Effectively Managing FF&E for Condo Hotels

By Cary Tyler Schirmer Chief Executive Officer, The Higgins Group | August 07, 2010

Condo-hotels, also known as condotels and apartotels, are taking the hotel industry by storm. Initially made popular in the Miami area throughout the 1980s, these residences are back in a big way, allowing biggest names in luxury hotel brands to create a whole new real estate market. By uniting the public's desire to invest in real estate with the travel industry's quest for new properties, the condo hotel has reinvigorated the hotel construction business, altering the skylines of gateway cities from San Francisco and Las Vegas to Boston and New York.

These residences are typically high-rise, luxury properties in outstanding locations associated with well-known names in the hotel industry such as Ritz Carlton, Hilton, Starwood, Trump and Sonesta. They offer a great opportunity for a hotel to leverage and extend their brand into a luxury residence, where buyers can enjoy all the amenities of staying in a hotel, with the added benefit of owning a piece of the real estate. Most condo-hotels feature incredible amenities and guest services of four-star caliber or better, including full-service spas, work-out facilities, room service, housekeeping services, resort-style pools, restaurants and access to concierge services.

Mixed use residences like this come in many flavors: condo hotels, residential clubs, timeshares, and fractional resorts are all elements of this booming trend that's impacting the hotel, luxury travel and vacation industries. Those managing the procurement of FF & E are presented with a unique challenge of understanding what these types of residences are, the various needs of each, and the current trends in the industry.

Here is what hotel executives need to know to maximize their investments for each type of mixed use residence:

Condo-hotels:
Unlike time shares, where owners have the right to visit a property for a few weeks a year, or traditional condominiums, where individuals own the units and can do what they want with them, condo-hotels are a hybrid. It's a condominium with hotel-like features and amenities (F&B, spa, concierge, etc.). Condo owners place their units into a rental pool, which is managed by a hotel company. Investors own a specific condo and pay property taxes, insurance, and maintenance fees. Hotel management companies rent out the rooms, rotating reservations among the various units and splitting the revenue fifty-fifty with the owners. In many cases, the hotel company will also own some units. The customer experience is typical of a luxury hotel, but with larger units.

What you should know:

Choose a Social Network!

The social network you are looking for is not available.

Close

Hotel Newswire Headlines Feed  

Bonnie Knutson
Simon Hudson
Bonnie Knutson
Lily Mockerman
Philip Antoon
Mark Johnson
John Mavros
Mark Ricketts
Jesse Boles
Elaine Fenard
Coming up in June 2019...

Sales & Marketing: Selling Experiences

There are innumerable strategies that Hotel Sales and Marketing Directors employ to find, engage and entice guests to their property, and those strategies are constantly evolving. A breakthrough technology, pioneering platform, or even a simple algorithm update can cause new trends to emerge and upend the best laid plans. Sales and marketing departments must remain agile so they can adapt to the ever changing digital landscape. As an example, the popularity of virtual reality is on the rise, as 360 interactive technologies become more mainstream. Chatbots and artificial intelligence are also poised to become the next big things, as they take guest personalization to a whole new level. But one sales and marketing trend that is currently resulting in major benefits for hotels is experiential marketing - the effort to deliver an experience to potential guests. Mainly this is accomplished through the creative use of video and images, and by utilizing what has become known as User Generated Content. By sharing actual personal content (videos and pictures) from satisfied guests who have experienced the delights of a property, prospective guests can more easily imagine themselves having the same experience. Similarly, Hotel Generated Content is equally important. Hotels are more than beds and effective video presentations can tell a compelling story - a story about what makes the hotel appealing and unique. A video walk-through of rooms is essential, as are video tours in different areas of a hotel. The goal is to highlight what makes the property exceptional, but also to show real people having real fun - an experience that prospective guests can have too. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.