in the Condo-hotel Industry; Will Close $1.2 billion
in Hotel Acquisitions by the End of 2005
MIAMI, Fla. - October 26, 2004 - The Falor Companies, a hospitality firm with offices in Miami and Chicago, has positioned itself as the leader in the condo-hotel industry with a large portfolio of acquisitions currently totaling 15 properties. The company attributes their rapid growth to a $25 million investment from The Mitchell Companies, a Miami-based commercial property owner.
"The key to our rapid success comes as a result of the significant cash investment from The Mitchell Companies," said Robert Falor, president and CEO of The Falor Companies. "With the cash infusion, we have the advantage of being able to preemptively acquire hotel assets for condo-hotel conversions."
Two years ago as the condo-hotel industry trend began, Falor realized that the key to success was to have the funding to be able to initiate hotel purchases before the property goes to market. According to Guy Mitchell, president of The Mitchell Companies, Falor found a niche and developed a unique business plan with impressive turnaround times. "I invested during the inception, which has proven to be a profitable venture as The Falor Companies has implemented an aggressive growth strategy with huge success."
The Mitchell Companies has been in business for more than 20 years with ownership of numerous multifamily apartment buildings, as well as commercial properties including shopping centers, office buildings and commercial warehouses.
"My initial investment was just the right support to get the company moving and ignite interest from other institutional investors," said Mitchell. "The company has now been able to move forward in joint ventures with Colony Capital, LLC and Oaktree Capital." Additionally, The Falor Companies has institutional equity commitments in excess of $400 million to use moving forward with future acquisitions.
The Falor Companies has created an impressive record of condo conversion sales in the last six months. In South Florida alone, their condo-hotel projects include joint ventures with Colony Capital, LLC in the purchase of the Mayfair House Hotel in Coconut Grove and Cheeca Lodge & Spa in Islamorada with Cheeca Holdings, LLC. Individually, the company recently acquired two South Beach landmarks, the Breakwater and Edison hotels, and plan to convert the two properties into one, 113-unit resort-style condo-hotel. Their purchase of the Tides on South Beach is scheduled to close in mid-November.
In addition to great success in the South Florida market, two recent purchases in Chicago have also been profitable ventures - the Century Building in Chicago's Loop at 202 South State Street and the Hyatt Printers Row in Chicago, which sold out Phase I in less than three weeks.
With plans to acquire properties across the nation in major markets including Las Vegas, New York, Boston, Washington D.C. and throughout California, as well as additional properties in Chicago and Florida, The Falor Companies will have closed deals in excess of $1.2 billion in hotel acquisitions by the end of 2005. All purchases are slated for full or partial conversion to condo-hotel.
As an asset management firm, The Falor Companies turned its attention toward acquisitions and focused on condo-hotel conversions as their main growth vehicle at a time when new construction projects proved to be difficult. While other developers project their new-build condo-hotels to open in two to three years, The Falor Companies already have condo-hotels open, operating and on the market.
"With the stock market so volatile, many people are reallocating their priorities," said Falor. "We are encouraged by the number of buyers who have recognized the value of a hotel-condominium unit. They are purchasing a unit that has value while they can enjoy a vacation home with luxury amenities and services."
The Falor Companies are known for selecting well-known hotels in desirable locations and renovating them to meet current luxury standards. Once renovations are complete, the company converts the property to a condo-hotel and brings in a well known, luxury hotel operator to manage the hotel. Currently, Kor Hotel Group and Kimpton Hotels & Restaurants have contracts to manage several of their properties.
According to Falor, the key to a successful condo-hotel is comprised of three variables, "In order to have a successful and profitable condo-hotel, we make sure to select a property in a prime location within that city. We offer luxury amenities and services and we bring in a high-end hotel operator. Without these components and highly desirable price points, a condo-hotel may have trouble selling out." Prices for a Falor property generally start in the low $200,000's.
The Falor Companies is a diversified hospitality firm specializing in development and asset management. The company has established itself as a leading entity in the United States involved in the acquisition of select resort and urban hotels for the conversion to condo-hotels.
|Also See:||Falor Companies Completes $12 million Renovation the 243 room Read House; The 78 Year Old Chattanooga Hotel Will be Branded Sheraton / October 2004|
|Kimpton Hotels & Restaurants Appointed to Manage the Mayfair House Hotel in Coconut Grove, Florida by Colony Capital, LLC and The Falor Companies / October 2004|
|The Falor Companies Acquiring The Tides Hotel on Miami's South Beach; Will Convert into a Condominium-hotel / August 2004|