The Symposium on Financing, Developing and Operating Condo Hotels
Coming to Las Vegas, Dec. 6-7, 2005
October 31, 2005
Joel Greene here from Condo Hotel Center. Today I don’t have a property to discuss. I will have one for you in about a week. But for now, I wanted to let you know about an interesting conference coming up on the subject of condo hotels.
The Symposium on Financing, Developing and Operating Condo Hotels will take place on Dec. 6-7, 2005 in Las Vegas at the Mandalay Bay Resort & Casino.
The topics are geared more toward condo hotel developers and professionals than buyers, but it is interesting to see what’s being discussed and where the market is headed. And I know that some of you reading my Property Alerts are developers and industry insiders.
Condo Hotel Center has been given the opportunity to offer our Property Alert readers a significant discount off the regular ticket price.
Ticket prices for the Condo Hotel Symposium in Las Vegas are as follows:
- Registration fee – $1,795
- Condo Hotel Center discount – $150 off the above price or $1,645.
Simply reply to this email to receive a registration form with the $150 Condo Hotel Center courtesy discount. By the way, the last Condo Hotel Symposium was held in Miami in September and was a sell-out with more than 600 participants. Many people were turned away. I, along with all my colleagues at Condo Hotel Center attended. We found it to be an information-packed two days with excellent speakers covering a wide range of important topics. We also enjoyed all the opportunities to network with industry experts and insiders.
Below are the seminar topics and speakers for the Las Vegas Condo Hotel Symposium.
Preliminary session topics: subject to change.
General Discussion Issues
THE CONDO HOTEL BOOM: WILL THE MARKET CONTINUE TO BLAST OFF TO THE MOON?
* How Long Can the Growth Continue? * Market Growing Pains vs. Upside * Exit Strategies * IO Loans: Problem or Panacea? * Appreciation Rates of Condo Hotel and Other Similar Properties * 1031 Exchange Buyers * What are the Market Drivers?* Impact of Interest Rates * Demographics of Buyers * Impact of Everybody Diving into the Condo Hotel Pool * Drivers of the Ultra-Luxury Market * Looking At Major Markets (Miami, Vegas, NY) * What are the Long Term Potential Problems and Pitfalls of this Market? * Is the Existing Hotel Pool being Cannibalized: Is that a Bad Thing? * Condo Hotel Premium Valuation vs. Straight Hotel vs. Straight Condo * Condo Exit Market Development * International Outlook * What are the Risks of these Projects? * Condo Hotel Pipeline: How Many Will Actually be Built? Panel Chair: Claudio Stivelman, President SHEFAOR DEVELOPMENT Panel Participants: Mark A. Lunt, Senior Manager & Practice Leader-SE Area & Caribbean Basin-Hospitality Advisory Services ERNST & YOUNG LLP Rick F. Davis, Shareholder GREENBERG TRAURIG, LLP S. Chevis Hosea, Vice President-Development KSL LA COSTA DEVELOPMENT CORP.
THE DEVELOPER’S PRESIDENT PANEL
This panel will discuss the past successes and future plans of leading condo hotel developers. Panel Chair: Jay Neveloff, Partner KRAMER LEVIN Panel Participants: Robert Boykin, Chairman BOYKIN MANAGEMENT Leonard J. O’Donnell, President & CEO CRIMSON CAPITAL, LTD. Robert Falor, CEO FALOR COMPANIES Michael Overington, President IAN SCHRAGER HOTELS
FROM THE GROUND UP: NEW CONSTRUCTION ISSUES
* Acquire vs. New Construction: Cost Comparisons * Architecture/ Design/Construction Management: Who is Responsible? * Multifamily or Hotel Experience Wanted? * Impact of Rising Construction Costs * Phase Planning * Architectural Issues Panel Participants: Rob Harmon, Senior Vice President REMINGTON HOTEL CORP. Ira Mitzner, Managing Partner RIDA ASSOCIATES Mark Waltrip, Chief Operating Officer-Central Florida Investments WESTGATE RESORTS
THE CONVERSION FROM HOTEL TO CONDO HOTEL: WHAT NEEDS TO BE DONE
* Renovation Cost & Conversion* Architecture/ Design * Evaluating a Building’s Location, Current Condition & Desirability * What are the Pitfalls to Watch out for When Evaluating the Risk Factors in Moving an Acquisition to the Next Step? * New Construction vs. Hotel Conversion * Design * Union & Personnel Issues * The Plaza Hotel Case Study Panel Chair: Robert J. Ivanhoe, Shareholder GREENBERG TRAURIG, LLP Panel Participants: Alejandro Aparicio, Executive Vice President FORTUNE INTERNATIONAL Bruce Stein, Director of Real Estate SHAMROCK HOLDINGS
BEYOND THE POOL, HEATH CLUB & GOLF COURSE: DEVELOPING & MANAGING THE AMENITIES & VALUE-ADDED SERVICES
* What are the “Must Have” Amenities & Value-Added Services? How do the Amenity Requirements Change by Hotel Location? * Managing the Amenities: Should it be Done In-House or by a 3rd-Party * What are the Brands that will Add the Necessary Panache? * Marketing the Amenities * Architectural Issues Panel Participants: Rob Lewis, Vice President-Product Management AMERANTH Brandon McCarter, Vice President of Lodging AMERICAN SKIING COMPANY Gary S. Milner, Vice President CANYON RANCH Marty Collins, President GATEHOUSE CAPITAL THE CONDO HOTEL APARTMENT: WHAT ARE THE KEY BELLS & WHISTLES? * What Kind of Clientele are you Attracting? Owner vs. Hotel Customer * Room Amenities: What are the Must-Haves? * One-Bedroom One-Bath vs. the Suite? * What Must be in the Bathroom? * 2 Bedrooms+: What is Necessary to Attract this Level of Clientele? * Entertainment Unit Options * Evaluating the Full Kitchen * Design: When to go Conservative; When to get Funky & Fresh * Design Panel Participants: Fred Kalles, Industry Consultant EXTENWAY SOLUTIONS Alejandro Aparicio, Executive Vice President FORTUNE INTERNATIONAL Charles Reiss, Hospitality Development Consultant
LESSONS LEARNED: THE FIRST TIME I BUILT A CONDO HOTEL
* The Brand Decision * Common Area Management * How did you Underwrite the Project? * What Should you have the Most Concern With? * Sales & Marketing * Litigation: Just the Facts * Rental Programs * Mitigating Factors to be Concerned With * Approach to Risk * What was the Most Important Item I learned at this Symposium? * Creating a Project Organizational Structure Panel Participants: Alejandro Aparicio, Executive Vice President FORTUNE INTERNATIONAL Ron E. Smith, Vice President-Lincoln Square KEMPER DEVELOPMENT Brian Py, Vice President-Development & Finance THE KESSLER COLLECTION
EVALUATING THE KEYS TO SUCCESS: PARTNERSHIPS & JOINT VENTURES
* Taking Cash Out of the Venture * Tax-Deferred Issues * Is there a Typical Joint Venture Structure? What is the Preferred Choice of Developer Entity? * Capital Structure: How Much Equity do you Want a Partner to Invest? How Much Will you Put Up? * What are the Characteristics of your Ideal Partner? What Due Diligence Steps do you Take to Vet a Potential Partner? * Which Partner Takes the Construction/Conversion Risk? Completion Guarantees? * Joint Ventures: The Downside? * What are Some of the Ways to Protect Yourself in the JV Operating Agreement? * Can a Nondeveloper-hotel Seller Also Participate in the Development of Condo Hotels and Still get Capital Gains on Hotel Sale to Developer? * Who Should Sell/ Negotiate the Rental Agreement?: The Owner or Flag * Split Structures: Driven by Marketing or Flag? Panel Chair: Robert Sonnenblick, Chairman Emeritus SONNENBLICK-DEL RIO DEVELOPMENT, INC. Panel Participants: Stanley R. Castleton, CEO DDRM GREATPLACE LLC George Ruff, Senior Principal TRINITY HOTEL INVESTORS Joseph V. Green, President & CFO WINSTON HOTELS, INC.
WHICH FINANCING STRATEGIES ARE APPROPRIATE FOR THE CURRENT ECONOMIC ENVIRONMENT
* 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 Panel Chair: Steve Gold, HOTEL FINANCING STRATEGIES Panel Participants: Karim Alibhai, Principal GENCOM CORP. Bob Waun, CEO VACATION FINANCE Joseph V. Green, President & CFO WINSTON HOTELS, INC.
FINANCING STRATEGIES FOR THE PROSPECTIVE CONDO HOTEL OWNER: WHY IT’S YOUR PROBLEM
* What are the Terms that Buyers can Finance at? * GSE vs. Non-GSE Lenders Approaches * Rates/ Terms vs. Traditional Mortgage Financing * Marketing Relationships * Necessary Documents * Does you Project Work as a 2nd Home? What are the Implications? * Panel Participants: Bob Waun, CEO VACATION FINANCE
Condo Hotel Management Issues
UNIT RENTAL MANAGEMENT PROGRAMS & AGREEMENTS
* What Types of Rental Agreements are there? * Negotiations: What’s on the Table? * When Should Rental Agreements be Outlined to Owners? * When can an Owner Use their Unit? * What are Some of the Deductions that can be Taken Before the Rental Income Split? * How is the HOA Involved with the Individual Owners Agreement? * How are Condo Association Fees Divided into the Budget? * What are Some of the HOA’s Hot Buttons? * Unit Availability/Restrictions * Disclosure of Rental Agreement Splits & Details: How Important? Panel Participants: Grant Sabroff, Senior Vice President-Business Development BOYKIN MANAGEMENT COMPANY Guymond Fortin, President and CEO INTERSITE CORPORATION Brenton Howie, President PROVIDENT MANAGEMENT CORPORATION Lynn K. Cadwalader, Partner HOLLAND & KNIGHT
CONDO-HOTEL MANAGEMENT AGREEMENTS: A COMPARISON REGARDING THE PROJECT DOCUMENTATION VS. THE REALITY ON HOW THE PROJECT WORKS
* Negotiations & Putting it on Paper * CC&R * Homeowner Associations * Use and Access Rights * Comparing Developer Residential Ownership & Common Area Amounts * Management Fees * Term of Agreement, Termination Rights and Performance * Budget & Operations * Mortgage Authorization Panel Chair: Richard F. Ross, Chairman-Global Hospitality Practice & Co-Chairman-Global Real Estate Practice SQUIRE SANDERS & DEMPSEY Panel Participants: Judy Miles, Shareholder HELLER EHRMAN LLP A Representative Of HOLLAND & KNIGHT Fabrizio Passalacqua, CEO HOLLYWOOD GRANDE Brenton Howie, President PROVIDENT MANAGEMENT CORPORATION
COMMON AREAS & UNCOMMON ISSUES
* What is in the Common Area? * Budget, Maintenance & Revenue Issues * Should you Keep the Common Area? * 3rd-Party Common Area Management * Common Fees for Non-Rental Program Participants Panel Participants: Brandon McCarter, Vice President of Lodging AMERICAN SKIING COMPANY Bob Lipsitz, President DOUBLE JJ RESORT S. Chevis Hosea, Vice President-Development KSL LA COSTA DEVELOPMENT CORP. Ira Mitzner, Managing Partner RIDA ASSOCIATES
FUNDING CAPITAL IMPROVEMENTS, GENERAL UNIT MAINTENANCE, COST & EXPENSE ALLOCATION
* Maintenance & Deductions * Maintenance: How Much is Really Enough? What to do if you Don’t have Enough Funds? * Evaluating the Role of the Manager * What Insurance is Necessary? Panel Participants: Rob Woodward, President FINANCIAL SYSTEMS SOFTWARE, LLC Fabrizio Passalacqua, CEO HOLLYWOOD GRANDE
INVENTORY MANAGEMENT, DISTRIBUTION, REVENUE SHARING & RELATED SYSTEMS
* What Should a Good Accounting System Offer? * Fee Allocations & Revenue Tracking * Tax Reporting and Statements * Budgeting & Ongoing Expense Tracking * Necessary Reporting * On-Screen Features * Property Management Needs * Rental Rotation, Owner Reservations & Owner Concierge * Managing Multiple Sites * Maintenance & Preventive Maintenance * Calculating & Tracking the Revenue Sharing Between Owners and Accurate Accounting of Expenses & Fees * What does the Owner Need to Know? Panel Participants: Allen Rice, Executive Vice President TIMESHAREWARE
THE BIG BRAND PANEL: WHAT ARE THEY LOOKING FOR IN A CONDO HOTEL?
Please note this panel will be representatives from some of the major brands in the condo hotel space * What Kind of Properties are you Looking to Brand? * Beyond the Balance Sheet: What do you Look for in an Owner? * What are your Fees? Are you Looking for a Piece of the Action? * Do you Work with an Independent 3rd-Party Manager? * How Much $$ does a Brand Add to Room Prices/Rates? How Much does it Cost to Build to Such Standards? Panel Chair: Richard Warnick, President WARNICK & CO. Panel Participants: Mark Sharkey, Chief Operating Officer REMINGTON HOTEL CORP. Darryl Murphy, Vice President, Residential Development STARWOOD
TO BRAND/3RD-PARTY MANAGE OR NOT TO BRAND/3RD-PARTY MANAGE: THAT IS THE QUESTION
* What are the Appropriate Times to Bring in a Brand? When Should you go Alone? * Risk/ Reward & Fees * Management Company Perspective * What is the Value of a Brand in this Market? * Evaluating Management, License Fee * Brand Requirements Panel Participants: Stanley R. Castleton, CEO DDRM GREATPLACE LLC Marty Collins, President GATEHOUSE CAPITAL CORP. Gary B. Lake, Senior Vice President GENCOM CORP.
THE BIG LAUNCH: EVALUATING THE PRESALE STRATEGY
* Effectively Using the PR Channel * Comparing the Local vs. National Roll-Out * Considering your Market * Launching a High Profile Property * Small $$, Big Marketing: Getting the Most out of your Marketing Budget Panel Participants: Stanley R. Castleton, CEO DDRM GREATPLACE LLC Jerry Kaufman, Founder & Chairman GLOBAL MARKETING GROUP Ron E. Smith, Vice President-Lincoln Square KEMPER DEVELOPMENT COMPANY Taz Brown, Vice President-Business Development SUNBURST MARKETING GROUP
EFFECTIVELY SELLING YOUR CONDO HOTEL PROPERTY
* How to Differentiate Yourself * Marketing Thematic Properties * Using 3rd Party Brokers * US Buyer Profile * Foreign Buyers: What Happens When the Dollar Strengthens? * 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 * What are the Factors When Pricing you * 1031 Buyers/ Securities Sales * Incorporating Use Plan into the Sales Process * Comparing Buyers from Different Parts of the US * Design Issues * Buyer Referrals * Panel Participants: Guymond Fortin, President and CEO INTERSITE CORPORATION Brian Py, Vice President-Development & Finance THE KESSLER COLLECTION Charles Reiss, Hospitality Development Consultant Taz Brown, Vice President-Business Development SUNBURST MARKETING GROUP
THE LATEST IN MARKETING TECHNOLOGY
* Databases: What is Needed, What Works Panel Participants: Jerry Kaufman, Founder & Chairman GLOBAL MARKETING GROUP
EXCHANGE NETWORKS, AUCTIONS & OTHER ALTERNATIVE SALE/ RESALE METHODS
* Getting Rid of your Excess Rooms: Beyond Expedia & the Like * Vacation Clubs: An Option? A Benefit? * Attracting the High-End * Profile of those who Use Vacation Clubs Panel Participants: David Gilbert, Executive Vice President-Resort Sales & Marketing INTERVAL INTERNATIONAL
* What is the Average Age Buyer? Income Level? * Evaluating Purpose: 2nd Home or Investment? * Resort vs. Urban Buyer * Empty Nester vs. Family * Panel Participants: S. Chevis Hosea, Vice President-Development KSL LA COSTA DEVELOPMENT CORP. Charles Reiss, Hospitality Development Consultant
1031 EXCHANGE BUYERS/ SECURITIES SALES
* What is the Motivation for a 1031 Exchange? * Who are the Providers?* How can the Sale of a Hotel/Condo Unit Involve the Sale of a Security: What is the Securities Law Here? * Rental Programs Options for 1031 Buyers* Accredited Investors
HOTEL CONSTRUCTION LIABILITY
* Liability of Developer for Construction Defects and Mold * Cause and Origin Investigation * Risk Management Issues * Insurance Coverage and Recovery Actions * Disaster Response to Catastrophic Losses – Hurricane Katrina and Hurricane Rita Panel Chair: Alexander Robertson, IV, Senior Partner ROBERTSON & VICK, LLP Panel Participants: Bruce A. Aguilera, Vice President & General Counsel BELLAGIO Ross Feinberg, Esq., Partner FEINBERG, GRANT, MAYFIELD, KANEDA & LITT LLP Edward Martinet, Principal MC CONSULTANTS
ASK THE JUDGE
This discussion of sitting judges will give the rare opportunity for conference attendees to ask these distinguished professionals the pressing questions regarding developing and operating condo hotels Panel Chair: Alexander Robertson, IV Senior Partner ROBERTSON & VICK, LLP Panel Participants: Allan R. Earl, Judge EIGHTH DISTRICT COURT OF NEVADA, CLARK COUNTY Michael Cherry, Judge EIGHTH DISTRICT COURT OF NEVADA, CLARK COUNTY Nancy Saitta, Judge EIGHTH DISTRICT COURT OF NEVADA, CLARK COUNTY Janet Barton, Judge MARICOPA COUNTY SUPERIOR COURT, ARIZONA Hon. Peter H. Norell, Presiding Judge of the Superior Court SUPERIOR COURT OF CALIFORNIA, COUNTY OF SAN BERNARDINO Hon. Deborah A. Agosti, Senior Justice SUPREME COURT OF NEVADA
SALES & MARKETING COMPLIANCE
* Sales Training Necessary * What Aspects of Rental & Investment may a Sales Person Emphasize and Still be SEC Compliant? What Happens if this Rule is Violated? * What are the Consequences if the Sale of Condo Hotel Unit is Treated as a Security? * Do you Need to Monitor the Marketing Activities of Unaffiliated Brokers? What Happens if the Broker Violates the Program? * What Needs to be Disclosed Regarding Rental Programs? Can Incentives be Used to Sign up for a Rental Programs? Can a Purchaser be Penalized for not Participating? * What Information on Comparables/Competing Rental Programs may be Distributed? * Can you Establish Blackout Periods? * Should you Rely on SEC no action Letters? * Can you Obtain an Equivalent to an Accredit Investor Questionnaire? * Should you Allow Multiple Unit Purchasers to Participate in the Rental Program? * Pre-Sale Revenue Pooling Issues * The Courts, The Latest Panel Chair: Paul Berkowitz, Shareholder GREENBERG TRAURIG, LLP Panel Participants: Steven Weise, Shareholder HELLER EHRMAN LLP Robert Chasnow, Partner HOLLAND & KNIGHT W. Brian Hulse, Partner SNELL & WILMER LLP Taz Brown, Vice President- Business Development SUNBURST MARKETING GROUP
THE LOCAL ANGLE: POLITICS, LOCAL LAWS & REGULATIONS TO
* Unions Save Jobs: How to get your Message Out * Subsidies, Incentives & Tax Credits * Impact on Local Government Revenue from Penetration of Condo Hotel Market * Impact of Zoning Ordinances Limiting Occupancy * Land Use Policy and Development Standards * Design Standards, Density, Height Limitations, Parking Requirements * Historic Properties Panel Participants: Chris Foster, President HAMPSTEAD PARTNERS
AN UPDATE ON POTENTIAL LIABILITY ISSUES & CURRENT LAWSUITS
* Underwriting Risk of Condos, Hotels vs. Condo-Hotels * Exposure Inherent in the Structure * ADA & Fair Housing Considerations * Methodologies to Insure no Customer Litigation * State Condo Laws: Any Help * Additional Capital Expenditures & Maintenance Fees: Are they Well Understood & Documented? * Do Customers Really Understand this Product? Can this Cause a Problem if the Market Tanks? * HOA Disputes: Are Splits being Adequately Disclosed: What can be the Results? Panel Participants: Robert Fine, Shareholder GREENBERG TRAURIG, LLP Patricia Curtis, Partner SNELL & WILMER LLP
STRUCTURES THAT ALLOW INSTITUTIONAL INVESTORS AND REITS TO PARTICIPATE IN THE CONDO HOTEL MARKET
LOOKING BEYOND THE STATES: THE INTERNATIONAL CONDO HOTEL MARKET
* Asia: Where is there Strength? * Caribbean Queen: Condo Hotels in the Caribbean * Europe: Are Condo Hotels Expanding? * Lessons Learned in Latin America Panel Participants: Rick F. Davis, Shareholder GREENBERG TRAURIG, LLP
CONDO HOTELS: EVALUATING THE URBAN MODEL & ITS USE IN REGENERATION
* Modern Design in an Urban Setting: What does that Mean? * Historical/ Landmark Properties * Which Brands are Best in an Urban Setting
SMALL & BOUTIQUE CONDO HOTEL OPERATORS DISCUSSION
* Is there a Minimum Amount of Residences that are Needed for this Concept to Work? What Should the Condo/Hotel Ratio be? * Geographic Considerations * Brands & 3rd-Party Management * Finding your Selling Point * What Makes a Boutique/ Small Hotel Click? Panel Participants: Bob Lipsitz, President DOUBLE JJ RESORT Gail Oakes, Managing Partner HOMOSASSA RIVERSIDE RESORT LLC Jerome F. Cataldo, Executive Vice President Development HOSTMARK HOSPITALITY GROUP
PRE-CONFERENCE WORKSHOP: REVIEWING CONDO HOTELS AND PRODUCT VARIATIONS
Many developers have experience in the condo development or hotel development areas. Many others have done fractionals, vacation clubs and the like. This session will compare and contrast the inner-working of these more familiar types of properties with the condo hotel concept. Discussions will focus on: * Warning Dangerous Areas Ahead Including SEC Issues * Rental Programs * Real Estate Structures * Sales Approaches* Shared Facilities-Controls, Stakeholders * Management Fees * Building, Land & Hotel * Government Sensitivities * Securities Law Implications * Maintenance Issues * Vs. Fractionals and Vacation Homes Hotels * Hotel Side-by-Side vs. Condo Hotel * Comparing Developer Residential Ownership & Common Area Amounts * Legal Definitions * Key Issues you Must be Aware of * Making a Marginal Project Feasible? Workshop Leader: Robert Chasnow, Partner HOLLAND & KNIGHT Workshop Participants: Chris Foster, President HAMPSTEAD PARTNERS
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If you would like to attend the Condo Hotel Symposium, simply reply to this email and you will be sent a registration form for the $150 Condo Hotel Center courtesy discount. For advertising/sponsorship information, simply reply to this email with your full name, company name and phone number, and please specify “Condo Hotel Symposium Sponsorship” in the subject line. Thank you for your interest in news from Condo Hotel Center. We’ll be back soon with one of our usual Property Alerts featuring a new property coming on the market. Happy Halloween!
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Condo Hotel Center
1368 NW 165th Ave.
Pembroke Pines, FL 33028
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