Condo-hotels are back in the development game, thanks to positive new SEC laws, strong destination markets and the ever-present search for financing.
By BRENDAN MANLY/HOTEL NEWS NOW
Published August 19, 2014
REPORT FROM THE U.S.—Developers of upscale properties in key markets are increasingly returning to the condo-hotel concept for new projects, thanks in part to recent legislation impacting the sale and marketing of the units. And at a time when development capital is still scarce, hoteliers are finding that the ability to pre-sell condo units for a proposed project can make all the difference in getting investor approval.
Condo-hotels—properties where individual hotel room units are sold to investors, who may live there part time and also place the units in a rental program—were a hot commodity up through the mid-2000s, then plummeted with the recession. But recently they’ve made a healthy return in markets such as New York City, Miami and Los Angeles, with several more high-profile projects in the early stages. To read the entire article, click here