Real Estate Law
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Generally, buying a hotel room is considered a riskier investment than a normal condominium.First, there are risks when buying into an HOA community. You also have the risks that come with owning part of a hotel such as a downturn in the economy or poor management of the property. Lastly, the allocation of expenses between the condo-hotel units and other portions of the property – such as a developer-owned hotel or retail space – presents a risk. It is recommended that before you make a decision, get some comparable market sales data from your broker (if you have a broker) to figure out what you can expect from a sale. Also, it is recommended to investigate comparable properties. Examine the hotels in the area, as well as the average and predicted vacancy rates, along with average room rates. Compare all of this with industry standards. We can discuss more if you would like to do so.
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