COMMON SENSE
THE COMMON SENSE APPROACH TO UNDERSTANDING
A CONDO HOTEL INDUSTRY FORMULA FOR SUCCESS
Words of Wisdom on the Condo Hotel Industry From Provident Hotels & Resorts
CLEARWATER, Fla. (November, 2008)- Applying its own pearls of wisdom, gleaned from nearly 30 years experience, Provident Hotels & Resorts, leading full service condominium hotel management organization, is helping to demystify the condominium hotel industry, one saying at a time.
Here are a few common sense sayings that succinctly and understandably summarize the do’s and don’ts to a successful venture into today’s condominium hotel industry.
· YOU REAP WHAT YOU SOW
Create the structure of the condominium development and rental agreement so they are fair and equitable for both unit owners and developers alike. Inequitable arrangements will inevitably and always bite you in the you know what.
· A ROLLING STONE GATHERS NO MOSS
Condominium Hotels work best when purchased for multiple reasons, including personal owner use, enjoyment of superior amenities, plus rental revenue and appreciation opportunities. They seldom work as stand alone, hands off investments.
· A CHAIN IS AS STRONG AS ITS WEAKEST LINK
All aspects of the condominium hotel facility must be carefully considered on the front end. A deficiency in one area or aspect can weaken the entire future operation of the project.
· A HOUSE DIVIDED CANNOT STAND
Hotel Management must find a way to successfully coexist with the unit owners and the homeowner association.
· CHOOSE YOUR NEIGHBORS BEFORE YOU BUY YOUR HOME
Location, location, location. Condo hotels generally work best in leisure vacation home destinations.
· IF YOU DO WHAT YOU HAVE ALWAYS DONE, YOU WILL GET WHAT YOU ALWAYS GOT
Every condo hotel is different from one another and can be improved upon. You must learn from your experiences, be creative and adapt to what you have learned.
· EXPERIENCE IS THE MOTHER OF WISDOM
There is no substitute for hands on experience in a very complex environment.
· GIVE A MAN A FISH AND YOU’LL FEED HIM FOR A DAY, TEACH A MAN TO FISH AND YOU’LL FEED HIM FOR LIFE
If you don’t know the intricacies of the condominium hotel industry, find someone who does, and then substantiate it. The world is full of self-professed “experts,”but experience is key.
Monday, March 23, 2009
Wednesday, February 18, 2009
Top 5 Misconceptions
Provident Hotels & Resorts demystifies the condominuim hotel industry
CLEARWATER, Fla. (October 20, 2008) - For more than 30 years, the condominium hotel industry has been a viable marketplace for vacation home buyers and property developers. unfortunately, there are still some deep-seated misconceptions about the industry, recently magnified by the downward real estate market, that have led the ill-informed to see the condo-hotel business strategy as problematic. In an effort to clear misconceptions about the industry, Provident Hotels & Resorts (aka Provident Management Corporation), a leading full-service condo hotel management organization, explains the five top misconceptions of condo hotels.
1) Condominium Hotels are a flawed business model
Condominium hotels have been and continue to be a stable business concept when implemented correctly. A balance between the goals of the developer and unit owners has to be achieved for the project to succeed. Condo-hotel projects can run into problems when one side gets too greedy or the location does not make sense from the standpoint of it being a viable second home or vacation destination. The downfall of a property typically occurs when developer promises are not delivered and/or when purchasers have their own misconceptions about what they are actually buying.
2) Condominium Hotels are an investment opportunity to make a quick profit or at least pay for themselves
While condo-hotels are able to achieve rental revenue to offset certain ownership expenses, they are meant to serve as a second/vacation home first and foremost. This means those interested in purchasing a condo-hotel unit should be in the market for lifestyle enhancement properties, not for potential profits. The income acquired from the rental program should primarily be used to offset the overhead costs when the unit is not in use by the owner.
3) All condo-hotel units must be enrolled in the developers rental program
Condominium hotels vary across the board, however every properties’ on-site rental programs are optional. Owners can choose whether or not to have their unit in the program to be rented as a hotel room while not in use. It is however, to the advantage of the owner to use the on-site rental program to maximize potential rental revenue as well as to take advantage of the numerous other services that often times are offered.
4) Condominium Hotels will work at any location that works for a straight hotel
Not all successful hotels would make for a successful condominium hotel. Since condominium hotels should primarily be viewed as a second home opportunity they primarily work best at locations that would be desirable and will be periodically used by the owner as a vacation or leisure destination.
5) Owners can only use their units on certain days of the year
In many condominium hotel rental programs this restriction does exist but it is always unjustified. Most condo hotel operators are concerned that the condo hotel unit owner will occupy their unit during all or most peak occupancy periods thus taking away potential revenues and management fees. This restriction however is unnecessary since most condo hotel unit owners are also interested in capitalizing on rental revenues during “high season” periods and will reserve their stays accordingly.
Entering the condominium hotel industry in 1980, Provident has handled purpose-built and conversion properties in various markets including Tampa, Orlando, Miami, the Florida Keys, Hawaii and California. Provident’s continued success is attributed to unmatched insight into the needs and requirements of this demanding industry, so that both property developers and unit owners achieve satisfying and profitable results. As an advocate for the industry, principals of the company are often keynote speakers on a national level.
Provident Hotels & Resorts demystifies the condominuim hotel industry
CLEARWATER, Fla. (October 20, 2008) - For more than 30 years, the condominium hotel industry has been a viable marketplace for vacation home buyers and property developers. unfortunately, there are still some deep-seated misconceptions about the industry, recently magnified by the downward real estate market, that have led the ill-informed to see the condo-hotel business strategy as problematic. In an effort to clear misconceptions about the industry, Provident Hotels & Resorts (aka Provident Management Corporation), a leading full-service condo hotel management organization, explains the five top misconceptions of condo hotels.
1) Condominium Hotels are a flawed business model
Condominium hotels have been and continue to be a stable business concept when implemented correctly. A balance between the goals of the developer and unit owners has to be achieved for the project to succeed. Condo-hotel projects can run into problems when one side gets too greedy or the location does not make sense from the standpoint of it being a viable second home or vacation destination. The downfall of a property typically occurs when developer promises are not delivered and/or when purchasers have their own misconceptions about what they are actually buying.
2) Condominium Hotels are an investment opportunity to make a quick profit or at least pay for themselves
While condo-hotels are able to achieve rental revenue to offset certain ownership expenses, they are meant to serve as a second/vacation home first and foremost. This means those interested in purchasing a condo-hotel unit should be in the market for lifestyle enhancement properties, not for potential profits. The income acquired from the rental program should primarily be used to offset the overhead costs when the unit is not in use by the owner.
3) All condo-hotel units must be enrolled in the developers rental program
Condominium hotels vary across the board, however every properties’ on-site rental programs are optional. Owners can choose whether or not to have their unit in the program to be rented as a hotel room while not in use. It is however, to the advantage of the owner to use the on-site rental program to maximize potential rental revenue as well as to take advantage of the numerous other services that often times are offered.
4) Condominium Hotels will work at any location that works for a straight hotel
Not all successful hotels would make for a successful condominium hotel. Since condominium hotels should primarily be viewed as a second home opportunity they primarily work best at locations that would be desirable and will be periodically used by the owner as a vacation or leisure destination.
5) Owners can only use their units on certain days of the year
In many condominium hotel rental programs this restriction does exist but it is always unjustified. Most condo hotel operators are concerned that the condo hotel unit owner will occupy their unit during all or most peak occupancy periods thus taking away potential revenues and management fees. This restriction however is unnecessary since most condo hotel unit owners are also interested in capitalizing on rental revenues during “high season” periods and will reserve their stays accordingly.
Entering the condominium hotel industry in 1980, Provident has handled purpose-built and conversion properties in various markets including Tampa, Orlando, Miami, the Florida Keys, Hawaii and California. Provident’s continued success is attributed to unmatched insight into the needs and requirements of this demanding industry, so that both property developers and unit owners achieve satisfying and profitable results. As an advocate for the industry, principals of the company are often keynote speakers on a national level.
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