The Trend Toward Mixed-Use Buildings
One of the most recent successful trends in real estate has been the evolution of mixed-use buildings. This formula incorporates luxury hotels and residential condominiums into a single development program. Often there is also a retail component as well.
Five-Star Services at Your Very Own Home
Resident owners have their own home, but because there is an onsite hotel, have access to all the services and amenities of a five-star hotel; namely, concierge, room service, valet, housekeeping service, gourmet restaurants, pools, fitness center and spa facilities. In other words, owners have the conveniences and amenities of a hotel, yet live in the comfort and privacy of their own luxury residence.
Residents have private elevators and private entrances which separate them from the public hotel and retail entrances. Plus, there’s the added benefit that when friends and relatives come to visit residents, they can have their own space and privacy by staying nearby in the hotel.
Hotel Residence Operators
Hotel residences are operated by some of the finest hotel companies in the world, brand name groups that are committed to maintaining the property as a first-class operation. Among them are Ritz-Carlton and Four Seasons, known for their five-star services.
These companies have a successful track record with hotel residences and mixed-use buildings. For example, Four Seasons has notable mixed-use projects in Chicago where it operates luxury hotels in complexes with condos, offices and shops; and San Francisco where it has a hotel, residence and sports-complex development. Under development is a Four Seasons Residences in Miami which will be the tallest residential building south of New York City.
Ritz-Carlton has residential components in Grand Cayman, Boston, New York City, and in Florida at Key Biscayne, Sarasota, Coconut Grove and Naples.
The locations of hotel residence developments are prime, the most sought-after neighborhoods, whether they be in urban areas or resort areas. Some of the most notable locations of hotel residences include Central Park South and Battery Park in New York, Georgetown and West End in Washington D.C., Boston Common in Boston, Brickell Avenue in Miami and South Market in San Francisco.
The likelihood of appreciation in these hotel residences versus a traditional condo is great because of the availability of five-star services, the brand-name hotel management companies, the outstanding locations and finally, the limited supply of hotel residences on the market.
How Hotel Residences Differ from Condo Hotels
Residences are owned as condominiums. Condo owners in hotel residences cannot put their homes into the hotel’s rental program to earn revenue, whereas condo hotel unit owners can participate in a rental program.