Sun Bat Yam is a spectacular new seaside real estate project. It is a large luxury hotel complex designed and built to the highest standards in one of the best locations in Israel. It is the brainchild of US businessman and entrepreneur Joshua Guttman and designed by Feigin Architects, one of the leading hotel and leisure real estate architect firms in Israel. Completion is scheduled for the third quarter of 2018. When open for business, it will be an important addition to Israel´s hotel scene in general and business tourism in particular.
The complex is unique because it combines tourism with real estate investment. It will yield respectable annual yields of not less than five percent of the investment in the first two years of operation, plus investors will have a holiday home in Israel by the sea. The grounds cover 15,000 square meters of lush landscaped gardens designed by a leading horticulturist. The complex is made up of two 28-floor towers with a low-rise annex that will contain, among other things, a 2,200 sq. m. convention centre, of which 1,500 sq. m. will be open space unobstructed by columns or pillars.
The superb convention centre will place Sun Bat Yam at the forefront of the country’s convention tourist industry. Consequently, most of the hotel rooms will be occupied by business tourists. This is a very important element in the investment side of the project.
The hotel itself will have 376 suites plus world-class public areas. These include a luxurious lobby, lounges, dining areas and restaurants, a ballroom, conference rooms and coffee shops. The complex will also include 4,000 sq m. of beachfront promenade with fashionable clothing stores, restaurants and cafes.
The complex will also feature a large gym and spa area with state-of-the-art equipment, wet and dry saunas and a semi-Olympic indoor swimming pool, as well as a Dead Sea pool and Dead Sea treatments. In addition, there will be an 80-meter outdoor infinity pool and direct access to the pristine sandy beach of Bat Yam.
The hotel will offer five types of guest accommodation, from 37-sq. m. studio units to three types of two-room apartments, varying from 52 to 61 sq. m. The largest unit will have three rooms and a floor area of 73 sq,m. All hotel units will have balconies with full sea views.
These hotel units will be rented out not only to hotel guests but will also be sold as real estate investments on a private land registry basis and can be resold without any limitations. Because of its prime location on the Bat Yam seashore, the investment value is potentially very rewarding, and one can expect hefty capital returns.
Bat Yam is part of the Tel Aviv metropolitan area, and seaside properties are very limited. The land on which Sun Bat Yam is being built is among the last reserves of seaside building land in the area, which means significant appreciation of the property in the future.
Einat Zakariya, who is in charge of marketing explains, “Investors in Sun Bat Yam will have the advantage of having a property that will potentially increase in value and yield a monthly income. In addition, they will have at their disposal accommodation at the hotel for 90 days a year.”
The increase in value is based primarily on location; the annual yield is based on the daily revenue of the entire hotel room pool. The unit owners receive 25% of the hotel pool revenue, divided among them according to the size of their unit. The unit owner pays no annual maintenance fees. When the unit owner occupies his/her unit, a daily management fee of $50 to $65 is paid according to the size of the property.
Zakariya says, “We believe that our annual income will be high because we expect a high occupancy rate. Sun Bat Yam, with its magnificent convention center and unparalleled business facilities, will be very business oriented. A large part of the clientele will be made up of business people in general and those attending the conventions held in our complex in particular. This clientele will make the hotel less dependent on the seasonal fluctuations of the tourist season; consequently, our expected occupancy rate will be higher than the annual 71% occupancy in the Tel Aviv area. And increased occupancy means increased income.”
She adds, “With regard to their 90-day annual stay at the hotel, they will be required to reserve accommodation nine months in advance if they want to use their occupancy option in the high season, especially Passover, the High Holy Days or July and August. They will be able to have accommodation anytime they want, provided their unit — or at least a similar sized unit or a larger one — is available.”
For more information, go to Sun Bat Yam.Stephen Barker