‘Apartment Hotel’ Business Model

The Hamilton Grand is designed to operate as an ‘apartment hotel’ offering the full service standards and atmosphere of an intimate boutique hotel.

Each suite is a separately titled and individually-owned condominium. There is no separate hotel operation; the Rental Management Program is designed for the convenience and benefit of the suite owners.

Because all of the suites are fully-equipped and furnished apartments, each with a kitchen and laundry, the Hamilton Grand is able to offer a full – and locally incomparable - range of accommodation options, from overnight (hotel-style) to extended-stay (several weeks or months) and even permanent residency.

Indeed the concept of living in an apartment hotel can prove not just convenient but surprisingly cost-effective (especially for a single person) in comparison to maintaining a house.

A healthy blend of short and long term guests provides both stability and above-average cash flow relative to a standard rental building or independent condominium apartment.

The concept provides managerial benefits, expertise and efficiencies that would be difficult for an individual owner. For an older- but active – retiree, the environment and location are ideal.

A centralized leasing management program is incorporated into the Condominium Declaration.

This management approach will ensure;

• Rate consistency and stability (it is counterproductive for individual suite owners to compete with each other)
  
• Consistency of services (including front desk staff, housekeeping, parking, breakfast, in-room amenities, room service, technology, parking, etc.)
  
• Professional Marketing (centralized marketing, pro-active internet positioning, referral networks, tourist and corporate networking, etc. are not financially practical for individuals to implement and/or operate)
  
• Efficient and timely property management and accounting, including payment of expenses and monthly distributions: for the suite owner, the investment is ‘hands-free’.

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How does the Rental Management Program work?

Participation in the Management Program does not include or imply any income guarantee or specific cash flow expectation.

Prospective purchasers are advised to carefully read the Condominium Disclosure Statement, the Rental Management Disclosure Memorandum and the Rental Management Agreement to more fully understand the responsibilities and liabilities of the suite owners and of the Rental Manager, as well as the costs and charges that each suite owner is responsible for.

Why Invest Now?

Notwithstanding "Financial Experts" (who created the mess in the first place) and media analysts (always in need of a crisis to cover), ….. life DOES go on. Historically, well-located, well-managed real estate has always proved the best long-term investment.

Limited supply
There are only 138 suites in the Hamilton Grand. Given the high level of general interest already in the project, and the developer’s existing contacts and referral networks, it is likely that the pre-construction quota will be achieved without the usual high-profile advertising program. Those who are interested in acquiring a suite are advised to act swiftly.

Long term “Warren Buffett” investment
The Hamilton Grand project, (and its operational system), were designed for people who appreciate the value of including in their investment portfolio quality real estate with consistent cash flow and no management headaches. It may not be as exciting as other clever Bay St./Wall St investment options (hedge funds, derivatives, mutual funds…..) but throughout history, real estate has consistently proven to be the best long term investment. A suite in the Hamilton Grand will always have value. (unlike stock market shares, which can evaporate).

Minimal Competition
There is currently no competition in terms of quality all-suites apartment/hotel facilities in the Hamilton/Halton region, let alone the downtown commercial core. Frankly, the Hamilton Grand will be, hands-down, the best hotel in the Hamilton region for many years to come.

Property value gains
More and more people are selling Toronto homes and commercial properties, paying off their mortgages and moving to Hamilton where they can literally buy twice the property at half the price, with double the character. While other markets are softening, the Hamilton region is enduring and even increasing.

Lower construction costs
Now is a good time to build. Construction costs are declining as residential building suppliers and trades are no longer assuming an unlimited demand for their services and materials. Competitive bidding is once again a realistic process.

Sensible business model
The Hamilton Grand business model focuses on providing a limited supply of a superior product at a highly competitive rate in an era where consumers and businesses are value oriented. In the age of the internet, consumers seek out and patronize the best value.

Major transportation upgrades
The Hamilton Central GO Train and Bus Station is located only 2 short blocks from the Hamilton Grand, providing direct express bus and train service to Toronto's Union Station. New LRT transit lines to be installed throughout Hamilton with major lines intersecting within a block of the Hamilton Grand. Typically property values on LRT lines increase significantly.

Click to review the following:
Investment Program Info	Management Contract	Sample Operational Budget