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The Critical Relevance of National Association of Condo Hotel Owners

By Dante Alexander

According to Smith Travel Research, as of July 2006, condo hotel rooms made up 102,142 rooms or 19.5% of the hotel rooms currently under development in the U.S. While this is concentrated in the top markets for the condo hotel product, such as Las Vegas which represents nearly a third of this development, the entire segment is certainly enjoying the boom.

This rapid rise in condo hotel development is causing some speculation about the segment’s long-term viability. The key to its success, however, lies in carefully managing and satisfying the expectations of all the constituencies involved, developer, lenders, and ultimately for sustainability the condo unit owner.

Is it so unrealistic to fulfill the expectations of all of these disparate parties? The answer is no, but communication is the vital component and providing a forum for this communication is one of the core functions and founding principles of National Association of Condo Hotel Owners, formed early in the year.

As a non-profit trade organization the association is committed to the overall success of the condo hotel industry by ensuring that the segment grows in a healthy and sustainable manner. The Association’s mission is to represent and promote the segment by fostering best practices and a standardized code of business ethics, including its unique review system based on “unit feasibility” assessments and disclosure to more than 5000 potential “unit owner/buyer” members, supporting trades, and participating properties.

Today, 90% of all perspective condo hotel buyers are interested in the rental program, associations polls indicate unit owner participation in the rental programs is expected to compensate for 50-75% of annual ownership expenses, excluding mortgage. That should be good news to developers who worry that their projects generate incomes beyond annual ownership expense levels. Truly in this regard the statement of “under promise and over deliver” takes on a whole new dimension when we are talking about the potential for SEC involvement.

The National Association of Condo Hotel Owners represents an opportunity for developers to bridge the gap through the associations resources; Associations Certified Buyer Disclosure©, depicting an unbiased accurate comp set of historical rates, occupancies, and Rev Par’s that developers may share with buyers; The Associations Rated Property Reviews©, providing in depth considerations of the properties commercial sustainability, allocation effectiveness, and unit economics. Developers that take advantage of the Rate Property Review product are provided added marketing advantages of license to use the associations brand and rating in marketing materials, publication on its website, and e-blast access to its now over 5000 perspective and existing buyer members. Developers are also encouraged to seek the associations Property Approval as a resource during conceptual development to refine products and methodologies. The detailed analysis, only available to the developer includes supporting analysis, methodologies, and competitive information based on present day consumer input and professional best practices and methodologies.

The developer, if prompted by the prospective unit owner, may also refer them to the Association for membership and access to property and market reviews.

The Association also provides developers access to information regarding projects by property, market, and segment as well as referrals for development opportunities, funding, networking, and advocacy on behalf of industry stakeholders with federal, state and municipal authorities. It also cooperates with existing industry associations in developing segment specific training and certification programs in sales, management, development, and legal practices. Looking forward, it will create and support conferences and committees for the industry to develop an identity, business code of ethics, and to reward excellence.

The National Association of Condo Hotel Owner’s (www.nacho.us) also lends critical support to the condo hotel industry in a number of other ways also, such as: education, training and certification; legislative advocacy, public relations, networking, and research; and other services designed to promote the long term health of the industry.

Dante Alexander
President & Chief Executive Officer

Dante Alexander brings more than 20 years of senior leadership experience in the hospitality industry, including the areas of finance, operations, and development to the National Association of Condo Hotel Owners. His strong leadership skills are linked to his broad range of experience with Starwood Hotel & Resorts Worldwide gained over the course of his eight year tenure, where he is credited with enabling the company’s explosive growth from 33 hotels in 1996 to one the worlds leading companies. He also brings tremendous confidence and commitment to the condo-hotel segment.

Article Source: Dante Alexander