Developers Cash In on Advanced Funding of Condo-Hotels

April 1, 2005
The latest trend in construction seems like a financial sure-bet for developers as well as buyers. Condo-hotels are popping up everywhere from New York to Las Vegas, and especially in southern Florida where 30 projects have been finished, are being converted, or are in the planning stages. Developers are interested because of their up-front funding. By selling ownership of the rooms in advance, they

The latest trend in construction seems like a financial sure-bet for developers as well as buyers. Condo-hotels are popping up everywhere from New York to Las Vegas, and especially in southern Florida where 30 projects have been finished, are being converted, or are in the planning stages. Developers are interested because of their up-front funding. By selling ownership of the rooms in advance, they secure more than enough money to build the hotels without the risk of making loan payments in the turbulent first years of a hotel's opening. Joel Greene, president of www.CondoHotelCenter.com, says buyers are interested in condo-hotels for their return-on-investment potential. “Buyers can own a luxury vacation home at a world-class resort and receive rent revenue when they are not using it,” Greene says. The only people who don't seem excited about the trend are tourism officials, who are worried that a move to individual hotel room ownership could leave too few beds for tourists, especially when large conventions come to town. But for now, condo-hotels remain on the rise.

Voice your opinion!

To join the conversation, and become an exclusive member of EC&M, create an account today!

Sponsored Recommendations

Electrical Conduit Comparison Chart

CHAMPION FIBERGLASS electrical conduit is a lightweight, durable option that provides lasting savings when compared to other materials. Compare electrical conduit types including...

Don't Let Burn-Through Threaten Another Data Center or Utility Project

Get the No Burn-Through Elbow eGuide to learn many reasons why Champion Fiberglass elbows will enhance your data center and utility projects today.

Considerations for Direct Burial Conduit

Installation type plays a key role in the type of conduit selected for electrical systems in industrial construction projects. Above ground, below ground, direct buried, encased...

How to Calculate Labor Costs

Most important to accurately estimating labor costs is knowing the approximate hours required for project completion. Learn how to calculate electrical labor cost.