Chicago has plunged into hotel condominiums – a concept that was alien to the city just a few years ago – in a big way. At least seven hotel condo developments with a total of about 1,700 units are planned or under construction in downtown Chicago.
According to a hotel condo feature in the April issue of New Homes Magazine, some of these projects, including Trump International Hotel & Tower, have been among the most successful in the city. But of the 14 projects announced during the last several years, half a dozen also have bowed out. Read more about the ins and outs of this new hybrid housing in “A room of one’s own.”
Chicago residents are smart enough to avoid falling for this repackaged timeshare scam known as a condotel. It almost sounded like a good idea to me until I learned that the “investor” does not come anywhere close to even covering expenses, never mind making money. This would certainly limit the appreciation factor, which is the key selling point.
I agree with you Pete. I think it’s a very shaky product and after the first few projects in Chicago (of which their developers will probably end up stuck with many of the condotel units), they will disappear here…
The target market for “condotel” units is pretty much the same as for “in town” condos that they can own outright, then use when they come to Chi. for a weekend event. So this was a flawed marketing concept from the get-go.
Do Pete and Sam know the first thing about condotels? No, they don’t; they’ve never invested in one. All they can do is knock them.
There are more uses for a unit than just an ‘investment’ (and it does make a great investment btw). It is a nice family condo to use for weekend outings in the city, a nice place for out-of-town family or in-laws to use while in the City, a seperate crash pad, a second home away from home, or a place for a grown child to use and live while attending college in the City. The owners of the hotel will rent the unit out when not in use, and, you can make a tidy profit. This really is a good multi-purpose investment. No, you won’t make 16% per annum like the S&P 500 but you also can’t spend a weekend in your IBM stock either. As long as you can recognize the investment for what it is, you will be more satisifed with your purchase. I suggest you considering purchasing soon because the units are selling quickly; prices cannot and will not stay this low forever.
REIC, are you trying to sell some condotel units or something? That is the biggest load of crap I’ve seen in a long time. You make NO money once you factor in all costs. For a weekend crash pad, regular by-the-night hotel rooms are far cheaper without the commitment.
Pete and Sam, Some are good buys, call me and I will explain in greater detail. **you two probably thumbed your nose at the internet also.
Like anything in life there is always risk.
I dont think a hotel will disappear but a stock might. THIS IS NOT A TIME SHARE, but it follows some of the rules. It depends on where you buy at, but most places will let you stay as much as you want. The fees and prices are half of timeshares and you fully own it not with 52+ other.. And at some locations you have a great chance of making $$$$. I can stay at my unit at the Raffaello (on the mag mile) 4 star and stay 3 nights pay one cleaning of 35 dollars and park my car over night (in and out priv)15$ per night vallaied. You two would spend $700 or more. I have a brand new 1 bedroom!!! My Shang ri la unit will be even better.
We all know there is good and bad in every sector. There are and will be some success in the hotel condo market. I like calling it that.
The Raffaello is just about sold out.
The Shang ri la is still an awesome deal
The Elysian is doing well as the Trump.
It really is a great product and offers a lot!!!! Dont let a few bad apples spoil the bunch. You must be very wise in wich one to buy. *** the average 4-5 star hotel in the chicagoland area is over 73% occupied. Some newer more trendy ones are more… Its part commercial and residential/and the hotel industry is doing well. No evictions!!! no real damage or they charge them, no collecting $$$ and BEST OF ALL, you can use them when you want!!!! Call or email me and I will Take care of you if you are interested in buying/investing. http://www.hotelcondosinchicago.com
Thanks
Dave
Dave,
Our readers do not appreciate being pestered by people who have to stoop to soliciting business in this fashion – and are highly unlikely to respond to your intrusive solicitation.
Pete,
If you say condo-hotel is a scam, give numbers from a specifc example of a condo-hotel that you know of, and specify the income as well as the losses.