If done correctly, yes.
The idea of placing condo units and hotel rooms under one roof or in separate buildings on the same property is not a new one. It was a big idea back in the early 2000s, but then the housing bubble burst, real estate prices tumbled, and long-anticipated projects never materialized.
In recent years, the concept has returned at a fevered pace, however—especially in South Florida, where a sunny lifestyle is bringing in owners and tourists alike. It’s a big reason why there are so many cranes rising above both seaside and downtown skylines in the region, from Miami to Hollywood and Fort Lauderdale to West Palm.
The condo-hotel is an attractive brand for everyone
A driving force in many of these condo-hotel projects are international, easily recognizable brands, including Hyatt, Four Seasons, and Ritz-Carlton—to name a few. These brands are key components of project marketing strategies that satisfy a certain prestige mindset among potential owners and guests.
The trick is balancing the expectations of two different populations with the use of amenities and offerings. Very often, condo units are located above hotel rooms or in separate buildings on shared property, since owners are more likely to pay for the expansive views. At the same time, enhanced security systems provide owners with separate entrances and elevators while allowing them access to five-star amenities that travelers have come to expect from hotel brands.
Condo-hotels can be a wise move for developers
For property developers, a condo-hotel makes good financial sense. Rather than strictly creating hotels with fluctuating rental income, adding condos to the mix helps to offset some of the risk and costs. Condo-hotel risks are distributed among condo owners, and pre-sales can often help the developer recoup a portion of construction costs. The hotel portion as well as restaurants, meeting facilities, and retail space then continue to generate income after completion.
And if a brand gets on board with the project, condo units and hotel rooms could be given a premium price tag.
Condo-hotels built for success
When looking at successful condo-hotel projects, there are a few key similarities:
- Although it goes without saying that location matters … it’s always a good idea to remember that, well, location matters. In South Florida, there are two key locations: overlooking the beach, where owners and tourists alike can enjoy seaside living, or in downtown areas, where everyone can enjoy an easy walk from the office to nightlife to culture to home/hotel.
- Unit features continue to be an essential consideration, from materials used to square footage. Condo owners don’t want to feel they’re living in a glorified hotel room, while travelers want to experience luxury accommodations.
- With competition, many condo-hotel projects are upping the amenities game. Among the offerings owners and tourists share are concierge and valet services, 24-hour food delivery, car service to and from the airport, spa services, bike rentals, housekeeping, tailor, and laundry services, gym facilities, and restaurants. Some buildings even allow owners to rent their condos when not in use and have them professionally managed.
SoFlo is a beautiful place to live and play
It really isn’t much of a surprise that South Florida is one of the top locations for condo-hotel combos. The team at Morris Southeast Group knows firsthand what it’s like to live and play here, so it makes sense that so many others want to make the move or simply travel to the area. To learn more about property investment opportunities and/or our other services, call Morris Southeast Group at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at kenmorris@morrissegroup.com.
Tags: property investment
