1. What is an apartment hotel or an apartment hotel?
Think of an apartment hotel (sometimes called an apartment hotel or hotel apartment) as buying an apartment, although this is part of a four-star hotel. Therefore, as an owner, you will get more four-star services and facilities than ordinary apartments when you are on vacation.
2. What types of services and facilities do apartment hotels provide?
If you can imagine the fine pieces found in high-end hotels, then you can imagine an apartment hotel. These features typically include resort-style swimming pools, full-service spas, advanced fitness centers, fine dining restaurants, concierge services and room service.
In some places, such as Las Vegas, you will find apartment hotels with their own casinos, retail areas and entertainment venues. In places like Orlando, you will find apartment hotels with your own water park and conference facilities.
3. What is the difference between an apartment hotel and a traditional apartment?
The biggest difference between a hotel and an apartment hotel is that the hotel usually has an owner, whether an individual or a legal person, but the apartment hotel is sold by unit. Therefore, an apartment hotel with 300 rooms can have up to 300 unit owners.
4. For hotel guests, whether they live in an apartment hotel or a traditional hotel, is this obvious?
Hotel guests may never know that a hotel has multiple owners because the hotel operates like a traditional hotel and is usually managed by famous hotel companies such as Hilton, Hyatt, Starwood, Trump or W. The appearance and decoration of each apartment hotel unit will be the same as that of a traditional hotel.
5. Who usually buys an apartment hotel?
They are mainly sold to people who want a vacation home but do not want to deal with the troubles usually associated with the ownership of a second house, such as maintaining the property or finding a renter in the off-season.
6. What are the demographic characteristics of typical apartment hotel buyers?
The range of apartment hotel buyers is very wide. Some families want to find a second home in the resort. There are some baby boomers who are retiring or are about to retire, and hope they can “winter”. There are also many investors who buy condominium units without intending to use it. Their purpose here is the potential appreciation of real estate.
7. Can you live in an apartment hotel?
Aparthotels are usually not used as the main residence. In fact, many of them restrict the use of apartment hotel units by unit owners (usually 30-60 days per year), because in the hotel’s night rental plan, the unit is the desired and needed unit, which can be provided to guests And generate income.
8. When you rent an apartment hotel, who gets the money?
The hotel management company shares the rental income with the owner of the apartment hotel. Although the exact percentage varies from property to property, the typical rent distribution ratio is 50%-50%.
9. Who finds hotel guests, and then cleans and maintains apartment-style hotel units?
The hotel management company is responsible for marketing and booking hotel guests. It can also maintain equipment and ensure the smooth operation of all hotel services and facilities.
10. Compared with buying a typical rental property, what are the advantages and disadvantages of buying an apartment?
· Worry-free ownership; no landlord issues
· Rental income can offset part or all of the ownership cost
· A fantastic holiday house that can be used anytime, anywhere
· Real estate investment when other investments seem unattractive
·The possibility of appreciation is high
·Pride of ownership-“I own Trump’s corner”
·Annual cash flow may be equal to or less than annual cost of ownership
· Pets are usually unpopular.
· The owner’s apartment-style hotel unit can be rented when the owner wants, so it is necessary to book in advance to ensure availability.
·The decline of apartment hotel units in the market may affect all hotels in the competitive market: hurricanes, terrorist threats, northern winter warmth, gasoline prices, etc., all of which may affect the unit’s occupancy rate and the revenue it generates Amount.
11. Is it difficult to finance apartment hotel units?
Not at all, but they usually reduce prices by 20%, and apartments can be purchased with less cash. It is also important to ensure that you use a mortgage broker who successfully completed an apartment hotel financing transaction. Many banks still do not do this, but with the popularity of apartment hotels, more and more banks are involved.
12. How long have you stayed at apartment hotels, where are they located?
Condo hotels have been around for decades, but the number of 4-star and 5-star condo hotels has surged across the country, starting in the Miami area around 2000. The Miami-Fort Lauderdale area still has the most condos, but areas such as Orlando and Las Vegas are developing condos at a faster rate and are likely to soon surpass South Florida. Other emerging areas include Bahamas, Panama, Dominican Republic, Mexico, Canada and Dubai.
13. What is the unit price of an apartment hotel?
It’s like asking how much a car costs. There are apartments of different quality. Obviously, some people need more money than others.
There are cheap apartment hotels there as low as $100,000. These are usually found in properties converted from existing hotels to uses. They are hotel room-sized equipment, lacking kitchen facilities, luxury franchise and other first-class facilities.
Then there is a four-star or above property, the starting price may be between 300,000 dollars to 400,000 dollars, but for a studio apartment, it may continue to rise to 800,000 dollars. One-bedroom and two-bedroom apartments are much more expensive than one-bedroom apartments. Of course, the studio is indeed equipped with complete furniture and finished products, and its size will be much larger than a typical hotel room, and may attract guests due to its name such as St. Regis, Ritz or W.
14. What is the typical maintenance cost?
The average price is about $1.00 to $1.50 per square foot, but in the most luxurious properties, the price range may exceed 2.00 square feet.
15. Do you buy an apartment hotel after building an apartment hotel, or can you buy an apartment hotel before construction?
Unless you are in a hurry to start a holiday or need to complete 1031 redemption, it is best to buy an apartment hotel as early as possible before construction. That’s when the price is the lowest and the unit chooses the largest. You may have to wait two years or more to close and own your apartment hotel, but you have locked in the price and will get the most value-added benefits.
16. Do investors need to know other information?
Buying this type of real estate is more than the original phrase “location, location, location”. Although most apartment hotels are located in ideal resorts and business districts, the most important thing is to have a good franchise with a strong reservation system.
Similarly, don’t be fooled by radical rent splits. On the one hand, real estate developers must allocate, maintain and operate hotels and their restaurants, bars, spas and swimming pools from revenue. If he gives you a large portion of the rent, he is also more likely to charge you a higher monthly maintenance fee. Of course, this is two-way. If the maintenance interval provided is close to 50-50, then your maintenance should also be more reasonable.
17. Any suggestions for investors to choose which apartment hotel?
Get good advice. This means that you do not want to rely solely on the advice provided by the on-site sales staff of the apartment hotel. You want to talk to an agent specializing in apartment hotels, who understand and understand the entire apartment hotel market, not just the facts related to individual properties. He or she will listen to your needs and then provide suggestions to determine the property that best suits your needs. You will have the opportunity to compare stores and consider the pros and cons of each available property.
A good broker may be that you have a problem buying an apartment hotel that does not meet your expectations, or it may provide you with years of vacation, the difference between a good annual income and a considerable profit at the time of sale.
18. Is it more expensive to use a real estate agent to buy an apartment hotel than to buy a unit by myself?
No. For new apartment hotels, the price is always set by the developer, and the price is exactly the same whether you buy directly from the property’s on-site sales staff or use a broker.
The broker’s commission is always paid by the developer and is already included in the price, regardless of whether the external broker is involved in the sale. Since the representative of the broker provides it to the buyer free of charge, before buying, be sure to seek their help and benefit from their advice.
19. How can prospective buyers find a good apartment hotel broker?
Ask a friend for advice on a broker, or search for “apartment hotel broker” online. Visit the apartment hotel broker’s website to see if the information they provide is comprehensive and fair. If their website seems to focus on selling a house or office space, and the apartment hotel information seems to be clear afterwards, please do not disturb. The best option is to work with a professional apartment hotel broker.
20. How do buyers know about new apartment hotel properties on the market?
Condo hotel brokers may be a good source of information because they often learn about real estate before releasing it to the public. Another option is for them to subscribe to the apartment hotel newsletter, such as our “Apartment Property Alert”. We provide this feature for free on our website http://www.CondoHotelCenter.com, and each version provides different apartment hotels on the market.