This article explores the potential of investing in Airbnb properties, focusing on Scarlet Suites by Exynos, located in KLCC. We delve into the building's features, facilities, rental performance, and potential risks and rewards of investing in such a venture.
Location and Initial Impressions
Scarlet Suites boasts a prime location in KLCC. The building also houses a popular cafe, replacing the more typical bar often found in hotels. A music lounge is also located within the vicinity. The article discusses whether investing in a property managed as an Airbnb or hotel suite in a location like KLCC is risky, especially considering potential future Movement Control Orders (MCOs) and the constant use of facilities by outsiders.
A Tour of Scarlet Suites
The article joins the speaker and Hans, the manager of Scarlet Suites, on a tour of the property.
High Occupancy Rates and Hotel-Like Design
Scarlet Suites experienced high rental rates of 90% or more in the latter half of the previous year. A key feature is its hotel-like check-in system, eliminating the need for physical key exchanges. The design of the suites is also reminiscent of a hotel.
Facilities and Amenities
The building offers a range of facilities, catering to both tourists and local travelers.
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Business Center: The spacious, two-story business center is designed to appeal to those working remotely, including foreigners.
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KTV Rooms/Game Rooms: These provide entertainment options for guests seeking private events.
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Thoughtful Bathroom Design: The bathroom design considers practicality, with a hollow floor design to manage water from swimmers.
Sky Facilities and the Saloma Bridge View
The property offers unique sky facilities on floors 46-48, including views of the Saloma Bridge. The Saloma Bridge is especially attractive at night, featuring lights that display the colors of the Malaysian flag.
The 8th Floor Pavilion
The 8th floor features a pavilion and easy access to greenery, offering park-like amenities. These pavilions are illuminated at night.
Development Room
The development room maintains a residential feel, despite being used as an Airbnb unit. The suites, though only 452 square feet, feel larger.
Fully Equipped Units
The units are delivered fully equipped with kitchen cabinets, digital locks, water machines, plastered ceilings, downlights, and air conditioning. Investors need only add a washing machine, sofa, and TV to make the unit ready for rental. Investors have freedom to personalize the design of their Airbnb unit.
High-Quality Finishes
The quality of the toilet and included features like mirrors and cabinets are notable, resembling hotel-style designs.
Investment Potential and Considerations
The small unit sizes in KLCC are relatively rare, making this an appealing investment for those who dream of owning property in the area. The developers have clearly designed the project with Airbnb in mind, evident in the exterior design and convenient check-in process.
Rental Yields and Financial Benefits
The rental yields achieved by some investors, reaching up to 8%, were surprising. This level of return can fully cover the installment payments and generate a high deposit income.
The Changing Landscape of Property Ownership
The Airbnb model allows investors to participate in the hotel industry without owning a traditional hotel. Professional management centers and developers like Exynos enable individuals to generate income and own assets in prime locations like KLCC. This creates a win-win situation for operators, owners, developers, and the property itself.
Areas for Improvement
Despite the many positive aspects, the article identifies some areas for improvement.
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Check-in Clarity: The check-in process could be more streamlined, with a more obvious and unified reception counter for Airbnb guests.
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Car Park Navigation: The car park can be difficult to navigate, especially for locals. However, the availability of ladies' parking is a positive feature.
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Lift Congestion: Lift wait times can be long, especially during peak check-out periods.
Addressing Lift Congestion
The management has addressed the lift issue by implementing a system where a security guard controls the lift during check-out times, prioritizing groups going to the ground floor. This improvement demonstrates the developer's responsiveness to customer feedback.