What is a Condo Hotel? One or more buildings designed and operated as hotel where some or all of the...
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Transcript of What is a Condo Hotel? One or more buildings designed and operated as hotel where some or all of the...
![Page 1: What is a Condo Hotel? One or more buildings designed and operated as hotel where some or all of the rooms are sold as condominium units and the buyers.](https://reader036.fdocuments.in/reader036/viewer/2022082710/56649dc95503460f94ac0273/html5/thumbnails/1.jpg)
What is a Condo Hotel?
One or more buildings designed and operated as hotel where some or all of the rooms are sold as condominium units and the buyers are offered a rental program
![Page 2: What is a Condo Hotel? One or more buildings designed and operated as hotel where some or all of the rooms are sold as condominium units and the buyers.](https://reader036.fdocuments.in/reader036/viewer/2022082710/56649dc95503460f94ac0273/html5/thumbnails/2.jpg)
Design Speed Bumps• Size of the unit• Number of bedrooms• Lockouts• Design elements to discourage long term occupancy
![Page 3: What is a Condo Hotel? One or more buildings designed and operated as hotel where some or all of the rooms are sold as condominium units and the buyers.](https://reader036.fdocuments.in/reader036/viewer/2022082710/56649dc95503460f94ac0273/html5/thumbnails/3.jpg)
Operational Speed Bumps• Allocation of expenses• “Fair” rental rotation• Individual unit accounting• Owner occupancy policies• Stability in rooms inventory• Who is the “owner”?
![Page 4: What is a Condo Hotel? One or more buildings designed and operated as hotel where some or all of the rooms are sold as condominium units and the buyers.](https://reader036.fdocuments.in/reader036/viewer/2022082710/56649dc95503460f94ac0273/html5/thumbnails/4.jpg)
Allocation of Expenses – The Rubik’s Cube
Range of Allocation Options:• Condominium common expenses – all unit owners pay pro rata share• Rental Program Common Expenses – only units in Rental Program pay pro rata share• Non-rooms revenue generating expenses – paid by owner of the revenue source• Non-condo shared expenses for shared areas – allocated between unit owners and hotel lot owner
![Page 5: What is a Condo Hotel? One or more buildings designed and operated as hotel where some or all of the rooms are sold as condominium units and the buyers.](https://reader036.fdocuments.in/reader036/viewer/2022082710/56649dc95503460f94ac0273/html5/thumbnails/5.jpg)
Condo Structure Speed Bumps
• The “air only” condominium• Common elements v. shared areas• Approval of budgets• Condominium litigation opportunities
![Page 6: What is a Condo Hotel? One or more buildings designed and operated as hotel where some or all of the rooms are sold as condominium units and the buyers.](https://reader036.fdocuments.in/reader036/viewer/2022082710/56649dc95503460f94ac0273/html5/thumbnails/6.jpg)
Unit Sales Speed Bumps• SEC enforcement actions
• “Sale of securities” lawsuits by Unit owners
• Disconnect between unit sales prices and value as hotel rooms
• Local regulations that restrict owner use of units
![Page 7: What is a Condo Hotel? One or more buildings designed and operated as hotel where some or all of the rooms are sold as condominium units and the buyers.](https://reader036.fdocuments.in/reader036/viewer/2022082710/56649dc95503460f94ac0273/html5/thumbnails/7.jpg)
Rental Program Speed Bumps
• Who “sells” the rental program?• Securities violation for selling an “investment”• Maintaining brand standards• Managing unit owner expectations