Condo Hotel projects are on the rise. From skyscraper hotels to luxury resorts, condo hotels dot the landscape of popular vacation destinations, such as Florida and Las Vegas. And big hitter personalities like George Clooney and Donald Trump, wanting to capitalize on its popularity, can?t wait to attach their name to a condo hotel project. Even Nicky Hilton is jumping into the condo hotel craze. Her boutique style condotel, befittingly named Nicky O, opens this November in Miami, and she has plans for another condotel in Chicago.
But because a star is successful, does that assure his/her hotel will be, too? Steven Roszell, owner and broker of CondoHotels.com and HotelsforSale.com, doesn?t quite think so. ?A big name on a project does not guarantee success,? says Roszell. ?Ivana Trump, George Clooney, Michael Jordan, and even the famed Hard Rock Las Vegas project are some of the most recent examples of scrapped projects.? Roszell cautions potential buyers not to invest in a condo hotel solely for its illustrious name. ?Big brands, such as Marriott, Hilton, and Four Seasons, and seasoned developers and management companies are a better indication of a project?s success. This is their business---they?ve been doing it for years,? Roszell adds.
The condo hotel?s location also does not predict its success. Orlando, the world?s top vacation destination, has reached its saturation point with condo hotels. ?It may come down to there is too much supply,? says Roszell. ?If investors buy with the intent of flipping the property to make a fast buck, the Orlando market may not be for them.? Roszell also adds, ?Investors anticipating a high rental income may need to rethink Orlando for the time being. There's potential for too much supply.
Roszell advises his clients to look at three factors when considering a condo hotel: location, growth, and future income. ?We tell investors that a condo hotel purchase is a lifestyle investment. Buy in locations where you want to vacation for the next 5 to 25 years.? Roszell also notes how condo hotels have become prevalent in major metropolitan cities, such as Boston, Chicago, and New York. ?There is a limited amount of prime location areas that can be built upon in these major cities, and in time it?ll be harder to get a room during peak season in those locations.?
Condo hotels or condotels are hotels that convert a portion of rooms into condominiums and make them available for purchase. Once a property is bought, owners may enjoy their new luxury condo and/or choose to rent it. Owners receive a percentage of any rental proceeds and hotel management takes care of maintenance and cleaning.
Steven Roszell is owner and operator of www.CondoHotels.com and HotelsForSale.com and specializes in the sale of Lodging and Hospitality properties around the world. Based out of Denver, Colorado, Steve has been hailed by the Denver Business Journal as one of Colorado's Heavy Hitters.
Steven brings 15 years of real estate knowledge to his businesses. Being a licensed real estate broker in Colorado and Florida, Steven has been able to build a vast network with both real estate developers and owners. Throughout his career, he has worked with several high profile clients including Turnberry Associates, Millennium Partners, W Hotels, WCI Communities, Citibank, and the United States Government.
Steven lives near Boulder with his wife and three children.
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