Anyone invest in Condo Hotels?
 

Pretty interesting concept, the building is split between hotel rooms and condos and when your not occupying the condo that you own, you can participate in earning revenue through having the hotel rent your room out. Although I haven't seen specific revenue potential, I'm curious to see if anyone here owns one and what your experience has been with it?

A few things that I can't help but wonder though, is when the hotel has vacant rooms they probably have no interest in renting your condo out (not good as a condo owner). Also, which condo gets rented out when someone checks in and is it as easy as bribing the front desk clerk to increase your rentable time?

If anyone has experience with this, I'd love to hear your thoughts on this concept.
WG

sounds like xap's old crib ... pangea or whatever :) worst case I could see is that if your room doesnt get rented enough by the hotel, you rent it out urself (assuming sub-lets are allowed)

Pantages, but those are long term rentals via the residences at the hotel, I don't believe they're condos.
WG

Charles,
I do that down at the Turnberry (Signature) at MGM Grand. It's labeled as a "Condhotel", but the rooms are not altogether in one bldg. Signature is 3 different bldgs. behind MGM. My condo is rented so much, I can't even use it. Pisses me off sometimes, but it sure is nice not having to pay for that investment.

The experience, has been very easy. They rent it for you, collect the cash, and deposit your cut.

That's awesome. Is it based on a revenue sharing model or flat rate for the management of your property? Do they evenly split the usage among other condos in the building or how is it they decide which units get rented out when they're not at 100% capacity? Thanks for the help Timbo!
WG

Interested in more info as well. :)

Some family friends have one in Ole Mehico on the beach. Annually they turn a very small profit, but the real bonus is a free condo on the beach.

I don't own any of those, but they are very common in Hawaii. In Hawaii it usually isn't a traditional hotel though, its a "hotel", (basically an apartment building outfitted like a hotel) where your unit goes into a rental pool. So basically its like owning a hotel room that you can rent out. Not really something you'd want to live in, but a neat concept if you like having a place to stay for a month or so at a time then rent out when you're gone. :2 cents:

It's becoming fairly common here in Australia where they call them resorts. A friend of ours managed one for a while and she seemed to think that they worked ok for owners.

However some owners seemed to think that their condo/apartment should have a 100% occupancy rate whilethe reality was something a little different.

One group of owners may have got badly burned here in town - they all forked out something close to half a million each buying off the plan only to find that the resort opened 5 months late.

I heard one of the owners lamenting that he was the only retiree he knew with a half million dollar debt that was generating absolutely no income.

the mgm one has been doing well since its been completely built, i just heard recently that the W hotel one is going to fall through. As the W does not want to do a condo hotel

wouldnt really be like having a condo, you couldnt leave you stuff there because strangers would be going in your room. and i wonder what happens with people fucking up your stuff or whatever.

I know someone who had that in Tremblant... he could sub-rent it himself. But I don't know the specifics.

I was going to invest into one of these but didnt.
My first option was a new place being built at Blue Mountain. The fee that the hotel takes for maintaining your place is around 25% which to me sounded ridiculous. It cut into the profit way too much.
Second option was 1 King West in Toronto.
My girlfriends cousin owns a place there that is rented by the establishment and she said its a disaster to work with them. The fees are high, something about the property tax came out to more then it would with residential (not sure exactly what the case was) and the bottom line $ amount that she got at the end of the day isn't the greatest.
I had a place near York University which I rented and I sold cause I hated dealing with students. But financially it was by far the best bang for the buck I could find in the Toronto area. I just sold and brought all the #s to my lawyer and even she was shocked at home much the place made in 2 years.
If you have any questions feel free to hit me up at 173 198 596

You stick to the Vancouver market :)
WG

25% doesn't sound too unreasonable, especially if there's lots of onsite amenities that people can use like gyms, pools, restaurants, etc. Is 1 King West doing this concept, I thought it was strictly a mix of hotel suites and residentials (where the hotel doesn't manage the condos).

To me, it seems like a great investment opportunity, but only in an area where you can get high turnover, like Vegas for example. I don't see this being very profitable in Toronto by comparison in the winters but summers should do well, especially when there's a festival or indy.

WG

If you feel like investing in London hotels, check out GuestInvest.com. It's not exactly a condohotel though, just a hotel of which you own a room.

There is one in Montreal too but as the owner you can only stay in it for like one month per year, ther rest of the time it is rented and you get a return on the net.

Thats the idea, to rent it out as much as possible and when its not being rented out, you can stay there for free. Have a reference to the montreal condo hotel?
WG

Looking into one myself, I think a few people here know which one I'm talking about

Are there any new buildings going up in Montreal with this concept?
WG

basicly your just buying a hotel room right? because you cant leave your stuff in it, and i assume they decorate it for you as well?

id pick a better vacationy destination then vegas, an island somewhere would seem better as far as all around usefulness.

The Westin Montreal is being built. If you hurry, you may still purchase a condo....

Just came back from Vegas last week. A few hotels had that option, and I was thinking it would be the best place to make such an investment, rooms in Vegas are always booked :)

Do they have a sales site or contact?
WG

there are one or two of these type of buildings in my town, and the condos are highly sought after. I would imagine it is a good idea if the area is a popular tourist destination.

Dont know any one who is doing that, but I know a few places to buy some ocean front ones in Baja.

If anyone is interested, hit me up, and I will tell you about them,

It seems to me every new hotel is setup this way. Even Donald Trump's new hotel in SOHO in Manhattan is going this route.

South Beach in Miami is completely overrun with this type of condo as well.