Condo Hotel Overview: There is
a spreading enthusiasm about the condo hotel concept. More buyers
are recognizing the benefits of owning a hassle-free vacation
home with numerous amenities and the potential to appreciate.
Best Time to Buy: The best time to purchase
a condo hotel unit is in early pre-construction phases. Most
properties experience three to six price hikes before completion.
The buyers who get in when the condo hotel first comes on the
market, or even better during the "whisper campaign"
phase realize the greatest appreciation of their condo.
Hot Areas: Prime vacation destinations continue
to be the most popular areas for condo hotel development. Buyers
want a location that is convenient to local attractions, shopping,
restaurants and a major airport.
Unique Condo Hotels: Not all condo hotels
are brand name high-rises in typical vacation destinations.
We’re seeing good quality, independently owned properties popping
up in unique locations as well.
The Selling Process: A lot of properties take
reservations of more than half the total project long before
they've even prepared their purchase contracts. This means that
many of the best units are reserved months before any money
changes hands and often before even the first spade of ground
has been turned over.
Those early investors often see significant appreciation on
their investments!
Prices: Like anything for which there is more
demand than supply, prices keep going up, up, up. Developments
typically implement three to six price hikes of 5% to 10% each
from the time they start selling until they sell all of the
units.
Developers are no longer discounting prices at the beginning
of the selling process when they are anxious to get a few sales
under their belt. This used to be common practice; it is no
more because demand is so great.
Quantity: According to new research by Lodging
Econometrics, a hospitality research group out of Portsmouth,
NH, the market for Condo hotels is expected to stay hot.
Finally, another reason why we're seeing conversions of existing
hotels and resorts to condo hotels is simply that there is limited
desirable land on which to build new structures.
Developers: Some of the biggest names in the
hospitality industry are becoming involved in condo hotels Donald
Trump, for example, now has six condo-hotel projects in the
works in Chicago, Fort Lauderdale, Miami, Phoenix, Las Vegas,
and Dubai.
The future of the Condo Hotel and Fractional Market: 75 million
baby boomers in the US retire in the next 15 years. If just
5% choose to own just one condo hotel unit or fractional as
a seasonal second or third residence, 3.75 million units will
be sold or 250,000 annually.
Advice to New Buyers: How can buyers choose
a condo hotel unit that will be a good investment? It's if they
can work with a real estate broker who specializes in condo
hotels and can make them aware of the pros and cons of all products
currently on the market. Aside from that, they would look for
the following elements.
- Location
- Franchise
- Management Company
Check out Grandview
on the web
Article taken from Condo Hotel Center.
|
