• Your own apartment in Łeba, Zakopane, or Mikolajki plus rental income? UOKIK is checking whether offers for 10 commercial investments have violated consumer rights.
• The Authority is investigating whether entrepreneurs offering units in condo- or aparthotels provide full and reliable information about the investments.
• Two decisions of President of UOKiK on the company Termy Uniejów - fines totalling more than PLN 200 thousand.

The term condohotel was coined out of a combination of the words condominium (a collection of residential units) and hotel; similarly, aparthotel combines the words apartment and hotel. These are forms of alternative investments in commercial real estates. Consumers may be faced with an offer to buy their own apartment, usually located in attractive tourist locations. The buyer of such a commercial real estate may use it for specific time of the year and for the rest of the time it is rented out in a hotel system. Such premises are commercial in nature and in most cases are not protected by the provisions of the so-called Developer's Act.

Too extensive promises?

Apartments in unique holiday destinations, luxury facilities, high standard of finishing, often with extensive spa-type facilities - such proposals can attract consumers’ attention. UOKIK has conducted a preliminary survey of available condo and aparthotel listings on the market. The marketing message aimed at consumers and the information it contained regarding, among other things, the investment, how it is to be implemented and financed, and the planned profits, formed the basis for President of UOKIK to initiate 10 preliminary investigations. They are intended to make a preliminary determination of whether investors have been given their full due rights in terms of consumer protection.

The UOKIK investigations concern the following investments projects:

Apartments in Swieradow (ABInvestHouse), Mercure Szczyrk Resort (Beskid Resort Properties), Solmarina Gdansk (Dekpol Developer), Forest Park in Swieradow Zdroj (Forest Park D. Surynt R. Urbanik), Linea Mare Pobierowo (Morris & Lloyd Broker), Saltic Apartments in Leba (Oak Property), Witkac Residence Zakopane (Platan Hotels & Resorts), Radisson Blu Resort in Miedzywodzie (Sea Invest Gabryjelski Kocwa), Zdrojowa Invest in Dzwirzyn (Vacation Club 2), Brzegova in Mikolajki (Vanto Estate).

What will UOKIK investigate?

UOKIK has been analysing the information posted on websites and in sales materials such as brochures available at points of sale. In addition, the subject of analysis are contracts with condo- and aparthotel providers (developers, facility operators) and agreements for further lease of purchased units. The Authority verifies the stages of individual investments and the entrepreneurs associated with the projects - sales bidders, contractors, developers, investors or operators.

Potential risks associated with investing in condo- and aparthotels.

The purpose of the analyses is to determine whether entrepreneurs offering condo- and aparthotel investments reliably inform buyers about all aspects and conditions of the transaction. The preliminary observations may raise questions about the overemphasis on the assets and benefits of investments, without attention to possible risks. The way profit is presented may be part of a marketing strategy that does not include in its communications such factors as seasonality of rent or maintenance costs, through which profitability may be much lower than declared. 

- Before deciding to invest in commercial premises, it is worth reading the terms of such an offer very carefully. Let's pay attention to the method of financing, collateral and whether the projected profit is not based on an unrealistic scenario. Only a full, reliable and comprehensive analysis allows you to make an informed investment decision which should take into account the risks acceptable to consumers of losing the funds entrusted to the entrepreneur or lower than expected returns on capital. We urge consumers to be cautious and prudent when choosing this type of investment for years to come - says President of UOKiK, Tomasz Chróstny. 

Condo- and aparthotels - other actions by UOKIK

The preliminary investigations currently underway are a continuation of many of the UOKIK's activities in the alternative investment sector, particularly those involving commercial real estate. As early as September 2019, UOKIK and the PFSA issued a joint warning against the risks that come with investing in aparthotels and condohotels. These risks were also the subject of the "Count and Don't Miscount" public awareness campaign. In May 2022, President of UOKiK, Tomasz Chróstny, issued a decision against the company CGA Invest which offered units in the Black Pearl condohotel in Sienna. In the offer in question, he obligated [the company] to change its practices of misleading customers about the safety of the investment in the real estate, the amount of profit and the financing model, and to compensate consumers for their consequences. In this year's investment decision on the Ustronie Morskie Residence (Burco Development) President of UOKIK obliged the entrepreneur to change unfavorable contractual provisions and to compensate consumers financially.

Decisions on Uniejów Thermal Baths

President of UOKiK has also issued two decisions against Przedsiębiorstwo Gospodarki Komunalnej Termy Uniejów and imposed fines totaling more than PLN 200,000 (PLN 200,410) on the company. The first decision concerned the company's use of four unauthorized provisions in contracts with investors, e.g. the final area of the premises could differ from that assumed in the contract by up to +/- 5 percent and this did not affect the price of the premises. Once the decision becomes final, these provisions will be ineffective and should be treated as if they have not been included in the contract at all. In the second decision, President of UOKiK has found that the company had provided potential investors with false information about the assumed profit before concluding the agreement, overstating its amount, which has misled recipients about key data in the decision-making process. Both decisions are not final.

Consumer Support:

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