Orlando Condo Hotel Conversions

 

A condo hotel conversion is when an existing hotel sells the units to individual buyers, but continues to run as a hotel.

The process from the purchaser's end is the same as purchasing a condominium or home, but from the developer's point of view is considerably more complicated. To ensure the buyer's protection the State of Florida requires the condo documents to be reviewed by the state, which ensures that, amongst other things, no undue profit can be gained through condo association fee increases, and that the title transferred to the purchaser will be "free and clear".

One of the advantages of buying a condo hotel conversion is that the hotel will have existing cliental and repeat business in place. Although SEC law prohibits someone from projecting income from a unit, if the hotel is running during the sales process a potential buyer can go to the existing hotel's website and investigate room rates, occupancy etc.