Condo Hotel Management

CONDO HOTELS

Key Management Group manages successful Condo Hotels in the Caribbean and Central America. The different local laws related to tax benefits and investment incentive opportunities for developers has attracted more and more developers to venture into this growing sector of the industry. It is the Hospitality Industry “with a twist”.

Key Management Group’s marketing force can fill rental pool inventories to record levels, while matching or exceeding the hotel operation service requirements of any of the major Hotel Franchise Companies.

Key Management Group understands the complicated laws and formulas related to a Condo Hotel operation. The experience acquired by Key Management Group in accounting for the complicated formulas of revenue distribution between the operator, rental pool, and developer is priceless.

THE DEVELOPER

What a great scenario! Develop a project, build it, and recover your investment before the hotel opens! In many Caribbean and Central American countries, it is possible to recover over 100% of the investment before the first guests even arrive. Between the local tax incentives, and the pre-sale of Condos, the developer’s up-front risk is minimized.  In Puerto Rico, for example, local development laws are very strict but in the case of Condo Hotel development, the regulations are very favorable for this type of investment. It requires experience and know-how to navigate through the maze of local requirements and permits.  Key Management has the extensive knowledge and expertise to insure a fast and cost-effective acquisition of all permits and approvals.

THE CONDO OWNER

The Condo Hotel owner/buyer has a deed that is worth the real estate value of the property. The owner is entitled to use his Condo for a specified number of weeks or nights per year. The Owner places his Condo in the hotel rental pool when not in use by the Owner. When a Condo is rented, a portion of the revenue is placed in a “rental pool” account. At the end of each month, depending on the conditions placed in the Developer/Buyer contract or prospectus, the owner receives a check from the rental pool. All owners receive the same amount regardless of which units were rented. In many cases the owners recover 100% of their mortgage payment each month, thus making their investment pay for itself.

THE HOTEL OPERATOR

Key Management Group has the experience and ability to operate and market the property on behalf of the rental pool as a first class hotel operation. In many cases the Condo Hotel can be franchised by most of the U.S. based Hotel Companies. It is imperative that services and facilities provided by the resort are in accordance with the highest standards imposed by any Franchise Company or established rating systems. Therefore, Key Management Group’s vital input and recommendations are focused on protecting the “real estate” value on behalf of the owners and the Resort. 

The higher than "standard" service and amenities combined with a renowned Franchise Flag provides for increased real estate value.

THE HOTEL FRANCHISE COMPANY

The Hotel Franchise Company in many cases is eager to get involved with a Condo Hotel for three reasons.

1. Many Condo Hotel locations are built in areas where local zoning rules would prohibit the building of a new hotel but would allow a “Condo Hotel”.

2. In many cases, it provides for the Franchise Company to have a presence in the selected area.

3. Many Hotel Franchise Companies want to further develop and enhance their own “Suites” brand since many Condo Hotels have larger apartments than the average “All Suites” Hotel.

Key Management Group is closely affiliated with two major Hotel Franchise Companies at this time.

THE GUEST

Guests benefit greatly by staying in a Condo Hotel. They get the space and comfort of an apartment for the price of a hotel room!

From the guest’s point of view, the rental pool issue and all the other complicated "behind the scenes" Owner/Developer/Operator formulas are seamless. The total "Resort vacation" experience is what matters to them.

Key Management Group can operate the Resort in accordance with the Franchise requirements and better. The better the product, the higher the rate – the better the rental pool payments, the higher the franchise fees. It's a win-win for everyone.