• What is a condominium- hotel
• What are the major benefits
• What are the tax benefits
• Who manages the hotel
• General Amenities
• How are the suite Furnished
• Can owner Furnish
• How is responsible for furniture
• Participation in Rental Program
• Is furniture included
• Distribution of revenue from rental property
• How are rentals selected
What is a condominium-hotel?
A condo-hotel offers anyone the opportunity to own an elegant and exquisitely furnished hotel room in some of the most desirable locations in the world. Since this is a purchase, the buyer not only gets a deed to a property, which allows him to sell or transfer the room/suite whenever he chooses, but also profit from tax benefits and real estate appreciation. Whenever the room/suite owner is using his room/suite, he has available to rent through the hotels rental program.
What are the major benefits to an owner of a condominium-hotel room/suite?
The most important benefit is hassle-free ownership. When the owner, his family or friends wants to use the room/suite, they simply call the hotel and schedule their visit. While at the hotel, they can enjoy all of the amenities and services. When the room/suite is not being used, the owner can rent the room/suite through the hotel's rental program and does not have worry about maintenance and general upkeep. This is voluntary, not mandatory.
What are the tax benefits?
In most cases, just like a conventional condominium you will receive benefits for your interest on the mortgage and real estate taxes. In certain cases an owner can receive tax benefits from interest and principal and real estate maintenance. In order to determine eligibility, a tax advisor or accountant should be consulted.
Who manages the hotel and what are their responsibilities?
The hotel operator not only manages hotel rentals, but also markets the room/suites, takes reservations, operates the front desk, maintains the property, and provides the services hotel guests expect, such as housekeeping, food and beverage and concierge.
What general amenities does the condominium-hotel have?
Condominium-hotels are designed as high end resort. Rooms/suites owners will generally have access to valet, concierge, spa treatments, room services, maid service and world class restaurants.
How are the room/suite furnished?
All rooms/suites are elegantly decorated including having luxurious bathrooms. Additionally, many room/suite are equipped with flat-screen television, DVD and CD players and wireless internet. Depending on the developer and the project.
Can owners furnish their own room/suite?
If the room/suite is going to be placed on the hotels rental program, the owner must comply with the hotel's furniture selection, to ensure consistency throughout. However;
The owner may bring in personal items for the duration of a stay, which must be removed or stored upon departure.
Are rooms/suites owners responsible for the furniture?
Owners are responsible for their own room/suite and the contents within. Room/suite owners are required to buy the hotels furniture replacement program, which enables the hotel to change furniture as necessary.
Is the furniture included?
Generally speaking, some developers will furniture is charged separately. However; if you are elected to participate in the rental program within 30 days after closing, we will provide you with a credit equal to the price of the furnishings. Each developer has its own policy visa vi's this subject.
How is the revenue from the hotel rental program paid to owners?
The cost factor for hotel management is equal to 10% of the room/suite revenues. The balance of the operating income is split 50/50 between the owner and the hotel.
How are hotel rooms/suites selected for rental?
The rooms/suites will be selected through a specialized computer reservation system that assigns “rotation points” to rooms/suites as they are occupied. The rooms/suites with the least number of rotation points are the next to be rented in the system, provided that they meet the guests' requirements and a guest has not requested a specific room/suite. Through this program, rooms/suites will be fairly reserved throughout the hotel. Rooms/suites owned by the developer or the hotel lot owner may receive preferential treatment with respect to rental.
• How can I learn more about the program
• Rotation procedure
• Rental agreement terms
• Termination and Default
• Assessment and Fees
• Insurance Requirements
• debt Services
• Property Tax
• Other Charges
• Room Rate
Will I receive a percentage of the revenues earned from the other facilities at the hotel?
If the room/suite owner decides to participate in the hotel's rental program, the owner will receive a portion of the revenues from the room/suite. However, room/suite owner does not receive any other additional revenue from any of the hotel's services (i.e. restaurants, spa, shops)
How can I learn more about the condominium-hotel program?
A homeowner liaison from the specific hotel management group will be able to answer all questions pertaining to the rental agreements of your hotel room/suite. Call 305-662-5011 for more info.
RENTAL PROGRAM OVERVIEW
Revenue- Net revenue represents the collected revenue from the rental of the room/suite after deducting certain hotel expenses. Thereafter, the owner and hotel operator split the net income. This is generally distributed on a quarterly basis.
Reserve-4% of gross room revenues will be retained to maintain all rooms/suites at the hotel's standards. These reserves are generally utilized for replacement costs of various items within the hotel including furnishings and public amenities.
Rotation Procedure - room/suite will be rented based accommodating specific guest requests. Rooms/suites especially designed to meet Americans with Disabilities Act requirements, and selected other rooms at management's discretion, will participate base on specific guest request.
Rental Agreement Terms
- The room/suite must at all times be maintained according to the standards of the Hotel and the Hotel Group management.
- The initial lease term will vary from one year up to 5 or 6 years. The lease terms after the initial term are re-negotiated with each owner's requirements in mind.
- Owners may occupy their room/suite at any time based on availability.
Termination and Default - The Rental Agreement may be terminated by the hotel management company with or without cause upon 30 days written notice to owner. The agreement terminates upon the sale or conveyance or transfer of title unless the hotel management company approves the assignment of the Rental Agreement to the subsequent owner. The owner can terminate at the end of any rental management term based upon written notice. Notice provisions vary.
Insurance Requirements- The owner is responsible for obtaining insurance coverage for liability and room/suite contents.
The properties will specify coverage requirements. Each insurance policy must have an endorsement stipulating that the policy may not be canceled or changed with at least 30 days' prior written notice to the hotel management company. The policy must contain an endorsement waiving any rights of subrogation against the property owner.
Other charges- If the owner declines daily maid service during any owner occupancy, the owner will be charged a nominal re-entry and cleanup charge to prepare the room/suite for rental following the end of each owner occupancy period. The owner will incur charges for mini bar, long distance telephone, business center, food and beverage, and room service use during an owner occupancy period, and must pay for all such services at checkout.