About The Pelican Hotel
- What is the Pelican Hotel Model?
The Pelican Hotel is made up of individual Hotel Apartments leased back by the owners to a Management Company to be operated collectively as a hotel.
This model is very common in many countries including the UAE, the US, Europe, Asia and the United Kingdom. It is a tried and tested model and one that has proven highly successful.
The Pelican Hotel is designed to serve a mixture of short and long-stay guests and provides practical touches and excellent levels of service that make being away from home easier.
The Pelican business model has several advantages when compared to standard apartment rentals; this model assures investors of hassle-free income, high ROI, well managed and maintained units, high income potential, potentially high occupancy rates, diversified risk due to pooling of income and expenses, as well as the opportunity to partially own a hotel.
This model is the first of its kind in Ghana and provides a hands-off solution for international investors.
- How does the Pelican Hotel work?
The Hotel will be managed by The Pelican Hotel Limited (PHL), a company dedicated to managing the hotel exclusively for the owners, either by itself, through a subsidiary or affiliate, or through a third party.
The Pelican Hotel Limited is a subsidiary of Devtraco Hospitality Holdings (DHH).
- How does one become a unit owner at The Pelican Hotel?
The Pelican Hotel has five types of units: Family Apartment, Deluxe Apartment, Executive Apartment, Junior Suite or Standard Suite.
After purchasing the unit, the buyer is required to sign the Request for Reservation and Offer to Purchase, a Sales & Purchase Agreement and a Lease Agreement. A payment plan will be agreed with the buyer at the reservation stage and incorporated into the Sales & Purchase Agreement.
- What are the key terms of the Lease Agreement?
Under the Lease Agreement, the buyer leases the unit to The Pelican Hotel Limited (PHL). The unit shall then be included in a pool to be made available to paying guests for use as hotel rooms.
The leaseback is on-going but the owner can opt to sell at any time like a normal residential property.
- How will returns be determined?
All expenses, including advances for the expenses and in case of deficiency, shall be deducted from the gross room revenue.
An independent auditor, with large credibility and accredited with the Institute of Chartered Accountants (Ghana), will be hired to audit the hotel operations and annual operating statements, proving assurance to all unit owners, that the revenues, expenditures and, therefore, profits, are according to the laws and represent the truth.
This assures all unit owners that they are receiving reliable financial statements.
- Will an individual unit owner still earn returns if his unit was not rented?
Yes. One of the best things about this model is that a unit owner will be entitled to a share of Net Room Revenue regardless of whether his owned unit was actually rented or not.
Under our system, the hotel operator will pool together the rental revenue generated from all hotel units and distribute the Net Room Revenue to all hotel unit owners after the end of each operating year.
- Are there any other Owners Association dues?
There are no extra dues borne by the owners. Owners association dues and expenses shall form part of the hotel operating expenses and shall be deducted from Gross Room Revenue.
- Can the unit owner live in the property full time?
No. However, unit owners may occupy for personal use, a hotel room for up to 14 room nights per operating year.
Depending on occupation, the room may not be the exact unit owned.
- When does the unit owner get his or her 14 Free Room Nights Privilege?
A unit owner is entitled to their 14 Free Room Nights anytime throughout the operating year. However, the stay must be booked in advance and subject to the availability of units during the required period.
If a unit is leased after the start of an operating year, the unit owner shall be entitled only to a pro-rata number of room nights corresponding to the remaining period of the operating year.
Also, a unit owner can book any room except for peak periods or close-out days.
Traditionally, the months of June, December, January & convention periods are peak periods.
This policy is designed to ensure the maximization of revenues during the peak periods of hotel operations.
- Can the unit owner still reserve a room after exhausting their 14 Free Room Nights Privilege?
Yes, a unit owner may still book a room beyond the 14 Free Room Nights Privilege, this time as a regular paying hotel guest and after the usual booking.
- Do I have the option of selling my hotel unit?
Yes. However, the unit shall be offered first to The Pelican Hotel Limited. This is great for you because you will constantly have a prospective buyer for your unit(s).
Should The Pelican Hotel Limited, waive its right of first refusal over the unit, it can be offered to the open market at the same terms and conditions offered to PHL.
The new owner will be bound by all existing agreements namely, the Lease Agreement.
- When will earnings be distributed?
Rental returns will be distributed yearly in arrears
- What happens if revenues can’t support all expenses (shortfall)?
The hotel model is designed such that all expenses are paid from revenue. However, if revenue is insufficient to cover Operating Expenses such as Utility Charges, the Reserve Contributions and other charges or any other amounts payable under this Agreement, and Occupancy for any year does not exceed thirty percent (30%), the Owner is expected to pay the Manager for any shortfall.