& Director of Project & Operations at Marival
Q: For our readers in Canada who might not be familiar with the term, could you briefly explain the concept of a Condo Hotel?
A: A Condo Hotel regime, as one of its principal benefits, guarantees the purchaser that his finished unit will be offered as part of the hotel's inventory and generate income when not in use by the owner. An added-benefit of Marival Residences is that the builder, Alfonso Rizzuto, a Canadian himself, is also the operator of the hotel. The goal is not only to insure the quality of the construction, but to maintain the level of services and amenities expected of a world-class tourist hotel destination.
Q: Can we clarify this point? The purchasers are full-owners of their unit?
A: Yes. This is not a time-share or fractional operation. Owners have 12 weeks a year when they can use their units. For the rest of the year owners agree to place their units at the disposition of the operator to be offered as hotel suites to paying guests, and effectively become partners in the income generated by their rental.
Q: How is the income generated divided amongst the owners?
A: All the units in the rental pool, whether they are rented or not, participate in profit sharing based on the number of square metres of each specific unit. Remember, your income is not based on what your unit earns, but rather what all the pooled units generate together. Profit from hotel rentals, after maintenance and operational charges are considered, is then divided equally with 50% for the operator and 50% for the owners.
Q: Then owners make the same dividends whether the unit is rented or not?
A: Yes. Occupancy is the responsibility of the operator, not the owner. Units that sell for a lesser initial price (location, size, orientation within the development, etc.) share equally in the rental pool as the premium units, and neither is dependent on direct occupancy to guarantee the income.
Q: How can you guarantee this income?
A: Simple. Marival was the first hotel in Nuevo Vallarta and has been operating successfully for over 24 years. It was the first All-Inclusive Resort in the Vallarta region, and has been operating as a Condo-Hotel for the last 24 years. We have an established base of clients from around the world as well as direct agreements with the largest tour operators across Canada and the U.S. including: Vacances Air Transat, Signature, Apple Vacations, Libgo Travel Mark Travel Corp. and others. Marival Resort & Suites also hosts conventions from around the world and has enjoyed a 75-85% occupancy rate for the last decade.
In fact, it's our position in the hotel industry which allows Marival to guarantee our new condo purchasers an 8% (minimum) return on their investment for the first two years of ownership, and suspend maintenance fees for the first three years as an added incentive to buy.
Q: What are the other benefits of ownership at Marival?
A: Usually, when you buy a condo in Mexico, once the builder delivers the product to its owner, his responsibility has been met. The development must then form a condo-association to collect dues and uphold the collective rules. In a Condo-Hotel, the operator continues to be responsible for these things. Owners arrive to find their furnished units completely attended and stocked, you will have a Spa and Fitness Center, Magnificent swimming pools, 1 specialty restaurant, 1 snack bar, 1 lobby bar, 1 sky bar (pool lounge) and a commercial area. In addition they have access to all the hotel amenities of Marival Resort & Suites which include 6 restaurants and bars, Beach Club, tennis, swimming pools, discos and guest services commensurate with a 495-Resort Rooms & Suites.
Q: How do you guarantee that the units will be in pristine shape for the owners?
A: The unit is sold completely furnished with all appliances and is ready-for-use. In the Condo-Hotel agreement, the operator is responsible for the condition of the units. For example, if the television ceases to work, it's replaced. Everything must be in the condition you would expect as a guest in a prestigious beach resort.
Q: What happens if the owner only wants to use his unit eight weeks instead of the 12 weeks he is entitled to? Is there a penalty?
A: No, in fact, the goal of the promoter is to give further incentives for non-occupancy! The more time the unit is available for the rental pool, the higher the percentage of income the operator is willing to share with the owner. The idea is to generate income as well as enjoy the time you can spend in your unit. If your usage is less than 12 weeks a year, this allows the operator to generate more income by renting your condo for longer periods as part of the hotel inventory.
Q: Any final words to potential investors?
A: Clients who invest in Marival Residences become owners in our hotel and partners in a successful, two-decade operation. We are located less than 30 minutes from an international airport and directly in front of some of the most beautiful beaches in the world. Come stay at Marival Resorts on your next Mexican holiday. If you do, we're confident you'll become an owner, too. 
