Miami Beach Condo-Hotels

What Is A Condo-Hotel?

You've already learned about the abundant and compelling reasons why everyone wants a piece of Miami Beach real estate [If you haven't, click here]. One of your most important decisions as a potential buyer is what type of property to purchase. As an investor or visitor to South Florida, a condo-hotel may be what you're looking for. Condo-hotels have become one of the most popular trends in vacation home ownership in recent years. You can acquire a luxury Miami Beach condo-hotel suite at a world-class resort and have the option of placing it into an organized rental program. Of course, as with any real estate purchase, there can be risks.

btn-condogallery
landing-divider.jpg

Given the lack of Miami Beach condo-hotel information available to most buyers, the newness of the concept, and the complexity of it, I'm bringing you this comprehensive overview to increase your awareness and understanding of the condo-hotel business model and the opportunities in Miami Beach real estate.

Hotel developers like the concept because they can share their financial risk with future condo unit owners. Miami Beach condo-hotel owners like it because they can acquire a luxury residential suite at a world-class resort, use their units for a specified period of time, and have the option of placing them into an organized rental program to potentially generate revenue while they're away.

Sometimes Miami Beach condo-hotels are called hybrids because they combine an investment with second home or vacation home property features. Many developments offer an expanded array of hotel services available to owners when they're in residence. This could include valet, concierge, and maid and spa services, among other resort-style luxury benefits. The rental dollars you may generate from ownership in a Miami Beach condo-hotel can make this option appealing.

Available in both new and historic buildings, condo-hotels are usually large, high-rise getaway destinations. Every major player in the hotel industry has looked at condo-hotels, condo-hotel conversions, and condo-hotel construction to see if it fits their portfolios. Operated by such notable names as Four Seasons, Ritz-Carlton, Starwood, Hilton, Regent International Hotels, and Bulgari, condo-hotels are traditionally found in seasonal resort areas but are also popping up in urban centers like New York, Chicago, and Atlanta.

South Florida has one of the greatest selections of condo-hotels in the country and has been a popular destination due to domestic and international demand for second or vacation homes and Latin American interest in the historically secure U.S. real estate market. The Orlando and Miami-Fort Lauderdale areas each could have as many as 10,000 condo-hotel units in the next few years, up from less than 1,000 units five years ago.

Typically, the operator of a Miami Beach condo-hotel rental program, in exchange for a share of the revenue, markets your unit as a hotel, takes reservations, and runs the front desk. The management company also provides the services hotel guests would expect, such as housekeeping, food and beverage, and concierge.

Miami Beach condo-hotels differ from Miami Beach condos in a number of ways, including the extent of your voting rights and your access to property books and records as a condo-hotel unit owner. Read more here.

A Typical Miami Beach Condo-Hotel Agreement Addresses:

Whether placing your unit in the hotel's Rental Management Program is mandatory or voluntary.
If the Rental Management Program is voluntary, what your requirements are if you opt in, such as having to buy the hotel's approved furniture package.
If you enter into the Rental Management Program, what happens to your contract if you sell your unit.
Maintenance Fees and/or Management Fees, and what they cover.
Usage agreement, which outlines the frequency, notice requirements, reservation system, and any occupancy restrictions for the unit owner.
The percentage of revenue the condo-hotel owner will receive.
The percentage of revenue the hotel management company will receive.
The typical deductions before each party receives its share.
Who pays for taxes, insurance, capital improvements, and debt service.
Who pays for operating expenses such as housekeeping, front office, administrative, and marketing.

Read More About Miami Beach Condo-Hotels

Tell Kevin More About Your Miami Beach Condo-Hotel Objectives

Some Miami Beach condo-hotels sell out in a matter of days or a few weeks. Tell Kevin more about your buying objectives, and sign up for condo-hotel announcements now.

Kevin Tomlinson is an independent Realtor associated with ONE Sotheby's International Realty. Kevin recommends that buyers, sellers, investors and renters of/in real estate consult legal, financial and investment professionals for specialized advice.

Learn How to Avoid Paying Too Much In Miami Beach's Competitive Real Estate Market
Share |

Select a Miami Beach Condo

gfxbtn-enews.jpg
kevin tomlinson kevin tomlinson
Kevin Tomlinson
P: 305.982.7560
F: 305.675.8570
Send Email


Google+
 

Questions? Just Ask!
Name*
Email*
Phone
Comments