Condo Hotels

I am wondering if anyone out there has invested in condo hotels. I would like to know if the income supports the high asking price by the developer. Due to SEC rules, the hotel management company does not provide any financial infomation which makes the decision making process very difficult.
Please share your experience…

I am also very interested in peoples’ experiences regarding condo hotel. Has anyone made enough from rental income to cover the monthly mortgage payments?

I have not looked at the specifically, but I have penciled out the numebrs on plenty of vacation tpye rentals (mtns, beachs, high end, low end, any end). It always seems to be cash flow negative because what kills you is the following 1) high vacancy 2) high fees and commissions for placement of clients 3) high repairs; place must perfect or clients are unhappy 4) high discount in off-season to get revenue.

Find out what your fees and expense are and then figure out how many nights a month you will need to break evem. If you need occupancy above 50%just break even, then I’ll venture your be feeding that puppy every month…plus what is your exit strategy…short term hold? long term hold? (I have no opinion there).

Some food for thought.

can you explain that? That make it sound like it not fractional ownership or holding title to the condo itself, but you are buying stock in a corporation. Is that right?

Nope, he is saying the exact opposite. Developers are aware of the potential security law issues can arise of the sale of the condo hotel nits. In order to avoid coming under the scrutiny of any federal or state securities agencies, developers refrain from seting rental revenue expectations for prosepctive buyers. Instead, the developer’s emphasis in the condo hotel’s marketing materials and sales presentations is always on the real estate itself, not the potential rent revenue.

Quote from #7, http://www.condohotelcenter.com/condo-hotels/faqs.html

This is why we are looking for people with personal experiences. The people who own condotels could tell us weather or not their rent revenue covered their monthly payment or not.

I believe that if you buy a condotel in a hot enough market such as Miami, you would be able to fill that room enough to make a profit. But I need someone to verify this claim since I am new to condotels.

No one on this forum has purchased a condotel?