The Best of Both Worlds The Hotel-Condo Concept

So how does it work? In a hotel-condo, property investors buy hotel rooms just like they would buy a timeshare or other investment property. Then the rooms are managed and leased out by the hotel management company, just like any other hotel room.

However, unlike timeshares, only one person owns the room and the owner has more flexibility in how much time he or she can spend there. Plus, you have the opportunity to make some of your money back, where timeshares are strictly an expense, said Jay Jameson, vice president of operations and development for Triton.

And unlike purchasing a condo, owners don’t have to worry about finding a management company to handle the business of renting the property.

“It’s a hassle-free rental property,” said Jameson, who explained that unlike other rental properties, owners don’t have to worry about maintenance and cleaning services. All these services are worked into the deal.

So what’s the downside to buying into a hotel-condo? First, owners may get less flexibility than they do with a condo – they have some restrictions about how much time they can spend in their suite, especially if they want to try to make money off of rentals. And second, many hotel-condo programs are vulnerable to tourism declines and low volume periods. But according to Jameson, Park Lane Hotel has a direct lease-back program that allows investors to avoid some of the tourism market fluctuations associated with other hotel-condos.

Since purchasing the Park Lane Hotel, Triton Real Estate Group has made a number of renovations to the building, including updating the exterior and the pool facilities, as well as the conference rooms. And they also have plans to renovate the lobby and dining facilities, and add a pool-side cocktail cabana. The hotel suites offer all the comforts of a high-end condominium, such as a complimentary breakfast and afternoon cocktail hour with beer and wine, high-speed wireless Internet access, shuttles to the beach, fireplaces in most suites, outdoor pool and Jacuzzi, exercise room, conference space and catering facilities. All the suites will feature granite countertops, kitchens, balconies, flat-screen televisions and island-style décor. Just over 30 percent of the suites have loft bedrooms, and they range in size from about 500 to 600 square feet. Because all these amenities are included when investors buy their suites, units are moving fast.

“One-third of the units were presold, and in just over six months we’ve sold about 50 percent of the units,” said Jameson. “The way things are going we could close out by the end of the year.”

Think a hotel-condo might be for you? The key to successful investing is to always do your homework before making any decisions. For more information on the Park Lane Hotel and their ownership programs, visit www.tritonrealestategroup.com, or call them at (843) 842-4600.