Sofia Reyes
Urban Real Estate Development Analyst
For most Boracay real estate investors, the property management operator is the most important decision they will make after choosing the property itself. Here is how to evaluate and choose correctly.
The Hotel Pool Model and Its Mechanics
Most resort-integrated Boracay condominiums operate under a hotel pool model. All units enrolled in the pool are managed as hotel rooms by the operator — marketed, priced, and allocated to guests as part of the hotel's room inventory. Revenue from all pool rooms is aggregated and distributed to owners on a pro-rata basis according to each unit's contribution. This pooled model has an important implication: your individual unit's performance is partially subsidized by and partially subsidizes the performance of other units in the pool.
How to Evaluate a Management Operator
Before purchasing in any Boracay resort development, evaluate the management operator on five dimensions: (1) Online Travel Agency presence and ratings — Is the property listed on Booking.com, Agoda, Expedia, and Airbnb? What are the guest review scores? (2) Revenue management capability — Does the operator dynamically price rooms based on demand and seasonality? (3) Booking platform relationships — Does the operator have preferred partner status with major OTAs? (4) Financial stability — Is the operator financially solvent? (5) Transparency of reporting — Do existing unit owners receive clear, detailed monthly income statements?
The Management Agreement: Key Clauses to Review
Before signing any management agreement, review: the revenue split and definition of gross revenue subject to the split, the duration of the agreement and termination provisions, the operator's obligations for unit maintenance and refurbishment, the personal use entitlement for the owner, dispute resolution mechanisms, and representations about minimum income guarantees (if any) and their enforceability.
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