{"id":22898,"date":"2008-11-17T17:19:00","date_gmt":"2008-11-17T17:19:00","guid":{"rendered":"https:\/\/clusterfamilyoffice.com\/blog\/?p=439"},"modified":"2008-11-17T17:19:00","modified_gmt":"2008-11-17T17:19:00","slug":"soho-trump-hotel","status":"publish","type":"post","link":"https:\/\/clusterfamilyoffice.com\/en\/soho-trump-hotel\/","title":{"rendered":"Soho Trump Hotel."},"content":{"rendered":"

\"\"<\/a>Nine months after our article Strategic Four of Aces. Back to the American Dream <\/a>In which we had already outlined the potential of a four-pronged investment strategy, we are going to review it in the context of the current global landscape and put forward a specific investment proposal.<\/p>\n

\"\"<\/a>As you will have noted, we had four key factors for investment in North America: the potential for capital appreciation in prime property, corporate bonds, equities and the $\/\u20ac exchange rate. Starting with the last point, the exchange rate has moved in the potential investor\u2019s favour, from 1.5 dollars per euro at that time to the current 1.25 (+17%). As for equities, the Dow Jones has lost approximately 30%, although shares in companies such as KO have fallen by 22% and JNJ by a mere 5%. As for the financial sector, it is best not to even mention it, as it is difficult to find banks with falls of less than 50% \u2013 not for the faint-hearted, as we warned at the time. Certain non-financial corporate bonds, despite the scares caused by car manufacturers, still appear attractive in the short term, although the difficulty all companies in general are facing in refinancing themselves means their balance sheets are highly unstable and, consequently, their risk of credit event<\/span> it cannot be ruled out in many very large companies. Finally, as regards a recovery in the US property market in general, it seems that this is still a long way off, although much closer than in Spain or even Europe<\/a>. And that is why our recommendation for armour<\/span> as a form of property investment (and, in certain cases, as a partial alternative to some types of fixed-income investments), it is currently focused exclusively on prime locations such as Manhattan.<\/p>\n

\"\"<\/a>We are currently offering our clients access to a range of special offers in New York. From flats on Wall Street to units in the Soho Trump Hotel<\/a>, the only 5* GL in the legendary neighbourhood of Soho<\/a>. The final marketing of the latter is due to take place in early January 2009 and its opening is scheduled for the end of that same year. The investment costs for one of the rooms in this hotel range from 1 to 1.5 million $, and the return on investment forecast by the developer and the Trump Organisation Hotel<\/a>, which operates a large number of luxury hotels worldwide, offers investors an approximate annual net return of 7%. The final return will, of course, depend on the occupancy rates and nightly rates achieved by the hotel operator itself. As a point of reference, the average occupancy rate for hotels in New York this year exceeds 90% and is rising, and it would be difficult to find a property prime<\/span> among the <\/span>primes<\/span> such as this Trump Hotel in the heart of Soho, Manhattan. Furthermore, as we always strive to link happiness with wealth, this type of investment can be used for personal purposes for up to 120 nights a year, which, naturally, reduces the return proportionally.<\/p>\n

\"\"<\/a>Naturally, given the volume of bookings made since Cluster Family Office<\/a>, our clients who purchase at least one property benefit from special discounts, in addition to the commission generated by our role as estate agents, which we always pass on in full to our clients in every property transaction. In this way, the expected returns on the investment are significantly increased.<\/p>\n

\"\"<\/a>That said, you may well be wondering why we\u2019re mentioning this type of investment \u2013 which exceeds one million $ \u2013 in a blog dedicated to providing free advice for those with modest assets? Well, staying true to the philosophy of Fresh Family Office<\/a> Rather than attempting to adapt and apply investment protocols and strategies designed for high-net-worth individuals to small investors as well, we are endeavouring to ensure that the official partner of Trump<\/a> y Prodigy<\/a> in Spain, Idien Group<\/a>, facilitates the sale of fractions of units separately through investment companies. This would allow a small investor to purchase, for \u20ac100,000, \u20ac200,000 or \u20ac500,000, one-tenth, one-fifth or half of a unit, and to share the returns and ownership jointly with a group of small investors. It appears that this proposal will be launched shortly and that various units at the Soho Trump Hotel in Spain will be sold under this structure, thanks to CFO<\/a>. And who knows whether, in the near future, 15 units could be managed as a SOCIMI, that is to say Reit<\/a> Spanish.<\/p>\n