Condo Hotel Conversions
Because of the widely-publicized success most condo hotels are currently experiencing, many hotel and resort owners are considering converting their property into a condo hotel. The condo hotel concept, especially with regard to conversions, has merit. However, doing a successful and profitable condo hotel conversion can be challenging. No one formula fits all.
If you’re considering a condo hotel conversion, here is a checklist of things you should do:
- 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
- Select a quality management company, preferably one with a name-brand franchise
- Hire a savvy sales and marketing company with a proven track record
- Price units to sell at a good pace, but not so low as to leave money on the table
- Estimate potential profits as a condo hotel versus continuing the existing operation without conversion.
Obviously, a condo hotel conversion is a large-scale project involving a great deal of planning, financing and hard work. However, the result can be a highly profitable scenario.
To assist you in the process, we have prepared two documents: 1) a Case Study of a successful condo hotel conversion, and 2) Frequently Asked Questions about condo hotel conversions. We will e-mail them to you upon request at no charge, no obligation. Request condo hotel conversion information here.
In addition, if you would like assistance in the conversion process, Condo Hotel Center can put you in touch with qualified companies and consultants specializing in condo hotel conversions. Among them are:
- Companies that do market and feasibility studies
- Mortgage financing sources
- Sales and marketing firms
- Entities interested in large, multiple-unit purchases
- A barter company that will cover up-front advertising and marketing expenses in return for the equivalent value of units when your project is built
Depending on your specific needs, we can connect you with the right people to help make your project a profitable reality. It is our sincere hope that your project comes to fruition, and we at Condo Hotel Center can be a part of your condo hotel sales effort in the future.
Contact us today, no cost, no obligation, for more information: info@CondoHotelCenter.com or call (305) 944-3090.