Warren Hickernell
Realtor-GRI
"Top Producer"
Prudential Palms Realty

Warren@RealEstateInSarasota.com

(941) 232-5738

Hotel to Condo Conversions -
Frequently Asked Questions

What is a Condo Hotel?

Condo hotels have condo’s that are sold to individual investors who may use their unit as a vacation retreat whenever they like. When they choose to not stay at their unit, they have the option to place it into an organized rental program. The rental revenue, which is shared with the management company that operates the property, helps defray the owner’s expenses.

Benefits of Condo hotel buyers/owners:

Owners have a boutique upscale vacation home in a great location at their disposal. The owners may use it personally or for friends, visitors or relatives. Those who choose to place their unit in the property’s rental program receive revenue that can defray the expenses of ownership.

Condo Hotels offer hassle free vacation retreat ownership. The on –site management company takes care of all the upkeep, maintenance and interaction with renters. The owners reserve the right to resell their unit at any time. The Owners keep any profits derived from appreciation. Therefore condo hotels combine vacation home ownership with investment potential.

Can a developer guarantee rental income or appreciation?

No, they can not do-so. It is against the Department of Real Estate and Securities and Exchange Commission’s rules and regulations for a sales associate to share any information about any potential rental management options with you. This information can only be obtained from the management company representatives directly.

Generally, it is best to consider a unit purchase to be similar to a second home or vacation home. Choosing a desirable location where there is likely to be appreciation of the investment over the years. As an extra added bonus, owners who choose to participate in the rental program may receive income from its rental to defray ownership cost.

Are all condo hotels new?

There is a wide mix of ground up newly built hotels and those that were originally hotels and have been upgraded and converted into condo hotels. Due to the fact that desirable land locations are so limited and costly, it is more likely that condo hotel conversions will soon outpace new construction. This also allows the developer to preserve the old Florida elegance of smaller boutique hotels while completely upgrading the rooms, furniture, facilities and overall appeal.

Who buys condo hotel units?

Buyers come from all over the U.S., Canada, and overseas. The combination of the weak dollar and high property values overseas, many foreign investors find U.S. properties attractive. They like the idea of owning a hassle-free vacation home in a prime location in the U.S. that can generate revenue when they are not using it and is likely to appreciate in value over time.

What about financing a condo hotel unit?

Most lenders are now familiar with condo hotel units and see them as viable real estate investments. Often the property sales staff or real estate broker can recommend reputable lenders who are familiar with the property and how it operates.

More Questions?
Don't hesitate to contact me:

Call 941-232-5738
Email to Warren@RealEstateInSarasota.com