International Real Estate Trends 
Condo Hotels Summary

· What is a Condo Hotel?

A Condo Hotel provides a unique opportunity to own an elegantly appointed hotel guestroom at a hotel. When not occupied, ownership of your condo hotel guestroom will include the opportunity for you to offer it for nightly rent and use by others on a daily or weekly basis.

· What are the benefits of owning a Condo Hotel?

The Condo hotel offers a number of benefits to people who live outside area. First, it gives them a familiar place to stay when they are in town without having to worry about upkeep and maintenance. Second, it allows those owning Condo Hotel units to reduce the costs of ownership - or even to profit - from the use by other guests of their hotel room. Finally, it gives the owners of all of the units a chance to share in the possible appreciation.

· How does someone purchase a Condo Hotel unit?

Most condo hotels are offered for sale by developers well in advance of property being built. Condo Hotel units are offer for sale as preconstruction projects. This means that you will able to preview the property by viewing animated renderings, architectural floor plans and even models of the units. Once you decide which condo hotel unit your are ready to purchase you will sign the purchase contract and in some case receive your condo document outlining the condo hotel policies.

· What deposits if any are payable for Condo Hotels?

Most developers will request buyers to provide deposits anywhere from 10% to 30% of the purchase price. The first 10% will be due the moment the buyer signs the contract. The balance of the deposit if the developer request more than 10% will be due six months to a year later in increments of 5% to 10%.

· When do I have to pay the balance of my Condo Hotel purchase price?

As with most preconstruction properties the balance of your purchase price is due once construction of the project is finished at closing and settlement of the transaction for the Condo Hotel Unit.

· How will buyers be aware of future updates regarding the condo hotel project where they purchased a unit?

The developer will have a website available with pictures of the construction in progress and in some instances even a real-time live webcam of the construction site that you can view 24 hours/7 days a week. Secondly the developer will also notify you in writing regarding any changes in construction schedule or amendments to the contract Via certified mail.

Kindly note that if you change your primary residence or mailing address while the project is under construction it is your responsibility to notify the developer and make them aware of such changes in writing. If you do not notify the developer of any changes in your mailing address, then you risk the possibility of defaulting on your condo hotel preconstruction property and loosing all of your deposits for the condo hotel unit.

· How will I know when the Condo Hotel will be closing?

The developer will notify each buyer via registered mail 30 to 60 days in advance of the closing of the condo hotel unit regarding your closing date.

· How may I pay for the balance of my Condo Hotel Purchase?

You have the option to pay the balance with cash funds or obtain a mortgage. You will need to speak with a specialized lender which lends mortgage money for condo hotel properties. We can recommend these types of lenders to you based on the location on the condo hotel project. The purchase of a hotel condominium can be financed. It is true with all loans, the lender's underwriting decision of whether to make the loan will be based on many factors, including the creditworthiness of the individual purchaser and the value of the unit being purchased.

· What are the expenses for a hotel condominium?

The expenses for a condo hotel guestroom include monthly assessments for common elements and other shared expenses, other specific hotel maintenance expenses relating to upkeep, staffing, housekeeping and administration, utilities, real estate taxes, and principal and interest on your mortgage, if any.

· Can a hotel room be purchased under a corporate name LLC?

It depends on the developer rules but in most cases condo hotel units may be purchased in either a corporate or individual name.

· How is the hotel room furnished?

World-renowned architects will design the interiors in each guestroom according to the luxury standards. The decor will vary based on each project but it will be elegant and tasteful for all rooms throughout, and will include a luxurious finishes, expensive bathroom and, discrete appliances and a bar area set in contemporary cabinets. It may also include the latest technology with a flat-screen television, DVD and CD players and connections for high-speed Internet access. Owners will may also have private locked closets to keep personal belongings between stays. Some designers packages vary from project to project.

· What is the cost of the furnishings?

Interior designs and furnishings are included in the total purchase price in most case but some developer will offer the furnishing for condo hotel as a separate cost to the purchase price.

· What hotel services and amenities are available to owners?

During your stay, all hotel services and amenities will be available to you. These may include everything from 24-hour room service to our extensive fitness center and spa. You may also enjoy evening turndown service, garment care, white glove service, and of course,
a round-the-clock concierge, pools, restaurants, golf and tennis club, casinos and many other services.

· Will the Condo Hotel be part of a worldwide reservation system?

Yes, in most cases they will be and the owners will be limited as to the length of time they may use the property. In most case condo hotels will allow owner to use the condo hotel unit anywhere from 30 to 120 days bases on the developer’s policy which will also be found the condo documents issued to you by the developer.

· Who and how will the revenues be split?

It most cases the developer and the owner will spli the revenues. The developer is responsible for managining and cloectting rents for all the units. The revenue splits vary from developer to developer. In most cases the split are 50/50 or 45/45/10 wich the 45/10 being for the condo hotel management company.

· How does an owner calculate the revenues for a condo hotel unit?

This is very sensitive answer that is covered by Security and Exchange Commission for all US based condo hotel properties. The SEC forbids Real Estate agent to give ANY type of projections regarding revenues for any future properties. Nothing on our webiste should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice.

However with that said we may point you in the right direction and have you draw your own conclusion.

The equation for calculating revenues for any property is as follows:

((Nightly Room rate X 365 per year) Percentage Occupancy Rate ) X percent revenue split with the developer = Owners Yearly Gross Revenue / 12 months = Owners Monthly Gross Revenue.

With this equation in mind now you will probably ask yourself where can I get the room rates. You may check competitor’s room rates on line at any number of sites such as Ortiz.com, Hotels.com, Expedia.com

The second and most difficult question is to find the occupancy rates for condo hotel in a certain location. You may search on Google or Yahoo. Ex: “New York City Hotel Occupancy Rate” or any other similar phrase to help you find some data for your projections.

· What are the advantages of using a buyer’s broker such as www.InternationalRealEstateTrends.com ?

First, the buyer price is the same with or without our services. Second, we offer an unbias opinion of multiple condo hotel projects. Third we may offer with the purchase of certain properties a contribution to the buyer’s closing cost as to where the developer does not. Fourth we help you under stand the prucased process and keep you update on future developments. Lastly we represent you the buyer and your interests not the developer’s

We hope that this information has helped you understand how condo hotels operate.  We are standing by to discuss your purchase option.

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