Upcoming Symposium on How to Finance, Develop & Operate Condo Hotels
August 9, 2005
Joel Greene here from Condo Hotel Center. Today I don’t have a property to discuss. We will have one for you later this week. But for now, I wanted to let you know about an interesting symposium coming up on the subject of condo hotels.
The topics are geared more toward condo hotel developers than consumers, but it is interesting to see where the market is headed. And I know that some of you reading my Property Alerts are developers or industry insiders.
The Symposium on Financing, Developing and Operating Condo Hotels will take place on Sept. 7-8, 2005 in Miami at the Conrad Hotel on Brickell Avenue. It is being organized by Information Management Network (IMN), professional seminar planners out of New York City. As a sponsor, Condo Hotel Center has been given the opportunity to offer its clients a significant discount off the regular ticket price.
Regular ticket price – $1,595
Condo Hotel Center client ticket price – $1,345
Total savings – $250
If you would like to attend the symposium, simply send us your full name and company name (if applicable). You will be emailed a registration form by an IMN seminar planner.
There are also several sponsorship opportunities available. If you think your company would be interested in participating, send us your full name and company name to receive details about sponsorship.
Below are the seminar topics and speakers. Hope to see you there!
SYMPOSIUM WORKSHOP: REVIEWING CONDO HOTELS & PRODUCT VARIATIONS
- Fractionals, Extended Stay, Condo Apartments vs. Condo Hotels
- Hotel and Apartment Side-by-Side vs. Traditional Condo Hotel
- Common Area Issues
- Legal Definitions
- Key Issues you Must be Aware of
- Making a Marginal Project Feasible
Workshop Facilitator: Brian L. Belt, Partner SHUTTS & BOWEN LLP
Workshop Leaders: Andrew S. Robins, Chairman-Real Estate Practice, Director-Leisure & Resort Practice Group GUNSTER YOAKLEY Tom Patton, Development Manager LEGENDARY, INC. David Schwartz, Managing Principal THE MANAGEMENT CONSORTIUM, INC.
EVALUATING THE CONDO HOTEL EXPLOSION: ARE CONDO HOTELS THE DOT.COM’S OF THE 90’S OR A LONG-TERM REALITY?
- Looking At Major Markets (e.g. Miami, Las Vegas, NYC)
- What are the Risks, Potential Problems & Pitfalls of this Market?
- Condo Conversions: Is the Existing Hotel Pool being Cannibalized? Is that Necessarily a Bad Thing?
- Condo Hotel Premium Valuations
- Condo Exit Market
- Performance of Condo Hotels: Comparing Inner City vs. Resort Properties
- Trend Toward ‘Condo-izing’ Everything
- Impact of Competition from Other Condo Types
- Condo Hotel Pipeline: How Many Will Actually be Built?
- Looking Beyond The States: The International Condo Hotel Market
- Impact of Condo Flippers
- Default Likelihood in a Rising Interest Rate Environment
Session Chair: Mark A. Lunt, Senior Manager & Practice Leader-SE Area & Caribbean Basin-Hospitality Advisory Services ERNST & YOUNG LLP
Session Participants: Jeffrey Owen, Partner DLA PIPER RUDNICK GRAY CARY A representative from GREENBERG TRAURIG Richard G. Baumert, Vice President MILLENNIUM PARTNERS Jud Pankey, President PRESCOTT REALTY GROUP Richard K. Hollowell, Real Estate Advisory Partner RACHLIN COHEN & HOLTZ LLP Claudio Stivelman, President SHEFAOR DEVELOPMENT LLC
WHAT ARE THE IDEAL COMPONENTS, REGIME & FINANCIAL STRUCTURE OF A SUCCESSFUL CONDO HOTEL OPERATION?
- Owner/Operator vs. 3rd-Party Management
- Necessary & Value-Added Amenities and Services
- Striking a Deal Between the Owner/Operator, Developer and Individual
- Upkeep: Who’s Responsible?
- Long-term Capital Demands: Who Pays the Piper When the 3% Reserve is not Enough?
- Rental Pool Commitment Options
- Branded vs. Unbranded
- Comparing Regimes in Urban vs. Resort Setting
- Residual Hotel (Public Spaces, F&B Outlets, Meeting Spaces etc.) Ownership and Revenues
- CC&R Options (Covenants, Conditions and Restrictions)
Session Chairs: Russell Flicker, Managing Director THE BLACKSTONE GROUP and Jay Neveloff, Partner KRAMER LEVIN
Session Participants: Gil Dezer, President DEZER DEVELOPMENT Bob Lipsitz, President DOUBLE JJ RESORT David C. Gilbert, Executive Vice President-Resort Sales & Service INTERVAL International Amachie Ackah, Vice President LUBERT ADLER Cameron Burnet, Senior Vice President SUPERCLUBS & SONESTA BRASIL
KEY OPERATING & ON-SITE MANAGEMENT ISSUES
- Inventory/Revenue Management
- Accounting Issues
- Cost & Expense Allocation
- Whole Project vs. Common Facilities/Unit Budget Split
- What Systems Technologies are Available for the Condo Hotel?
- Condo Sale Practices
- Calculating and Tracking the Revenue Sharing Between Owners and Accurate Accounting of Expenses and Fees
- What does the Owner Need to Know About Operations and On-Site Management?
Session Chair: R. Brenton Howie, President PROVIDENT MANAGEMENT CORPORATION
Session Participants: Brandon McCarter, Vice President of Lodging AMERICAN SKIING COMPANY Allen Rice, Director of Business Development CONDOTELWARE Fabrizio Passalacqua, CEO HOLLYWOOD GRANDE CONDOMINIUM HOTEL RESORT Jeff Yamaguchi, Vice President of Operations THE RESIDENCES AT MGM GRAND Cameron Burnet, Senior Vice President SUPERCLUBS & SONESTA BRASIL
“THE FUTURE IS SO BRIGHT…WE’VE GOT TO WEAR SHADES”
- What is Fueling this Bull Market in Leisure-Oriented Real Estate?
- Real Time Industry Data
- Psychographics & Demographics
- What are Future Opportunities in this Space?
- New Markets
- Driving Higher Yields Via Innovative Offering Structures
- Why it’s great to be in this Market!
Session Chair: David Bansmer, Managing Director THE REGISTRY COLLECTION
CONDO HOTEL PRESIDENT & CEO ROUNDTABLE This panel of leading executives will discuss the past successes and future plans of leading condo hotel developers.
Session Participants: Gil Dezer, President DEZER DEVELOPMENT Bill Ross, President ESTORIL, INC. ESPIRITO SANTO PLAZA Robert Falor, CEO FALOR COMPANIES Angus Rogers, Founder and President FLORIDAYS RESORTS Jerry Kaufman, Founder & Chairman GLOBAL MARKETING GROUP
PARTNERSHIPS AND JOINT VENTURES: MAKING THE MOST OF YOUR INVESTMENT
- Partnership & JV Structures
- Secondary Liquidity
- Alternative Financing Techniques
- Negotiation Points
- Operating Partner Agreements
Session Chair: Scott Landress, Managing Partner LIQUID REALTY PARTNERS
Session Participants: Thomas C. Nice, Principal REZNICK GROUP Rich Feldheim, CEO STAR RESORTS GROUP George Ruff, Senior Principal TRINITY HOTEL INVESTORS Joseph V. Green, President & CFO WINSTON HOTELS
BRANDING & SELECTING YOUR FLAG
- Identifying & Comparing the Top Brands
- What is the Value of a Brand in this Market?
- Evaluating Management, License Fees
- Brand Requirements
- Management Requirements and Options
- Brand Financing, Ownership and Joint Ventures
- Going With a Non-Luxury Brand: Why?
Session Chair: Richard A.Warnick, President WARNICK & COMPANY
Session Participants: Carlos J. Rodriguez, Executive Vice President-Real Estate Development DRIFTWOOD HOSPITALITY MANAGEMENT LLC Gary B. Lake, Senior Vice President GENCON GROUP Gregory Rockett, Vice President-Development HILTON INTERNATIONAL-THE AMERICAS
UNIT RENTAL MANAGEMENT PROGRAMS & AGREEMENTS
- Reciprocal Rights
- Disclosure During Sales Process
- Operational Issues, Including Pooling of Rent
- Rental Availability, Term Length & Unit Availability/Restrictions
- Maintenance and Deductions
- HOA (Homeowner Association) Issues
- Condo Association Fees
Session Participants: Brandon McCarter, Vice President of Lodging AMERICAN SKIING COMPANY Grant Sabroff, Senior Vice President-Business Development BOYKIN MANAGEMENT COMPANY Alejando Aparicio, Executive Vice President FORTUNE INTERNATIONAL HOTELS, INC. Nina K. Eldred, Of Counsel SQUIRE, SANDERS & DEMPSEY L.L.P. Harper Sibley, President VALENTINES ISLAND DEVELOPMENT
UPDATE ON POTENTIAL LIABILITY ISSUES & CURRENT LAWSUITS
- Condo Defect Liability
- Additional Capital Expenditures: Are they Well Understood & Documented?
- Do Customers Really Understand this Product?: What Problems Can this Cause Down the Line
- ADA Compliance
- Maintenance Fees
- Suing the Government to get Approval: Is it Worth it?
Session Participants: A representative from GREENBERG TRAURIG Scott Allan, Senior Vice President MARSH
HOW ARE CONDO HOTELS FINANCING THEIR PROPERTIES?
- Participations, Joint Ventures & Other Equity Financings
- Mezzanine Financing
- Pricing of Hotel With Condo Hotel Component vs. Without
- Are there Projects you Wouldn’t Finance?
- Construction vs. Acquisition Financing
- Financing From the Consumer Side
Session Chair: Steve Gold, Managing Director HOTEL FINANCIAL STRATEGIES
Session Participants: Jeffrey A. Gould, President & CEO BRT REALTY TRUST Ali Elam, Managing Director FORTRESS INVESTMENT GROUP LLC a representative from GREENBURG TRAURIG Marc Ehrlich, Principal O’CONNOR CAPITAL PARTNERS Bob Waun, Vice President-Private Mortgage Banking PARAMOUNT BANK Joseph V. Green, President & CFO WINSTON HOTELS
SALES & MARKETING STRATEGIES: HOW TO STAND OUT FROM THE CROWD
- How to Differentiate Yourself
- Using 3rd-Party Brokers
- US Buyer Profile
- Foreign Buyers: What Happens if the Dollar Strengthens Further?
- Different Locations, Different Marketing Strategies and Buyers
- What is a Buyer Really Looking for? A Vacation Home? ROI? Tax Break?
- Regulations to be Aware of
- Pricing your Condo
- Marketing Variations on Theme Including: Ski, Golf, Wellness Centers and Other Niche Products
- 1031 Buyers
Session Chair: Gary S. Milner, Vice President-Legal & Development CANYON RANCH
Session Participants: Bob Lipsitz, President DOUBLE JJ RANCH AND GOLF RESORT R. Brenton Howie, President PROVIDENT MANAGEMENT CORPORATION Gene Grabarnick, Member of the Development Team REGENT SOUTH BEACH Chris Tivey, Executive Vice President STAR RESORT GROUP
SITE SELECTION & NEW CONSTRUCTION: CRITICAL FEATURES & PROJECT MANAGEMENT ISSUES FOR A PROFITABLE CONDO HOTEL
- Location, Location, Location
- Construction Management: Who has Responsibility?
- Help Wanted: Hotel or Multifamily Experience Necessary?
- Rising Construction Expenses: Has it Impacted the Bottom Line?
- Construction Finance: What Kind of Terms are Available Today?
- Phase Planning
Session Participants: David Pisor, CEO ELYSIAN DEVELOPMENT Henry Terech, Senior Vice President EXTELL DEVELOPMENT CO. Jerry Kaufman, Founder & Chairman GLOBAL MARKETING GROUP Mark Waltrip, Chief Operating Officer-Central Florida Investments WESTGATE RESORTS
SALES & MARKETING COMPLIANCE
- Sales Training Necessary
- SEC Laws to be Aware of During the Sales Process
- Disclosure of Rental Program During Sale Process
- Pre-Sale Regulatory Issues: When can you Sign Up Buyers and Take Down Payments?
- Pre-Sale Revenue Pooling Issues
Session Chair: Paul Berkowitz, Shareholder GREENBERG TRAURIG
Session Participants: David Pisor, CEO ELYSIAN DEVELOPMENT Mary Beth Bosco, Partner GUNSTER YOAKLEY Robert Chasnow, Partner HOLLAND & KNIGHT Alfred Smith, Partner SHUTTS & BOWEN
PROFITABLE STRATEGIES FOR A TIMELY ACQUISITION, RENOVATION AND CONVERSION
- Renovation Cost & Conversion
- Evaluating a Building’s Location, Current Condition & Desirability
- A Small Developer’s Perspective
- Timeframe & Impact on Profitability
- Multi-Property Acquisitions
- Financing the Acquisition
- Repositioning Non-Hotel or Apartment Properties
Session Participants: Henry Terech, Senior Vice President EXTELL DEVELOPMENT CO. Brian A. Py, Vice President of Development and Finance THE KESSLER COLLECTION David Merritt, Senior Vice President MARCUS HOTELS & RESORTS Janice Schnabel, Managing Director-Head of Hospitality Practice MARSH Jud Pankey, President PRESCOTT REALTY GROUP Gene Grabarnick, Member of the Development Team REGENT SOUTH BEACH
MIXED-USE PROPERTIES: WORKING CONDO HOTELS INTO THE EQUATION
- Creating a Project Organizational Structure
- Balancing Condo Owner Needs vs. Project Owner Needs
- Incorporating Retail, Office & Other Non-Hotel/Residential Components
- Role of the Local Government and Development Agencies
- Project Structural Options
- Multi-Party CC&Rs
- Use Area Issues
- Allocation of Costs and Project Maintenance
- Mixed-Use Projects Utilizing Both Fractionals and Condo Hotels
- Developing Agreements e.g. Management, License, Pre-Opening & Sales/Marketing
- Condo Hotels as a Part of a Redevelopment
Session Chair: Rick S. Kirkbride, Chair-Resort, Restaurant & Recreation Practice Group PAUL, HASTINGS, JANOFSKY & WALKER LLP
Session Participants: Adam Berkoff, Partner DLA PIPER RUDNICK GRAY CARY Marty Collins, President GATEHOUSE CAPITAL CORP. David C. Gilbert, Executive Vice President-Resort Sales & Service INTERVAL INTERNATIONAL David Schwartz, Managing Principal THE MANAGEMENT CONSORTIUM, INC. Gary M. Safady, Managing Partner O&S HOLDINGS, LLC Jim Mace, Partner SNELL & WILMER LLP
EVALUATING THE LOCAL POLITICAL CLIMATE, LAWS & RELEVANT CONDO REGULATIONS
- Residential Zoning: Can you Build a Condo Hotel?
- The NY Plaza Case Study
- Land Use Policy and Development Standards
- Design Standards, Density, Height Limitations, Parking Requirements
- Historic Properties
- Keys for Developers When Working the Political Angle
- In-House Expertise vs. Hiring Help
- Time and Effort Necessary to be Successful
Session Chair: a representative from GREENBERG TRAURIG
Session Participants: Jody Kriss, Managing Director BAYROCK GROUP Chris Foster, President HAMPSTEAD PARTNERS Eric Sheppard, President & CEO WSG DEVELOPMENT
CONCLUDING DISCUSSION: THE “DIDN’T TAKE THE PLUNGE” EXPERIENCE
This session will detail the good, the bad and the ugly of those who actually invested in a condo hotel project for the first time or went through the whole evaluation process of investing in a condo hotel but didn’t ultimately invest. Discussions will focus on:
- Translating Fractional, Multifamily & Hotel Experiences
- Joint Venture Considerations & Evaluations
- Where was the Risk?
- Evaluating Phase Two Developments
- Assessing the Marketing Plan
- Why Didn’t you Pull the Trigger?
- What was the Key Issue You Learned From this Experience?
- What was the Most Important Topic you Heard at this Symposium?
Session Chair: Andrew S. Robins, Chairman-Real Estate Practice, Director-Leisure & Resort Practice Group GUNSTER YOAKLEY
Session Participants: Bill White, Vice President-Acquisitions AMERICAN INVSCO Thomas M. Evans, Vice President AMSTAR Peter M. Locke, Managing Director BLACKACRE CAPITAL MANAGEMENT Joy Anzalone, Chef Operating Officer CONSOLIDATED MANAGEMENT, INC. Cheryl L. Jones, Director of Hospitality Investments NORTHRIDGE CAPITAL, LLC Thomas Arasi, President PORTMAN HOLDINGS LLC
TO ATTEND THE CONDO HOTEL SYMPOSIUM
If you would like to attend the Condo Hotel Symposium, simply send us your full name, and you will be sent a registration form by the seminar planners. Be sure to use that form to receive Condo Hotel Center’s $250 discount off the price.
There are also several sponsorship opportunities available. If you think your company might be interested in participating, send us your full name and company name to receive details about sponsorship.
Please feel free to pass this seminar information to others whom you think might be interested. However, they must request their registration form from Condo Hotel Center to receive the discounted ticket price. They can also subscribe to receive future condo hotel Property Alerts at www.CondoHotelCenter.com.
Thank you for your interest in news from Condo Hotel Center. We’ll be back in our next Alert with a featured property.
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Condo Hotel Center
1368 NW 165th Ave.
Pembroke Pines, FL 33028
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