Third Party Management Companies Come to the Aid of the Condo-Hotel
Perched on the crest of the real estate boom, the condo-hotel rose to prominence as a new and unique real estate model for Americans who found themselves with a surplus of time and money. A real estate bubble burst and economic crash later, the same Americans now find themselves struggling to keep their lofty investments afloat while the entire condo-hotel industry finds itself gasping for air.
The condo-hotel marketplace has especially been hurt by buyers’ inability to close because of the lack of financing and because the concept is struggling across the nation. Condo-hotel owners share revenue generated by hotel room rentals with the operator, but drops in visitor volume and room rates have cut into that. Many buyers who purchased the hotel rooms from developers hoping to get paid every time the room was rented, now find themselves at the back of the line regarding room occupancy, rate and marketability.
As dour as the situation appears, there is hope. And there is an entire new business model evolving out of the ruin. Third party Management Companies, institutions designed around an owner centric model that maximizes the earning potential of the given investment property and works solely for the best interests of the owner, are coming to the aid of the condo hotel marketplace.
Jet Luxury Resorts, one of the few hospitality companies growing within this turbulent market and economic downturn, is fast transforming the condo hotel marketplace through a unique business model and evolution of thought. The premiere national condo hotel management company provides the reservation solution to not only owners but to luxury resorts as well by boosting occupancy rates. Jet Luxury Resorts is able to offer exclusive, luxurious yet affordable inventory to the rental community through honest, lucrative and dedicated service to condo hotel and fractional owners.
In the past, condo-hotel owners have faced rental programs bogged down by hidden fees and property managers and developers that presented conflicts of interest. Third party management companies offer a better solution with a freedom that allows the company to remain competitive within the market and satisfy the owner’s ability to increase their occupancy and rental revenue.
For instance, in Las Vegas, where the condo hotel model took off, Jet Luxury Resorts represented over 25 owners at a condo-hotel. Owners who bought in years ago were promised a strong revenue stream, but when the hospitality industry went belly up, the hotel had to first focus on room occupancy for their regular hotel rooms, thus leaving the condo-hotel owners frustrated and out in the cold. Many were struggling to even pay their carrying costs. Enter Jet Luxury Resorts, whose sole priority was not only to raise the rental revenue for these owners,
independent of the hotel, but also to maintain a vigorous maintenance and upkeep program on these owner’s investments.
"Jet Luxury Resorts has made a tremendous effort to react to the current hospitality environment,” says Richard Brosal, President of Jet Luxury Resorts. “We have adapted our business model to stay consistent with our core value; maximize revenue potential for owners that are part of the Jet Luxury Resorts Family while providing a truly affordable luxury rental option to the rental community. This win-win solution we believe will make Jet Luxury Resorts a noticeable force in the vacation rental and condo hotel marketplace for years to come.”
A direct reflection of these third party management companies’ success is illustrated by Jet Luxury Resorts’ recent addition of five new properties to the company’s inventory. The Trump Waikiki in Hawaii, The JK Place in Italy, The St. Regis Aspen, The St. Regis New York and The Buena Vista Luxury Villas in Costa Rica are the latest in a growing list of resorts being added to the company’s repertoire.
Over the past eighteen months, third party management companies, such as Jet Luxury Resorts, have energized the condo-hotel industry. These companies are bringing owners and renters together to work in the owner’s best interests by providing greater income to offset their investment while simultaneously bringing high quality, yet affordable product to the marketplace, and in the process, handing the entire Condo Hotel Industry a much needed lifeline.
