News for the Hospitality Executive
|By Jim Butler, Hotel Lawyer, Author of www.HotelLawBlog.com
Condo Hotel Lawyer Las Vegas. On November 30, 2006, I will be participating in the first two opening general sessions of IMN’s Symposium on Financing, Developing and Operating Condo Hotels at the Mirage in Las Vegas, Nevada. This will be an interesting opportunity to compare notes and take the current pulse of the industry. Is the bloom off the rose? Can condo hotel deals still be done? Where is the opportunity now? How do you capture it? What are the pitfalls? How do you make a condo hotel deal work today?
Why are more than 550 people coming to a condo hotel symposium in late 2006??? Obviously there is a huge continuing interest in the condo hotel phenomenon, but is the model sustainable in the current environment? Unless there are unique features, great sponsorship and market validation? Where are we? What is happening?
Where are we?
Our perspective. We have been the business and legal advisors to clients on more than 80 hotel-enhanced mixed-use projects, all of which have at least a significant condo hotel element. These deals are in every major market in the U.S., as well as Latin America and Europe.
Here are some thoughts gleaned from our experience:
A residential condo slowdown in the US should not be shocking to anyone.
Have you read what is happening to homebuilders’ business? Have you looked
at recent stock performance for homebuilders? Why would the market for
condos in a hotel be that much different?
The condo hotel boom is barely starting in China, India, Latin America and Europe. It may have a long way to go there before reaching the “mature” end of the cycle, as we think it has in the United States.
The bottom line.
My friend Taz Brown, VP with Sunburst Marketing and one of the top luxury residential marketing guys in the country, recently said “The field is getting slippery and you need long cleats to run the field, much less score.”
That statement pretty well sums it up for the condo hotel situation right now. But there is a bright and enduring future for the hotel enhanced mixed-use. And this is something that would have been all but impossible without the condo hotel phenomenon. But to take advantage of the situation you have to adopt a new way of thinking as condo hotels morph into a reliable and predictable component of projects.
But more on that in the near future . . . and after I take my own temperature at IMN’s Condo Hotel Conference in Las Vegas. Maybe I am one of the only people on the planet who thinks the tide has turned and success will be more elusive, calling for new approaches and strategies. (including going back to the Condo Hotel Fundamentals—5 Keys to Success!)
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|Also See:||The Previously Announced $3 billion Las Ramblas Project in Las Vegas Pulls the Plug; Construction Costs Came In More than Twice the Estimates / June 2006|
|Donald Trump's Las Vegas Project, the $500 million Trump International Hotel & Tower, Not Beset by Problems Facing Other Proposed Vegas High Rises / March 2006|
|Weakening Demand for Condos Leads to Re-evaluation of the Canyon Ranch Living Community in Bethesda, Maryland / August 2006|
|Peter Morton's Planned $1 billion Condo Hotel Expansion of the Hard Rock Hotel Canceled; Sales Staff Let Go, Buyers Offered Refunds / February 2006|
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