Condo-Hotels, Serviced Apartments and Rental Pools in Cambodia

Prepared by the NovAsia Editorial Team

A conventional investment apartment follows a relatively simple model.

The owner finds a tenant, signs a lease, collects monthly rent and pays the costs of ownership.

A condo-hotel may look similar only at the point of purchase.

The owner holds an individual unit, but the cash flow is generated through a hospitality business:

• nightly room rates;
• occupancy;
• seasonality;
• online travel agencies;
• housekeeping;
• staff;
• marketing;
• operator standards.

A serviced apartment introduces another model. It can be:

• a single building owned by one company;
• a long-stay hospitality asset;
• a collection of privately owned apartments under central management.

The words rental pool do not explain the economics on their own.

To understand the investment, the buyer must separate:

• ownership right;
• tourism or accommodation licence;
• management contract;
• rental agreement;
• revenue-allocation formula;
• owner expenses.

This article provides general information, not legal, hospitality, tax or investment advice on a particular Cambodian project.

Three labels can conceal very different structures

Condo-hotel

A condo-hotel generally combines individual unit ownership with hotel-style operation.

Private owners acquire units. An operator rents them to guests for short or medium stays.

Serviced apartment

A serviced apartment describes the guest product more than the ownership structure.

The building may be owned entirely by one company and operated as a long-stay hotel or rental residence. In that case, an investor does not necessarily purchase a separately titled apartment.

Branded residence with a rental programme

A branded residence can remain primarily residential, with rental management offered as an additional service.

It does not automatically function as a hotel.

Rental pool

A rental pool is a contractual mechanism that combines units for sales and income allocation.

It can operate in:

• condo-hotel;
• branded residence;
• resort;
• independent serviced-apartment scheme.

The labels are therefore not interchangeable.

The core questions are always:

• Who owns the unit?
• Who holds the right to operate accommodation?
• Who contracts with the guest?
• Who sets the price?
• How is income calculated?
• Who pays operating and capital costs?

The owner becomes exposed to an operating business

A hospitality property does not earn solely because the real estate exists.

A well-located unit can generate weak owner cash flow if the operator performs poorly in:

• distribution;
• pricing;
• reviews;
• staffing;
• cost control;
• maintenance.

The owner accepts several risks:

• tourism and business demand;
• seasonality;
• operator reputation;
• hotel competition;
• OTA commission;
• payroll;
• utility cost;
• room condition;
• licensing;
• banking and currency;
• management-agreement termination.

A long-term tenant can remain for a year regardless of hotel occupancy in the city.

A condo-hotel must sell the room night by night.

This is why hotel yield cannot be compared directly with apartment gross yield without adjusting for operating expenses and volatility.

Ownership does not automatically authorise short-term accommodation

An individual title proves ownership of the unit.

It does not necessarily authorise the owner to operate an accommodation business.

Cambodia’s Law on Tourism provides for licensing of tourism businesses and classification of hotels and accommodation services.

For a specific condo-hotel, determine:

• which entity holds the tourism licence;
• which premises the licence covers;
• whether individually owned units may participate;
• whether the operator has exclusive rights;
• whether building rules prohibit independent short-term letting.

A private-unit title does not automatically allow the owner to list the apartment independently for nightly stays.

Where the operator leaves, ownership may remain intact while the hospitality operation stops.

A replacement may require:

• new operator;
• licence update;
• owner approval;
• new systems;
• new branding;
• new rental contracts.

This distinction directly affects liquidity because the real estate lasts longer than the operating permission.

Mandatory and optional rental programmes

In an optional programme, the owner may choose whether to participate.

Depending on building rules, the owner may:

• live in the unit;
• lease it long term;
• place it into the pool;
• remove it later.

Optional programmes provide flexibility but create a less uniform inventory.

Some units are in the pool, others are owner-occupied and others may be privately managed.

A mandatory programme requires participation for a specified period.

Owner use may be limited by:

• annual number of days;
• booking notice;
• blackout periods;
• high-season restrictions.

This model is closer to a hospitality investment product.

Savills has noted that mandatory programmes restrict personal use and should be analysed primarily as investments rather than ordinary second homes.

The correct structure depends on the buyer’s objective.

A person seeking several months of personal use needs flexible rules.

An investor seeking maximum room availability may prefer a broad compulsory pool.

Guest revenue passes through a long chain of deductions

A guest may pay USD 150 for one night.

That does not mean the owner receives USD 150.

Possible deductions include:

• taxes;
• mandatory guest charges;
• OTA commission;
• travel-agent commission;
• brand fee;
• reservation fee;
• card-processing fee;
• housekeeping;
• linen;
• guest supplies;
• utilities;
• front office;
• administration;
• marketing;
• maintenance;
• operator fee;
• FF&E reserve;
• service charge;
• insurance.

The exact sequence depends on the contract.

Top-line split

The owner receives an agreed percentage of gross room revenue and then pays some fixed costs separately.

Bottom-line split

The operator deducts defined expenses first and divides the remaining profit.

A 50% gross split can be stronger or weaker than a 70% net-profit split depending on the expense definitions.

The percentage is almost meaningless without the definitions section.

Occupancy, ADR and RevPAR are different metrics

Occupancy measures the proportion of available nights sold.

ADR is the average daily rate achieved on occupied nights.

RevPAR combines rate and occupancy.

Even RevPAR is not owner income.

It is a hospitality revenue measure before many deductions and before allocation to the individual owner.

High occupancy can be achieved through discounting.

High ADR can coexist with weak occupancy.

A meaningful owner report should show:

• available nights;
• sold nights;
• ADR;
• gross room revenue;
• deductions;
• owner distribution;
• fixed owner costs;
• net cash flow.

Pooling can hide the performance of the individual unit

In a unit-specific model, the owner receives revenue only where the exact unit is occupied.

View, floor, condition and availability can materially affect results.

In a pooled model, revenue is combined and allocated by formula.

Possible factors include:

• unit type;
• unit size;
• available nights;
• view category;
• actual room rate;
• owner-use days;
• pool points;
• percentage of total area.

Pooling can reduce randomness.

One unit does not lose income merely because the reservation system selected its neighbour.

The fairness of the pool depends on transparency.

A premium-view unit may subsidise standard rooms if every unit receives the same allocation.

A unit-specific system may favour hotel-owned inventory where the operator controls booking priority.

In a mixed-use project, the owner should understand whether hotel rooms and private residences are:

• combined;
• separated;
• prioritised differently;
• charged different expenses.

Personal use has an economic cost

Owners often view personal-use nights as free holidays in their own apartment.

For the rental programme, those nights are unavailable inventory.

The impact depends on season.

Owner use during low season may have limited effect.

Owner use during New Year or peak holiday periods can remove the most profitable nights.

Programmes may use:

• annual owner-use limit;
• blackout dates;
• notice requirement;
• priority for confirmed guests;
• housekeeping charge;
• restriction on gifting nights;
• reduced pool share for unavailable days.

A mandatory programme may permit only a few weeks of personal use.

The owner-use clause reveals whether the buyer is purchasing a flexible second home or a hospitality investment.

FF&E is a recurring capital cost

FF&E means furniture, fixtures and equipment.

Hotel rooms require a consistent standard.

Furniture and equipment wear more quickly because of frequent guest turnover.

The contract may require:

• monthly reserve contribution;
• periodic refurbishment;
• brand-approved suppliers;
• replacement of the full furniture package;
• temporary exclusion from the pool where standards are not met;
• special assessment if reserves are insufficient.

The original furniture package is not lifetime equipment.

An investor should include replacement capital expenditure in the return model.

A programme that pays out high distributions while building no reserve may create a large cash call later.

The operator has interests beyond the owner’s apartment

The operator manages an ecosystem that can include:

• hotel rooms;
• residences;
• restaurant;
• spa;
• events;
• retail;
• shared staff.

Its income may include:

• base management fee;
• incentive fee;
• reservation charge;
• brand charge;
• housekeeping;
• food and beverage;
• spa revenue.

The residence owner normally receives only the agreed share of room revenue.

Ancillary hotel revenue does not automatically flow to private owners, even where their guests use the restaurant or spa.

That is standard hospitality economics.

It becomes misleading where the sales presentation implies that the buyer shares in every source of revenue.

The rental agreement should disclose:

• allocation of bookings;
• related-party services;
• expense allocation;
• operator discretion;
• hotel-room priority;
• fee changes.

Guaranteed rent and variable rental pools are different products

A guaranteed-rent programme promises a fixed or formula-based payment under the contract.

A variable pool distributes actual business results.

Guaranteed rent reduces short-term volatility but introduces counterparty risk.

The buyer should identify:

• who pays;
• when payments begin;
• how the guarantee is calculated;
• whether opening delays suspend it;
• force-majeure rights;
• security or reserve;
• termination conditions.

The paying party may be:

• developer;
• operator;
• separate company.

A guaranteed return is not automatically a bank guarantee.

A variable pool provides market exposure but requires transparent reporting and sufficient owner reserves for weaker periods.

Some developments offer a guarantee for the first years and move to a variable programme later.

The long-term analysis must include both phases.

Service charge and hotel operating costs can overlap

A condo-hotel owner may face several cost layers.

Service charge

Common property such as lifts, security, facade and shared engineering.

Hotel operating expenses

Guest accommodation and daily hospitality operation.

Rental-programme fee

Distribution, booking and management.

Shared services

Staff and infrastructure used by both hotel and residences.

The boundaries should be clear.

Guest housekeeping should not be hidden inside the ordinary homeowners’ fee without explanation.

A lift repair should not be charged twice through service charge and hotel expense.

In co-located projects, cost allocation is particularly important.

A low rental-programme commission is not necessarily cheap if many costs are shifted into the service charge.

Operator performance must be measured after deductions

Occupancy and ADR can rise while owner distributions fall.

Possible reasons include:

• higher payroll;
• utilities;
• OTA commissions;
• refurbishment reserves;
• inefficiency.

A useful owner statement should include:

• gross room revenue;
• available nights;
• occupied nights;
• ADR;
• deductions by category;
• management and brand fees;
• owner distribution;
• service charge;
• FF&E reserve;
• budget versus actual.

Without a clear statement, the owner cannot verify performance.

The same lack of transparency will also reduce resale appeal.

Operator replacement can interrupt income

Hotel management and rental agreements have:

• term;
• termination rights;
• performance tests;
• change-of-control provisions.

The operator can leave. The developer can replace it. A lender may intervene. The brand can withdraw where standards are not maintained.

During transition:

• bookings can be cancelled;
• loyalty traffic can disappear;
• staff can change;
• licences can require update;
• the rental pool can pause;
• owner-use rules can change;
• furniture standards can be revised.

Ownership remains. Operating cash flow may stop.

The documents should explain:

• who appoints a replacement;
• whether owners vote;
• whether the developer controls the decision;
• what happens to existing bookings;
• whether the rental agreement transfers automatically.

Condo-hotel resale differs from ordinary condominium resale

The next buyer evaluates both:

1. The apartment.
2. The operating contract.

A strong programme can add:

• established occupancy;
• professional distribution;
• transparent reporting;
• standardised condition;
• remote income management.

A weak programme can add:

• high fees;
• usage restrictions;
• refurbishment obligations;
• operator dependence;
• seasonality;
• difficult financing;
• opaque pool rules.

The buyer pool may be narrower than for a normal apartment.

An owner-occupier may reject a mandatory programme.

An investor will request hotel performance data that is irrelevant to a conventional condo.

The unit should therefore be valued using both property comparables and operating evidence.

What to verify in Cambodia

A specific Cambodian project should be checked for:

• ownership structure;
• individual title route;
• tourism licence;
• licensed operator;
• hotel or accommodation classification;
• rental agreement;
• management agreement;
• mandatory or optional status;
• owner-use rules;
• revenue definitions;
• expense definitions;
• pool-allocation formula;
• FF&E reserve;
• service charge;
• shared-services costs;
• term and termination;
• replacement-operator process;
• tax responsibilities;
• resale transfer of programme rights.

Cambodia’s Law on Tourism requires licensing of tourism businesses and provides for accommodation classification.

The exact approvals depend on the project structure and date.

A marketing label such as serviced apartment does not prove that the required tourism or accommodation permissions exist.

A tourism licence does not prove owner profitability.

Worked owner calculation

Assume:

• 200 nights available after owner use;
• ADR: USD 120;
• occupancy: 60%.

Sold nights:

200 × 60% = 120 nights

Gross room revenue:

120 × USD 120 = USD 14,400

Assume the owner receives 50% of gross room revenue:

USD 14,400 × 50% = USD 7,200

The owner then pays:

• service charge: USD 1,800;
• FF&E reserve: USD 700;
• insurance and other costs: USD 500.

Net cash flow before tax and exceptional work:

USD 7,200 − USD 3,000 = USD 4,200

This is an illustration, not a Cambodian market return.

It demonstrates why “ADR USD 120 at 60% occupancy” is not the same as USD 14,400 of owner income.

A bottom-line split can produce a different result.

Who may suit the hotel model?

A condo-hotel or rental pool may suit an investor who:

• accepts variable income;
• does not need unrestricted use;
• understands hospitality reporting;
• trusts the operator;
• budgets for refurbishment;
• maintains a weak-season reserve;
• purchases at a price reflecting fees and restrictions.

A buyer seeking a normal home or a simple long-term rental may find a mandatory pool unnecessarily restrictive.

Potentially high revenue should not hide lower owner control.

Conclusion

Condo-hotels, serviced apartments and branded rental pools are not the same product.

A condo-hotel combines individual ownership with hotel operation.

A serviced apartment may be one integrated rental asset with no individual owners.

A rental pool is a contract for operating and allocating income and can appear in several types of property.

Owner performance depends on much more than occupancy and ADR.

The critical factors include:

• revenue definition;
• operating expenses;
• pool formula;
• owner-use restrictions;
• FF&E reserve;
• service charge;
• tourism licence;
• operator strength;
• replacement process.

The owner acquires real estate but earns through a company and contract whose term may be much shorter than the life of the building.

The operating documents should therefore be reviewed with the same care as the SPA and title.

Sources

1. Kingdom of Cambodia — Law on Tourism, 10 June 2009, unofficial English translation published by the Council for the Development of Cambodia.
2. Savills — Rental Programmes, 12 October 2023.
3. Savills — Annual Report: Branded Residences 2025/2026.
4. Marriott International Development — Apartments by Marriott Bonvoy.
5. RICS — Valuation of Licensed Leisure Properties, 2nd edition, April 2025.

Frequently asked

Are a condo-hotel and a serviced apartment the same thing?

No. A condo-hotel normally combines individually owned units with hotel operation, while a serviced apartment building may be owned entirely by one operator or function as a conventional rental property.

What does an owner receive in a rental pool?

The owner grants the operator the right to rent the unit under agreed rules and receives a share of revenue or profit after the deductions stated in the contract.

Is project occupancy the same as occupancy of the individual apartment?

Not necessarily. Revenue may be allocated by actual unit nights, room category or a pooled formula, so the calculation method must be set out in the agreement.

Can the owner stay in the apartment whenever they choose?

That depends on the programme. Owner use may be limited by annual caps, blackout dates, advance-notice rules or a requirement to remove the unit from the rental pool.