In one of the posts at the Hotel Law Blog, Jim Butler discusses the fundamentals to a successful condo hotel project. Among other things, he stated that to be successful, one must have the following factors:

1. economic fundamentals;
2. condo hotel program’s design;
3. condo hotel regime that will ensure adequate hotel room inventory;
4. structure and documentation to assure appropriate and consistent quality; and
5. not locking down the structure until you have a viable regime design.

He also stated at the article:

First and foremost, we want to know whether the condo hotel can operate profitably. A condo hotel may help liberate trapped capital, but it’s not a cure for a sick hotel that can’t generate an operating profit. Simply put, if it doesn’t work as a hotel, it’s not going to work as a condo hotel.

I agree wholeheartedly to this statement because afterall, for investors, purchasing a condo hotel is not just because they want to have a vacation home in some luxury hotel for their family. They would also consider the return for all of their investments. If the hotel could not prove to the investors that they are not just giving away their money in a fruitless venture then there is no point in turning it into a condo hotel.

If you liked what you've read, why not subscribe to our feeds, subscribe through email or add us as your favorite blog at Technorati to get the latest updates on condohotels.

Other Condo Hotel Entries

• Benefits of a Condo Hotel Investment
• Condo Hotels Versus Time Shares
• Condo Hotel Trends - A Look at the Big Picture in Vacation Home Ownership
• HotelCondo Properties Needs Unique Management
• Why Own a Condo Hotel?
• Resort Condo Hotels As A Vacation Home
• Condo Hotel Resort Project in South Beach, Florida
• The Rise of Condominium Developments
• Florida Project, VIP Program
• Creative Financing in Real Estate