New Kraków aparthotel under construction

“We will soon finish the 0 level,” said Tomasz Stępniowski, the president of the board of the Lwowska SPV company, which is the building’s investor. Aparthotel Lwowska 1 is planned to be opened by December 2016. The building’s shell stage should be completed in November this year. The Lwowska 1 project is being developed at the site of a pre-war quarter which was traversed by an expressway several years ago.
Designed by the Kraków-based Biuro Projektów Lewicki Łatak, which in the past prepared the development concept of the central part of Kraków’s Podgórze district together with the Plac Bohaterów Getta project, Lwowska 1 is being constructed by a Kraków-based general contractor, Budomax, which also has its share in the Lwowska SPV company.
The Lwowska 1 facade facing ul. Lwowska was optically divided in the same way as the layout of the adjacent tenement houses and it corresponds to the divisions on the frontages on the other side of the street. The four-storey Lwowska 1 will provide apartments earmarked for sale. The project is planned to include 137 apartments with floor plans ranging from 27 sqm (one-bedroom flats) to 91 sqm (four-bedroom flats). All the apartments will function in the three-star aparthotel mode. The building will include a reception area, a conference hall and a fitness club as well as a restaurant. “The restaurant will be run by the aparthotel operator in order to ensure the appropriate number of meals for the guests,” explains Tomasz Stępniowski.
The commercialization of the project is being carried out by Rudnicka&Consulting. “The sales of the apartments can be considered officially launched,” said Marzena Rudnicka, the president of Rudnicka&Consulting. 97 pct of the retail and services space available within the project has already been sold. According to the project representatives, four investors split the ground floor area between each other to lease it to services and retail tenants.
The aparthotel mode implies the purchase of a separate apartment, the owner of which is allowed to use it for up to 30 days in a year. Each of the apartments has a separate land and mortgage register entry and land ownership. The apartment owners also buy shares in the common areas (the restaurant, fitness club, conference halls and technical rooms) and parking spaces. The aparthotel apartments are covered by a 10-year leasehold secured by the aparthotel’s operator. During this time, the buyer receives a fixed profit of 18 pct of the net purchase price of the apartment and the shares (5 pct in the first year, 6 pct in the second year and 7 pct in the third year). Starting from the fourth year of the tenancy, the apartment owners will receive a rent comprised of 35 pct of the aparthotel operator's net revenue multiplied by the owner’s share.