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Frequently Asked Questions
What is the Invest-Hotel?
The Invest-Hotel Scheme (IHS) allows hotel developers to finance the
development of a hotel project by allowing them to sell villas, suites, rooms
or other components that form part of the hotel to individual buyers.
The Invest-Hotel Scheme thus provides:
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for the development of a hotel on either freehold or leasehold land of more
than 1 hectare where units, villas, suites or other parts of the hotel can be
sold;
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that the buyer of a unit enters into a lease agreement by which the property is
leased back to the seller; and
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that the unit leased to the seller may be used and occupied by the unit owner
or any person on his behalf for a total of not more than 45 days in any period
of 12 months.
How do I engage in the Invest-Hotel Scheme?
A company intending to invest under the Invest-Hotel Scheme has to apply to the
Board of Investment for an IHS Certificate. The application must be submitted
as per the guidelines issued by the Board of Investment.
What is a unit?
A unit is a room, villa, apartment or suite of the hotel.
Who is a unit owner?
Any person who has acquired a unit under the Invest-Hotel Scheme is a Unit
Owner.
Under what principle the Invest-Hotel operates?
Under this scheme, the hotel building is divided into private and common units.
The full freehold ownership of the private units is passed to the respective
owners whilst the common units (e.g. entrance lobby, garden, roof) are
collectively owned in "copropriété" proportionally relating to the size,
situation and nature of private space held by each owner.
The sale of units or other parts of the hotel is thus made with a “règlement de
copropriété” that permits the owner of a unit/property to acquire the full
freehold ownership of his unit or property, hence dividing occupation of the
property.
The IHS Company has to create a Syndicat des Copropriétaires (an association)
and the unit owners will be, ex officio, grouped as members in the Syndicat des
Copropriétaires.
On acquisition of a unit, for how many days can I stay in the
unit acquired?
A unit acquired by an investor must be leased back to the IHS Company (seller)
where the unit owner or any person on his behalf may use that unit for a total
of not more than 45 days in any period of 12 months.
Can the IHS Company sell other parts of the hotel?
The IHS Company can sell any other part of the hotel on approval from the Board
of Investment.
Will an Invest-Hotel require a Tourism Enterprise Licence to
operate as a hotel?
An Invest-Hotel must be licensed by the Tourism Authority to operate the hotel.
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