered a few years ago: we committed to the purchase of an aparthotel unit as a strategic investment for our own portfolio.
What Exactly is an Aparthotel?
For those unfamiliar with the model, an aparthotel is a hybrid between a luxury apartment and a hotel. You own the freehold of the individual unit—meaning it is your property on the land registry—but the entire building is managed by a professional hotel operator. They handle the bookings, maintenance, and guests, while you receive a share of the profit or a guaranteed fixed return. It is essentially a hands-off real estate investment designed for income rather than primary residency.
A Change in Perspective
To be honest, we used to overlook these properties. The restrictions on personal use and fixed rent models felt less competitive than traditional short-term rentals. But the landscape has shifted. New legislation has placed heavy barriers on residential holiday rentals, making the old model increasingly difficult to navigate. Suddenly, the aparthotel concept has gained a massive competitive advantage.
Why We Pulled the Trigger
We didn’t just analyze the data; we acted on it by identifying five key pillars that make this model an irresistible strategic move in today’s market:
Hands-off Management: The owner is completely removed from operational headaches. The operator takes full responsibility for everything.
Guaranteed Fixed Return: You receive a set amount regardless of whether it is a high or low season. This offers total stability against market volatility.
Minimal Overhead: As the owner, you only pay the IBI. There are no costs for cleaning, management, or community fees.
Accessible Entry Point: Because this sector has historically been overlooked, prices have not risen significantly over the last few years, offering a great entry price compared to traditional apartments.
Passive Capital Gain: The rarity of this concept combined with the new legislative advantages suggests strong capital appreciation over the coming years.
Learning by Doing
We bought into this model because we believe the best way to guide you is to walk the path first. By navigating the contracts, taxes, and management firsthand, we aren't just reciting a brochure—we are sharing our actual experience.
If you are curious about how these legislative shifts affect your own plans, or if you want to see the numbers behind our own investment, let’s talk.
