Condo Hotels In Biloxi
Has anyone had any experience with these? Looks like Biloxi could turn out to be the next Vegas and i would like to get in on one of these projects. I rent out condos on the beach, but never a condo hotel where i would assume you are in direct competion with the hotel part of the resort. Also, do I pay to stay if i own one?
[ Edited by Palmguy30 on Date 11/08/2005 ]
HELLO?
No need to yell.
Maybe nobody on this board has had any experience with condo hotels.
I don’t know if I can really offer any advice on these. I started to buy a couple of them in FL recently, but backed out. There were too many issues in the management contract that were red flags to me.
Anyway, the way theirs was structured, you weren’t in competition with the hotel, you were part of it. They rented out your room in rotation, just like any other room on the property. In fact, all of the income from things like the conference rooms, vending services, etc., was pooled and distributed proportionately to the investors.
If you wanted to stay there, you only paid the daily cleaning fee, and that was all. They also had a much larger private suite, that wasn’t rented out, but rather held for use by the owners and investors.
The one thing that can be difficult is financing. There are very few conventional lenders that will do these. And when they do, they want 20%-30% down. But, typically whoever is selling the property has arranged for financing and it oftentimes is through private lenders.
Here’s a couple of links that might be of interest.
http://ezinearticles.com/?Condo-Hotel-Trends---A-Look-at-the-Big-Picture-in-Vacation-Home-Ownership&id=553
http://www.condohotelcenter.com/