Who pays for vital improvements?
A sum equivalent to 5% of the total revenue is transferred into a Reserve Fund for Replacements, so as to cover future vital improvements subject to the conditions foreseen in the Tourism Transaction Contract. Tourist Apartment and Hotel Room refurbishment every 5 to 8 years is normal practice in the hotel industry. The management company predicts that his sum will cover refurbishment and any other such costs related to the apartments. However, in the case that the reserve fund for replacements is insufficient, owners will be requested to cover this insufficiency, in accordance with same percentage held in the percentage of the Net Revenue of the Transaction.
