Converting Your Hotels to Condo Hotels

With condo hotel’s success in the real estate market, many developers are starting to ride on in this new “fad”. However, with limited land resources in the popular states like Florida, Chicago, Las Vegas, Caribbean and the likes, developers must choose whether to take condo hotel to a new state or to stay and convert the remaining hotels in the area.

For some it proves to be the case while others even go as far as converting an apartment into a condohotel. One of the reasons on these conversions is the developers’ hope of improving their property as well as generates more revenue for their hotels or apartments.

Hotels as condo hotels, is it plausible?

Condo hotels came about by trying to combine condominiums and hotels that seem to be very tempting for investors. But can all hotels pass as condo hotels?

As in all industries, different strokes are for different folks as there is no bull’s eye solution for this. However, there have been a lot of condo hotel conversions that actually work and became successful at that! What made the conversions such a success? These are three of the most important factors to consider:

• Name and reputation will always matter, people usually do not want to deal with nobodies for fear of being laundered or the investment might not be that profitable
• The location is also an important factor. If we are to convert an existing hotel to a condo hotel, it must be in a location that is frequently visited by the tourist and locals alike
• Doing fairly well as a hotel. One of the most important thought in the condo hotel market is that if it does not profit well as a hotel, then chances are that it will not be profitable as condo hotel as well

Of course, these are not the only factors to look into, but so far, these are the aspects that can act as determinants whether the hotel to condo hotel conversion will be a success.

Condo Hotel Center provided a checklist of things that a developer should do if they want to convert an existing property to a condo hotel. Among other things, they suggest that the developer should:

• Determine your target prospect
• Measure the demand for a product like yours
• Consider whether your location is one that will attract hotel guests and will also have appeal as a second or vacation home
• Evaluate the competition which includes other hotels and also straight condos.
• Determine the unit mix (studios, one bedrooms, two bedrooms, etc.)
• Put together an amenity package that will appeal to your target market
• Calculate the costs of needed property upgrades, remodeling and furnishings

One thing to remember is that, as in all businesses, condo hotels conversion and development, includes a lot of planning, researching, financing and hard work to make it a success. But if it is done properly, the result can be highly profitable.

The Real Estate Investment Group, Ltd. is a leader in the condo hotel market. With national recognition in Chicago based news radio and television, we are able to bring our negotiation skills to the table and present luxury properties to the public with a variety of perks and incentives. You may visit Own a Hotel Room to learn more about them or visit the Condo Hotel Blog to learn how to own a hotel, one room at a time.

Source: www.a1articles.com