The Definitive Writing on Condominium Hotels – Secrets unlocked…. here!
For the past 12 years (of a 25+ year hotel executive career) I have dealt with every aspect imaginable with regard to Condominium Hotels. Certified in Hotel Accounting in 2002 (CHAE), Hotel Administration in 2003 (CHA), Hotel Revenue Management in 2009 (CRME) and participating in Executive Training at Cornel University in 1994 (GMP) I now serve as an EXPERT in the Condo Hotel field. Currently my roles include that of Asset Manager, Advisor, Advocate, Owner Representative and/or Consultant for 3 and 4 diamond properties and in conjunction with Unit Owners, Board of Directors, Hotel Program Owners, Receivers, Judges, Attorneys and Certified Public Accountants.
12 years of condo-hotel service has provided particular insight into where Hotel Programs go astray, why owners have such mistrust and, I dare say, areas in which some hotel programs have not been forthright or transparent. I have written Hotel Management Agreements (“HMA”) and Rental Management Agreements (“RMA”) with attorneys specializing in the same; providing important insights from the hotelier and also from the Unit Owners perspectives in order to provide for fair and balanced agreements.
Condo-Hotels do work when carefully managed! If the metrics in your particular condo-hotel are not working and adequate returns are not being provided to owners it means that (1) revenues are not being correctly driven to the property, (2) expenses are not being kept within historic standards established and proven in the industry and (3) quality control throughout the property is not maintained. This all can be fixed.
Many condominiums are now considering the acquisition of their hotel programs and in so doing, taking the reins of the hotel business in hand and, in turn enabling the realization of higher profits. These profits are seen through (1) higher distributions to unit owners in the hotel program and/or (2) sharing in the profitability of the “ancillary revenues” (valet, restaurant, beach and gift shops) by all. What’s more, new Hotel Management Agreements can be drawn that are fair and new RMA’s can be written enabling those who participate to earn the maximum allowable after a fair Management Fee (Operator Fee) – 3% to 5% of gross revenues.
The purpose of this BLOG is to provide the reader with insights that were never before available about the inner workings of the Condo Hotel. Areas to watch, ways to increase your return and MEASURABLE STANDARD METRICS in the industry that you can compare your program too will be provided. Answers to age-old questions like how much should my unit be generating, are we generating amounts equal to similar condo hotel properties and are the rates being charged high enough, will all be answered.
I am pleased to tell you that I am writing a book entitled “The Definitive Study of CONDO-HOTELS” (to be released on April 1, 2013) and working with several universities in creating ciriculums on the same.
The best BLOGS are ones in which people share their experiences so please do not hesitate to do so. I can also be contacted at RichE@CondoHotelProfessionals.com . Thank you for your interest. I will update our BLOG on regular basis.
Richard B. Evans, CHA, CHAE, CRME, 786-897-0652, CondoHotelAnswers@Gmail.com, CondoHotelAnswers.com