The Residences at Atlantis has been a huge success and they will be in New York at the Four Seasons hotel this week hosting a private cocktail reception. Due to my relationship with the developers of Atlantis, they have asked me to extend this private invitation to you. I have personally been to Atlantis three times this year alone, and I can tell you with great confidence that if you are looking for a first class project with a track record that is second to none, you must attend this cocktail event at the Four Seasons. Please read the email below from Mr. Reiner Perez of the Residences at Atlantis.

The billion dollar vision is finally becoming a reality. Construction for The Residences at Atlantis has begun along with
the entire 60 acre expansion. Dolphin Cay is filled with water and 6 of the 17 Dolphins are pregnant and thriving. The Aquaquest Waterscape is in it's final stages and the new 120 ft. Slide Tower, featuring four thrilling water slides, should be up and running by the Spring of 2007! The main arrival experience has exceeded our expectations, with views from the moment you enter the lobby and Bobby Flay's Mesa Grill, directly overlooking the Atlantic Ocean. The Residences at Atlantis is on the third floor of construction and should be complete by January 2008. I have attached the live web link of the construction site:

Due to the overwhelming response we have received on this project, speed of construction and the inquiries from clients in the tri state area, we will be in New York next week for a private Invitation Only cocktail presentation. I would like to cordially invite you to our private cocktail reception being held at the Four Seasons Hotel in New York on October 18th from 6:30pm - 9:30pm. I will be in New York on the 17th through the 19th meeting individually with interested prospects.

Please forward an email to me at: hansenhomes@gmail.com or visit our sign up form if you have a strong interest in acquiring one of the residences and will be attending, so that I may update our VIP list, or if you would like to schedule an appointment during my stay.

Atlantis Condo Hotel link

Atlantis Invitation Only Cocktail Presentation Request Information link

The Residences at Bonaventure Resort and Golden Door Spa Condo Hotel in Weston, FL is one of the world�s finest resorts. Included are 2 PGA championship golf courses and tennis in a subtropical climate that inspires relaxation. The $85 million transformation of an already world class resort brings unparallel experiences in luxury and pampering in a 48,000 square foot Spa.

You can purchase a residence in this beautiful hotel condo that range in size from 869 sqft to 1291 sqft. Choose a junior suite, one bedroom or a large 2 bedroom suite. Prices start from the mid $400�s.

The Residences at Bonaventure Resort and Golden Door Spa in Weston is consistently ranked among the world�s top Resort and Spa destinations.

Number of Floors: 4
Number of Suites: 96
Number of Rooms: 496

The Cheeca Lodge condo hotel in the Florida Keys is getting ready to launch sales for units in the main lodge. The Cheeca Lodge is the most famous resort in all of the Florida Keys and has been a top destination for many years. All of the rooms in this condo hotel have been completely renovated and beautifully appointed. To find out more information about the Cheeca Lodge Condo Hotel please contact Paul Hansen 786-586-4778.

This is a great article written on condo hotel living by Christopher Palmeri for Business Week Online.

When Keith and Kimberly Hartke heard that the Fontainebleau Resort in Miami Beach was building a new condo hotel tower, they were ready to buy, quickly plunking down $600,000 for a 1,000-square-foot one-bedroom unit. Keith had vacationed at the hotel as a child and returned as a newlywed with Kimberly years later. But what sold the Hartkes on investing in a property wasn't their history with the resort. It was the fact that they could rent the unit out like a hotel room when they weren't using it. "It's not just a condo at the beach," Kimberly says. "We're getting in the hotel business."

The Hartkes are charter members of the latest trend to hit the hospitality industry: the condo hotel. 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 and begun altering the skyline of cities such as Miami and Las Vegas.

» Continue reading "Condo Hotels"

The Residences at Atlantis
Paradise Island, Bahamas

The Residences at Atlantis has officially gone from reservations to contracts. The Atlantis condo hotel is the only project of its kind in the Bahamas. The Atlantis offers amenities that art truly second to none in the Bahamas with a 50,000 square foot casino 11 swimming areas and miles of beaches to name just a few. With the development team of Turnberry and Kerzner you know this will be an incredible condo hotel. If you have any interest at all in the Residences at Atlantis now is the time to buy before prices go up and availability goes down

Hansen Homes has just launched its new condo hotel section to keep you up to date on all of the latest condo hotels in Miami, South Beach, Miami Beach and Las Vegas. Condo Hotels are one of the hottest niches in the real estate market today. To learn which one of the Condo Hotels are right for you, please feel free to call Paul Hansen at 786-586-4778. Some of our hottest condo hotels include The Residences at Atlantis (Paradise Island, Nassau Bahamas), The Cheeca Lodge (Islamorada, Florida Keys), and Las Ramblas in Las Vegas, Nevada. Hansen Homes is you number one source for information on the best condo hotel projects in South Florida and Las Vegas.

DEVELOPMENT: W hotel takes Sin City spin

$1.7 billion luxury condo-hotel aims for hip clientele

By HUBBLE SMITH
REVIEW-JOURNAL

Starwood Hotels and Resorts plan to make its W hotel in Las Vegas a flagship property for the upscale brand's "global footprint," W Hotels Worldwide's president said Tuesday while giving details about the $1.7 billion project.

The hotel at Harmon Avenue and Koval Lane will have a mix of 3,000 hotel and residential units, more than 10 restaurants and nightclubs, a 75,000-square-foot casino, 300,000 square feet of meeting space and a spa and gym, W's Ross Klein said. It's scheduled to open in 2008.

Klein said Las Vegas has been at the top of W Hotels' development strategy for years, ranking No. 1 or No. 2 on the request list of W guests along with South Beach in Miami, where a W Hotel is already under construction.
"It's also an opportunity for us to redefine and reinvent what an urban oasis is," he said. "The W in New York came into an urban environment with a different point of view. When you come in off the street in New York, it's a retreat, an escape. That's going to be the same design point of view we put into the W in Las Vegas."

Adam Frank and his partners at Edge Resorts started talking with Starwood about developing a W hotel in Las Vegas at the site of Bourbon Street casino on east Flamingo Road. Even after acquiring an adjacent apartment complex for a total of 8 acres, it wasn't enough land.

Edge Resorts sold the Bourbon Street property to Harrah's Entertainment last month and bought 21 acres at Harmon and Koval, including the existing Ice nightclub and two separate parcels from Fort Worth, Texas-based home builder D.R. Horton, for $108 million.

Edge Resorts entered a joint venture with Starwood Hotels and Resorts and will be a 75 percent owner of the W hotel. Starwood owns the remaining 25 percent and will manage the hotel.

"They wanted a bigger property and they really wanted to be on Harmon," Frank said. "Twenty-one acres really gives us a lot more flexibility to do what we want to accomplish. We want to build a destination resort, but at the same time, we want to have an intimate feel to it, that signature W feel with great night life and a blend of restaurants."

Frank said the project combines the hottest, most sought-after hotel brand in the world with one of the most vibrant hospitality markets in the United States.

"We really think that location is the future of Las Vegas," he said. "There's so much happening right around us."

With some $20 billion in planned development, from the Hard Rock Hotel expansion to MGM Mirage's Project CityCenter to the Palms' new hotel and condo towers, the Harmon corridor is poised to become a hip, happening location, Klein said.

"I think it's going to be a destination with a very specific offering, sort of a pop culture, and I think we're going to be sort of an anchor," he said.

W Hotel Las Vegas will offer guests "extraordinary experiences" at every turn through the brand's lifestyle elements, including indulgences and experiential surprises that will be unheard of even for Las Vegas, Klein said.

Klein said he expects the new resort to compete with the Hard Rock Hotel, Mandalay Bay, the Palms, Wynn Las Vegas and Four Seasons.

Deutsche Bank analyst Marc Falcone said it was important for W to finally land in Las Vegas.

"I think W needs exposure in Vegas given what the brand stands for," he said. "It's going to be a strong fit for Las Vegas. This is a very powerful location."

Condo-hotel and residential units will go on sale in the fourth quarter, priced from $550,000, offering a combination of poolside cabanas, studios and one- and two-bedroom condominiums, all attached to the W hotel.

Klein said the project is in the final stages of architectural plans and design reviews.

The first W hotel opened in New York in December 1998. There are now five hotels in New York and 20 more around the United States and worldwide with another 20 under development, Klein said.

The Associated Press contributed to this report

For More Information on W Condo Hotel Las Vegas

LAS VEGAS � Starwood Hotels & Resorts Worldwide Inc. intends to expand dramatically in Las Vegas, bringing its hip and urban W brand to one of the most competitive and coveted markets in the leisure industry.
Starwood is joining Edge Resorts, a group of private investors, in a $1.7 billion project that will involve a mix of approximately 3,000 hotel and residential units and a 75,000-square-foot casino, along with 300,000 square feet of meeting space and shops. It's slated to open in 2008.

Edge Resorts will control 75percent of the project. Starwood, W's parent company, will own the remainder and manage the W Las Vegas hotel.

The project will sit on 21 acres located just east of the Las Vegas Strip, near the popular Hard Rock hotel-casino.

"The other properties will orbit around us," said Ross Klein, senior vice president and chief marketing officer for W Hotels Worldwide.

Klein said he has been trying to bring one of the sleek and modern hotels to Las Vegas since the launching of the first W in late 1998. Klein said W customers have been clamoring for one in Las Vegas, but he could never find the perfect location, partner, timing and scale.

With Las Vegas gambling companies still churning out hefty profits, Klein said the market is "still red hot and white hot for innovation. W Las Vegas will definitely be a laboratory for a lot of what we are doing."

Klein said he expects the new resort to compete with Hard Rock, Mandalay Bay, the Palms, Wynn Las Vegas and Four Seasons.

Deutsche Bank analyst Marc Falcone said it is important for W to finally land in Las Vegas.

"I think W needs exposure in Vegas given what the brand stands for," he said.

Edge Resorts President Adam Frank said he isn't concerned about the glut of Condo Hotel projects slated to be built in Las Vegas.

"The W brand is obviously one of the strongest names in the hospitality business," he said. "The Vegas buyer of condos has become more savvy."

New York-based Starwood, one of the biggest hotel operators in the world, is also part of a group of investors that bought the Aladdin megaresort on the Strip. It also owns the Westin Casuarina in Las Vegas.

Starwood shares rose 50 cents to close at $60.35 in trading on the New York Stock Exchange

Second record-breaking profit year in a row

Lodging Econometrics, a hotel real estate forecasting firm, estimates 917 hotels with 100,559 guest rooms will open in 2007 nationwide, the highest total for new openings since 2001, but far removed from the peak set in 1998 when 1,532 hotels with 156,471 rooms opened.

Because the supply increase forecasted for 2007 is modest - just 16,101 more rooms than 2006 - and because the industry has already seen 26 consecutive months of improved demand, which is expected to continue well into the expansionary phase of the present cycle, 2007 is on track to become the second record-breaking profit year in a row.

It's expected to exceed the record $26 billion anticipated for 2006, said Patrick Ford, president of Lodging Econometrics in Portsmouth, N.H.

"We're still too early in the cycle. In many markets, the economic recovery has not been broad enough to produce sufficient job growth, so business travel, although improving, has not as yet fully recovered or pricing power completely returned," he said.

Lodging Econometrics estimates that by the end of 2005, between 10 and 12 markets of the top 25 will still not have fully recovered to pre-9/11 operating levels. That indicates that there is still room for additional industry profitability growth toward the back end of the decade.

The majority of planned-construction growth is scheduled to take place at highway locations, in smaller cities and in the outer suburbs of larger cities, mostly in the upscale, midscale and economy segments.

The leading upscale brands are Marriott's Courtyard, Residence Inn and SpringHill Suites with a combined 50 percent construction pipeline share within the chain scale, and Hilton's Garden Inn and Homewood Suites with a 33 percent share.

Holiday Inn Express, with a 29 percent share, and Hampton Inn and Suites, with 22 percent, are the fastest-growing brands, along with Comfort Inn and Suites in the midscale segment, while Microtel, with a 46 percent share, is the economy leader.

Supply shrinking in some markets

Some 58,240 new guest rooms were added in 2004, resulting in a 1 percent net supply increase. Although 70,646 rooms will be added this year, early indications are that net new supply growth will actually finish below 1 percent this year.

"Despite a modest flow of new hotel openings, 11 of the top 25 markets actually show negative supply growth through the first half of 2005, up from six markets in 2004. The reason is that a significant number of guest rooms are going 'off market.' In many markets, hotels are temporarily closed because they are being reflagged and are undergoing extensive renovation programs. In the Southeast, it's because of damage incurred during last year's hurricane season," ford said.

Several functionally obsolete properties from the 1950s and 1960s, particularly in resort communities and in many smaller markets , are being forced to close by a newer generation of products in the midscale and economy segments that are more contemporary and have greater consumer appeal.

In larger tourist destinations, like Anaheim, Calif., Orlando, Fla., Phoenix and Hawaii, along with the Florida and California coasts, and at golf and ski destinations, old properties with prime locations are sometimes being demolished for new hotel construction, but more often than not, for condominium projects that will serve as primary or secondary residences.

In urban centers - financial and technology centers are the best examples - in such cities as Washington, D.C., New York, Boston, Miami, San Francisco and Los Angeles, some hotels are converting a portion of their guestrooms into residences.

"Across the country, there are 28 existing hotels known to be joining the 'condo-hotel' bandwagon. Seventeen are converting a percentage of their guest rooms into residences, while another 11 are completely converting to condo hotels, selling their entire guest room inventory as individual condominium investments," Ford said.

"In the new construction pipeline, 101 hotel projects are planning to include a residential component. Another 46 will be pure condo hotel projects, selling their guest room units as individual condominium investments."

Adding a residential component to a new high-end, full-service hotel project, or planning to sell the completed guest rooms as individual condominium investments is one way large hotels can be built this early in the development cycle. The early sales proceeds provide comfort to both the developer and the lender; enabling the project to carry less long-term debt and improving the project's overall feasibility.

"These are classic examples of where all types of real estate migrate to their highest and best use to provide the highest and best return on invested capital. In some cases, that means residential and condominium development as a replacement for, or an enhancement to, hotel development," he said.

In several markets, the first wave of new supply additions in this new upcycle will go to replace "vanishing" inventory before contributing to any positive net new supply growth. This overall refreshing of the industry's inventory is good news for investors, operators and consumers alike.

Leading hotel companies in 50 largest markets

Because it's the strategic planning season, Lodging Econometrics separately studied all hotel construction and reflagging project records for the leading companies that have an array of brands across the various chain scales in the 50 largest cities.

These markets are important because they are the top economic and leisure destinations in the country and therefore are the top targets for brand distribution and marketplace presence.

The study revealed:

+ Marriott has the most projects and gues trooms in the development pipeline in these markets with 189 projects of 31,335 rooms. Hilton is second at 183 projects of 26,682 rooms. Marriott has the dominant development position in 19 of the 50 markets; Hilton leads in 16 of the markets, while Starwood follows in nine.

+ Marriott has the most open and operating hotels with 1,310 hotels of 263,272 rooms, followed by Hilton with 1,125 hotels of 224,126 rooms. Marriott has the most hotels in 31 of the 50 markets, Hilton in 14 and InterContinental in two.

"It's a neck and neck battle for market share between the two giants, Marriott and Hilton," said Ford, "but the development pipeline indicates that Marriott is likely to retain its overall lead in the nation's largest markets, at least through the end of the decade." s

A Miami healthy living community being built by WSG Development Co. received a $386 million construction loan from Hypo Real Estate Capital Corp. yesterday, taking the oceanfront development one step closer to its late-2006 opening date.

Canyon Ranch Living - Miami Beach is a six-acre residential community with a 150-room hotel anchoring two condominium towers. Priced between $1.2 million and $9 million, the one-, two- and three-bedroom condos are nearly 100 percent sold. Sales of the oceanfront property have surpassed $500 million, according to Miami-based WSG Development.

WSG, which couldn't be reached for comment, said in a statement that Canyon Ranch Living is the first community of its kind, dedicated to providing health and wellness facilities for residents. Although there are other Canyon Ranch properties in Arizona, Las Vegas and Florida, the Miami Beach facility is the eponymous spa company's first residential venture.

Condo hotels have quietly become one of the hottest areas of the real estate market.

The condo hotel concept provides benefits for the developer as well as for the buyer. Developers find it easier to obtain financing with condo hotels than with traditional hotel projects, plus the cash infusion of the sales helps their bottom line.

Buyers benefit by owning a property in a luxury resort that they can use for themselves, and take advantage of the high level amenities.

When they are not using the condo hotel, the unit is put in the managed pool and rented out for them. The buyers have what is considered "hassle free" ownership.

The condo hotel unit owners also benefit from having a professional onsite management company to handle to marketing, booking of their room and general expertise that they bring to the table. If a problem should arise with their condo hotel unit, the management company will take care of it instead of the owner having to worry about it. This makes the traditional landlord tenant issues a thing of the past.

The condo hotel buyer sees the benefit to owning a vacation property that also has the potential to produce income for them. The typical condo hotel produces higher levels of income than the traditional vacation home (and less headaches), making it all the more appealing to buyers.

Developers are finding it hard to keep up with the demand. Many of the condo hotels are selling out before ground breaking occurs. Condo hotels are different from traditional condos because the are sold "turn key". This means buyers do not have to worry about hiring a designer or contactor to come in to finish out the unit. Everything is included from linens, dishes, pillows etc�

The South Florida condo hotel market is leading the way with many of the names you know such as the Four Seasons, Starwood, Sonesta, Ritz Carlton and the Regent to name a few. Pricing for condo hotels can range anywhere from $400,000�s up to $8 million for larger luxurious oceanfront properties. Of course the pricing depends on location, views and types of finishes.

The Cheeca Lodge in Islamorada (Florida Keys) has enjoyed great success for its clientele. The Cheeca Lodge is currently converting rooms in the existing hotel but has plans to add more to the property. The property sits on 27 lush acres and has 203 guest rooms, including 48 suites that all have full kitchens. In addition, Cheeca Lodge offers an extensive range of services and amenities.

The W Hotel and Residences South Beach will soon be ready to launch. The W is one of the hottest names in the hotel industry. The development team for the W Hotel and Residences South Beach combines some big names in the field � Tri Star Capital, Related Urban Development (The Related Group of New York and The Related Group of Florida) and Starwood Properties. Expect a Wow lobby spectacular interior design and some ultra deluxe hotel rooms designed by Costas Kondylis of Kondylis & Partners. All units are sold completely finished and furnished � right down to the table settings; price range, $800,000 to $5 million.

Starwood and the Related Group of Florida have announced that they are joining forces to develop the St. Regis Resort & Residences in South Florida's most exclusive enclave, Bal Harbour. The St. Regis Resort & Residences will be built on the existing site of the Sheraton Bal Harbour, will be located on the pristine sands of the Atlantic Ocean directly across the street from the legendary Bal Harbour Shops. The St. Regis Resort and Residences is one of the most highly anticipated project to ever hit the South Florida market.

Canyon Ranch Living is the next step for Canyon Ranch's evolution and will be located on a 6 acre oceanfront parcel in Miami Beach. Canyon Ranch Living will offer 151 condo-hotel suites and 467 one, two and three bedroom and penthouse condominium residences, plus a 60,000 square-foot Spa & Fitness Center.

Turnberry Associates is bringing the Fontainebleau to a whole new level with the addition of the Fontainebleau II and Fontainebleau III Ocean Club.

Turnberry is leading the way with condo hotels anchored to existing very successful hotels such as the Residences at MGM Grand Las Vegas, and the Residences at Atlantis Paradise Island Nassau Bahamas.

The Residences at MGM Grand Las Vegas broke ground recently on its first 40-story tower, spearheading a wave of condominium-hotel growth that has begun to sweep the Las Vegas Valley. The Residences at Atlantis is a joint venture between Turnberry and Kerzner International that will bring 500 luxurious new rooms to the project.

With so many condo hotel projects on the market or in the planning phase, you need someone who can find the one that is right for you. The new condo hotel section at www.HansenHomesAventura.com can help keep you on top of the latest projects so you can be one of the first to buy. (PRWEB)

Officials at Sonesta Beach Resort on Key Biscayne announced plans Tuesday to convert the facility to a condo hotel with expectations of netting $650 million on sales of the units.
Fortune International is to market the development.
The existing property, built in 1969, will remain open until 2006 while the project is planned. The resort will close during a two-year construction.
Sonesta has sister properties on Sunny Isles Beach and in Coconut Grove.
The project will allow Boston-based Sonesta International Hotels Corp. an opportunity to double the size of rooms and upgrade to five-star quality, said Roger Sonnabend, the company's executive chairman.
"The rooms are 1960s sizes. They are 330 square feet, and we intend to build rooms of 500 to 600 square feet," he said. "Also, Miami could use an additional first-class hotel."
Neighboring Ritz-Carlton, Key Biscayne, Four Seasons Hotel and the region's only five-star hotel, Mandarin Oriental Miami, are obvious rivals, he said, though the Brickell and Brickell Key properties don't qualify as resorts.
"We're determined to at least equal if not better them," he said. "There is a shortage of truly luxurious hotels, and Key Biscayne lends itself to that quality. Other cities boast a number of five-star hotels, Miami doesn't."
That would be achieved, Mr. Sonnabend said, by offering better service.
"Training of personnel will be even more important. In a five-star property, more service is expected, more service on the beach."
Consumers weren't necessarily becoming more demanding, he said. Rather, others were looking at saving money.
"It goes both ways," Mr. Sonnabend said. "There's also tremendous demand for less expensive hotels with less service - a growth in the budget market."
The 10.5-acre site could accommodate a 930,000-square-foot facility, he said, with 200,000 square feet of public space and 700,000 square feet in guest rooms.
Mr. Sonnabend declined to reveal construction costs, though Fortune is to pay Sonesta $30 million in cash and discharge a mortgage of the same value as part of the transaction. Sonesta is to transfer the four-diamond AAA site to Fortune for $60 million and enter into a 50-50 partnership in the deal, set to close by mid-April.

From Boston to Los Angeles, developers are busy converting existing hotels to one of the hottest concepts in the lodging and real estate industries today � condominium hotels. In many cases, developers are working with branded hotel companies to build mixed-use luxury properties in city centers and resort markets. These complexes typically include a hotel, residential units, office space and retail stores.

So, why have condo hotels become so hot? For starters, developers can sell off hotel units prior to construction, enabling them to obtain construction debt and equity more easily than if they were building a traditional hotel.

Additionally, the inclusion of attractive condos within hotels can typically garner a higher sales price per square foot, allowing developers to generate cash flow to cycle back into the facility or new projects, according to Regent Street Advisors, an affiliate of The Plasencia Group, a hospitality consulting firm and financial advisor.

During the past few years, while the hotel industry was in the midst of a cyclical downturn, condo hotels have been an attractive way for developers to get deals done. In fact, many luxury hotels would not have been built without a residential component, says Dan Peek, managing director at Regent Street.

Lenders are more willing to finance condo hotels with only 20% equity because they are banking on projected condo sales prior to construction. Traditional loans require about 30% to 40% equity, says Peek. �Assuming sales happen as projected, the loan is guaranteed by condo purchases.�

Additionally, partnering with luxury and boutique brands can help turn up the heat even more on this already hot segment. So, it's no surprise that developers are turning to upscale brands like Four Seasons as well as Marriott's Ritz-Carlton, and Starwood's St. Regis and W hotels. Even some other luxury brands, which haven't traditionally offered a mixed-use residential component, are entering the playing field, including Hyatt's Grand Hyatt, Mandarin Oriental, and Hilton's Conrad.

�Let's not ignore what drives corporate development � profit,� says Jim Alderman, senior vice president of development at Starwood Hotel & Resorts Worldwide.

World-class example

In Manhattan, The Related Cos. and Apollo Real Estate Advisors developed the new Time Warner Center, which opened to great fanfare in 2004. The center includes The Mandarin Oriental luxury hotel, as well as The Residences at the Mandarin Oriental � luxury condos ranging from 540 sq. ft. to 8,400 sq. ft.

The complex also encompasses Time Warner World Headquarters, The Shops at Columbus Circle, One Central Park condominiums, 211,000 sq. ft. of Class-A office space, Jazz at Lincoln Center, and 504 parking spaces.

�There's no question about it: The Mandarin Oriental name is a great selling tool. There's a certain �buzz� about becoming a permanent guest here,� says Susan de Franca, president of residential sales at Related Cos.

Related and Apollo own 50% of the 251-unit luxury hotel, while Mandarin Oriental owns the other 50%. The hotel's 65 residential apartments, located on floors 64-80, have sold at prices ranging from $2.5 million to $30 million. Unlike some other condo hotel projects, where the condos are rented out as hotel suites when not in use, the residences at Mandarin Oriental are used only by owners and their guests, says de Franca. �This was a decision we made with Mandarin � to ensure exclusivity for owners.�

Mandarin Oriental owners were willing to pay higher prices to buy luxury apartments at the upscale hotel complex, where they have access to all the hotel services and amenities. �Certainly the price per square foot is higher than the building next to us, but our residents have access to our pool and fitness center, plus they get priority treatment at our restaurant and spa,� says Kristin Ruble, director of sales and marketing at The Mandarin Oriental.

Flurry of new projects

With the success of the Mandarin Oriental in New York and the high demand for serviced hotel apartments in urban markets nationwide, the hotel company has teamed up with CWB Boylston to open a similar property in Boston in September 2007.

CWB Boylston is building a 150-room Mandarin Oriental hotel, 50 ultra-luxury residences, 35 rental apartments, retail shops and restaurants in the heart of Boston's Back Bay. Almost all of the residences have been sold � sans advertising or marketing � for $2 million to almost $10 million, says CWB Partner Robin Brown.

Developer Espirito Santo Group also is realizing success with the branded mixed-use model. It partnered with Hilton's luxury Conrad brand to open the first newly built Conrad hotel in the U.S. last year in Miami. The Conrad Miami is part of the Espirito Santo Plaza and includes 203 rooms, 116 residences and 11 penthouse suites. Since the complex opened, the Conrad name has helped drive condo sales, as well as generate business from office tenants in the complex. Many tenants have rented meeting space in the hotel, and some of the executives have even bought condos at the Conrad.

�This is truly a project where everyone benefits. The synergy works,� says Bill Ross, president of Estoril Inc., which is working with Espirito Santo to sell condos and lease office space. Some 93% of the complex's 300,000 sq. ft. of office space is leased out, making Espirito Santo Plaza one of the fastest lease-ups in Miami history, says Ross.

» Continue reading "Why Condo Hotels Are a Hot Concept"

With lenders today having virtually no appetite for large-scale resorts or convention hotels, developers in search of financing for high-end product are faced with two alternatives � trim the size of their projects significantly, or add condominiums to their plans.

Why are condos so attractive to hotel lenders? For starters, proceeds from the sale of the units can be used to pay off part of the construction loan. And because condo units supply a revenue stream before the property even opens, lenders are willing to provide a 75% loan-to-value for condo-hotels compared with a 60% loan-to-value for a traditional hotel project, explains Frank Nardozza, chairman of REH Capital Partners, a Fort Lauderdale, Fla.-based hotel investment company.

�There's hardly any other way to get a major new-build project financed today,� Nardozza emphasizes.

Condo-hotels also produce higher returns for investors. Leveraged returns for a condo-hotel can exceed 30%, says Nardozza, while leveraged returns for a standard hotel range between 15% and 25%. Still, the complications involved in developing condos � including the need to set up pre-sale offices and form neighborhood associations to represent the individual owners � discourage some companies from going that route.

Top 5 Hotel Markets � Number of Rooms* Existing Supply Recently Opened** Under Construction
1. Orlando 115,075 2,209 5,009
2. Chicago 99,553 1,699 2,14
3. Los Angeles 97,293 706 749
4. Atlanta 90,312 792 2,475
5. Washington, D.C. 87,685 1,172 3,175
*As of July 2003
**Recently opened: Hotels that opened in past 12 months.
Source: Smith Travel Research/PPR/FW Dodge

Revenue from condo sales is used to finance the property, so condos become part of the project's equity, explains Ted Darnall, president of the real estate group at White Plains, N.Y.-based Starwood Hotels and Resorts Worldwide Inc. (NYSE: HOT). �Even though the pure, traditional hotel economics aren't necessarily supporting the level of growth that we've seen in the past in our industry, there are new economics created by these [condominium] projects,� emphasizes Darnall. �It's a means of finding equity that you couldn't find in other environments. It's a very good, successful model.�

As a result, Starwood has revamped its growth strategy by including condos in the mix. The company, an owner and franchiser of luxury hotels, previously specialized in destination resorts such as the $180 million, 735-room Westin Kierland Resort & Spa in Phoenix, which opened in November 2002. However, in late July Starwood unveiled plans for two W hotels � the company's trendy, boutique-style brand � that were designed to appeal to today's skeptical lenders.

Although the W Dallas Victory Hotel and Residences and the W Fort Lauderdale Hotel and Residences will feature less than half of the hotel rooms of the Kierland resort, they will be the first W properties to offer condo units. The hotels are scheduled to open in late 2005 and December 2006 respectively. The Fort Lauderdale property, which will be owned by Capris Resorts LLC, will contain 346 hotel rooms and 171 condo units, while the Dallas property, featuring 251 hotel rooms and 94 condos, will be owned by Gatehouse Capital Corp., Hillwood Development Co. and Southwest Sports Realty. Starwood will manage the properties.

The Economy's Influence

The condo-hotel trend picked up steam about three years ago when New York-based Millennium Partners developed several Ritz-Carlton and Four Seasons projects in markets such as Boston, San Francisco and New York.

Starwood's new strategy of including an ownership-unit ingredient in its projects is part of the plan for the Aladdin Resort in Las Vegas. In August, Starwood partnered with investors from Orlando-based Planet Hollywood and offered $635 million for the casino, which went bankrupt in September 2001. The team plans to convert 600 units into timeshares. In early September, the offer was under review in U.S. Bankruptcy Court.

There's good reason for hotel lenders to be skittish. The industry has yet to post consistent revenue gains since the Sept. 11, 2001, terrorist attacks. The total revenue per available room (RevPAR) nationwide dropped from $41,335 in 2000 to $35,753 in 2002, a 13% decline, according to the Hotel Research Group, a division of San Francisco-based PKF Consulting.

The three-year slump in hotel revenues also has taken its toll on overall development activity. As of July, the total number of hotels in the construction pipeline dropped 27.4% compared with July 2002, according to Henderson, Tenn.-based Smith Travel Research.

The number of upper upscale hotels under construction fell to 44 in July of this year compared with 70 in July 2002, according to Smith Travel Research. The Smith Travel upper upscale category is a wide grouping of chains ranging from Sheraton to Four Seasons, which the hotel companies themselves more commonly label as upscale and luxury hotels, respectively.

Although construction is on the wane in most markets, the exception to the rule is Orlando. As of July, there were 5,009 hotel rooms under construction in metropolitan Orlando, up from 2,838 rooms in July 2002, according to Smith Travel Research (See sidebar on page 42).

�Financing has been very hard to come by over the last couple years for most companies,� says Scott Johnson, vice president of development at Omni Hotels, which holds an ownership interest in most of its hotels. The Irving, Texas-based company has three projects under construction, including the 511-room, $124 million Omni San Diego scheduled to open in spring 2004.

But Omni Hotels has yet to announce a new project this year. The company, which also purchases properties for conversion to the Omni brand, has not been able to find a property to buy this year because sellers are expecting higher prices than their properties are worth in the current operating environment, says Johnson.

In another signal that these aren't the best times for developing large-scale luxury hotels, Ritz-Carlton has cut back its development plans in the U.S. after opening properties at a torrid pace in the past few years. The luxury hotel company, a division of Bethesda, Md.-based Marriott International Inc., has opened five hotels in the U.S. in the past 12 months, but now only has one project under construction and one other project in the pre-planning stages.

Although there are several U.S. markets the company considers candidates for Ritz-Carlton properties, including San Diego, Seattle, Dallas and Beverly Hills, Calif., the company wants to focus on managing the properties it has recently opened before embarking on more U.S. projects.

�We have defined our goals for the next five years, and most of those plans involve new hotels in Europe, the Middle East and Asia, rather than North America,� says Simon Cooper, president of Ritz-Carlton.

Thinking Small

With lenders wary of committing to large-scale resorts, some hotel companies are concentrating on expanding their portfolios by developing smaller hotels. They're also venturing into unglamorous secondary markets where there is more room for new supply. Starwood is developing a 150-room to 250-room prototype for its Westin and Sheraton brands geared toward secondary and tertiary markets. Hilton, meanwhile, is gearing up for an expansion of its Conrad brand, which is a boutique-style luxury hotel.

Starwood estimates that there are 20 Sheraton hotels and 15 Westin hotels in various stages of development modeled after the company's new prototype. The scaled-back hotels, which offer many of the same amenities as the larger Sheraton and Westin properties, are part of a strategy to grow market share against its two main rivals, Marriott and Hilton.

�We think there's a solid opportunity for growth there,� says Darnall. �We're happy with the construction pipeline for the Sheraton and Westin prototypes.� The company plans to own about 10% of the prototype properties and franchise the rest.

» Continue reading "Condos Help Seal Hotel Financing Deals"

W South Beach Hotel and Residences

The Related Group and W Hotels are getting set to start taking reservations for their latest project on South Beach. The W Hotel and Residences is one of the hottest names in the hotel industry. This is your opportunity to get in at first level pricing. W Hotel and Residences South Beach will be located at 2201 Collins Avenue on the ocean. Building features include:

� 19 Floors
� 511 Units
� Studios of 600 square feet
� 1 bedrooms from 800 to 1100 square feet
� 2 bedrooms of 1200 square feet
� 5 bungalows of 1350 square feet
� Pricing from $800,000 to $8,000,000
� Fully furnished units with plasma TV
� 9� Ceilings
� 2 restaurants including Mr. Chow
� 10,000 Square foot Bliss Spa

These units are set to start taking reservations in August with a reservation fee of 10%. Checks should be made payable to the Chicago Title Insurance Company. Second 10% should be due in December. For information on the W Hotel and Residence South Beach pricing and availability please call Paul Hansen 786-586-4778.

Las Vegas Review-Journal (KRT) via News Edge Corporation

Three weeks after finding himself without a job, former Mandalay Resort Group President Glenn Schaeffer has landed back on the Strip following Thursday's announcement that he will help bring the name of a Miami Beach resort icon to the north end of the boulevard.

Schaeffer, 51, was named president and chief executive officer of Fontainebleau Resorts, a privately held company founded by Jeff Soffer, a principal with high-rise condominium developer Turnberry Associates. The company purchased the famed Fontainebleau in Miami Beach, south Florida's largest hotel. While based in Las Vegas, Schaeffer will oversee a $350 million remodeling and expansion of the 51-year-old property.

At the same time, Schaeffer will spearhead development of a 4,000-room Fontainebleau Las Vegas hotel-casino, a planned $1.5 million development that will be built on the Strip just north of the Riviera on 25 acres that once held the El Rancho and Algiers casinos.

Rumors had been circulating among industry insiders that Schaeffer would be hired by Turnberry to oversee the Strip project.

The land fronts the existing Turnberry Place high-rise condominium project that will house approximately 800 residential units once construction is completed on its fourth tower.

Schaeffer, whose two-decade tenure with Mandalay ended last month when MGM Mirage completed its $7.9 billion buyout of the company, said preliminary plans call for the Fontainebleau Las Vegas to open by 2008.

"If we're going to be open in 2008, then we better be coming up out of the ground by the middle part of next year, so we're going to be developing and obtaining financing for the project while we're doing the renovation of the Fontainebleau in Miami," Schaeffer said. "I look at this as creating two flagships, one in Miami and one in Las Vegas."

Fontainebleau Resorts is privately held, and Schaeffer, who collected more than $13 million in stock options when he left Mandalay, according to securities filings, said he is an investor in the company.

He speculated, however, that Fontainebleau would have to seek Wall Street financing for the Las Vegas project.

"Obviously, I have some familiarity in that arena," said Schaeffer, who served as Mandalay's chief financial officer throughout the company's run, including when it was known as Circus Circus Enterprises in the late 1980s and early 1990s.

Turnberry purchased the El Rancho site in 2000 and demolished the shuttered casino. The company had looked at building a London-themed casino on the site until a downturn in the economy brought about by the Sept. 11, 2001, terrorist attacks scuttled development plans.

Earlier this year, Turnberry purchased the site of the former Algiers casino from a rival high-rise condo developer, giving the company a contiguous 25 acres on the Strip to develop as a resort destination.

"The value of land on the Strip just kept on climbing, and the time is right for a project like this," said Soffer, who is based in Miami and spearheaded the purchase of the Fontainebleau in January. "With what is happening in Las Vegas, you look a that site and we can do a tremendous project."

While planning is still preliminary, Schaeffer said he expects the Fontainebleau Las Vegas to have designs similar to the Miami Beach resort that was once one of America's most famous hotels. From its circular ceilings and staircases, to its crystal chandeliers and signature lobby, the Fontainebleau was the backdrop for numerous Miami-based movies, including James Bond's "Goldfinger" and "Scarface," starring Al Pacino.

The hotel has since fallen in stature, replaced by smaller, upscale resorts in nearby South Beach.

"Fontainebleau Resorts will be identified by crisp aesthetics and an over-cool factor," Schaeffer said. "Fontainebleau is a tremendous brand that we will restore in Miami and translate to Las Vegas."

The Miami renovation is expected to be completed in 2007 and will increase the size of the Fontainebleau to 1,750 rooms.

Soffer said he and Schaeffer met in early January, soon after Turnberry purchased the Fontainebleau.

"I told him what we wanted to do in Las Vegas and Miami and he was really interested," Soffer said. "Glenn is well-respected on Wall Street and in the financial communities, so he will play a tremendous role in this company."

Schaeffer said about 30 former Mandalay Resort Group executives would join him at Fontainebleau.

"We'll be flush with Mandalay DNA," he said.

Miami Real Estate

The Atlantis, Paradise Island, The Bahamas

Kerzner International Limited and Turnberry Associates have joined forces for the next major phase of development for Atlantis, Paradise Island. The Atlantis Condo Hotel is part of a one billion dollar expansion project. The Atlantis Phase III project will include the following elements:

A 600 room luxury all suite hotel
A 500 unit condo hotel
A significant expansion to the Atlantis� water-based attractions
Development of 100,000 square feet of additional group meeting facilities

Atlantis phase III will also bring the addition of world renowned chefs and restaurants to Atlantis guests and the Bahamas. The Atlantis all suite hotel will add a new tourist segment to an already booming business.
Atlantis Paradise Island Phase III will commence development of a 600 room luxury all suite hotel during the second quarter of 2005. The proposed Atlantis all suite hotel will be situated west of the Royal Towers, adjacent to one of the best available beach sites in the Caribbean.
Kerner International will partner with Turnberry Associates, one of the premier real estate development and property management companies in the United States on the development of the 400 unit condo hotel.
Butch Kerzner continued, "The all-suite hotel will also complement other key elements of the Phase III expansion, including the expanded water attractions, the meeting and convention space and the Marina Village. Construction of these elements of Phase III remains on track for the end of 2006."
At the Marina Village, which is anticipated to open as early as August 2005, the renaissance of Cafe Martinique will be guided by acclaimed chef Jean-Georges Vongerichten. Carmine's, a popular New York restaurant that serves home-style antipasti, pastas, seafood and meat entrees designed for sharing, will represent a new family dining option.
Owners in the new Atlantis condo hotel will be able to use all of the existing amenities including Atlantis� world famous casino.

Atlantis condo hotel units range in size from 540 to 1805 square feet. Prices range from $800,000 to well over $2,500,000 (all pricing subject to change)
The demand for the units in the Atlantis Condo Hotel will be huge. If you have any interest in this project, please call to find out how to buy your unit before this project is released to the public. For more information please contact Paul Hansen at 786-586-4778. To put your name on the exclusive reservation list, click here. Paul Hansen is being flown by Turnberry Associates, to the project on May 5th to be shown first hand the site and location.

VIP RESERVATION LIST CLICK HERE

HansenHomesAventura.com

» Continue reading "The Atlantis Condo Hotel Paradise Island Bahamas"