This is a really interesting article. The Wall Street Journal of Dec. 9, 2009 reports on another ill-conceived and ill-fated hotel to condotel conversion project. This is a project called Hotel 71, located in Chicago. The firm that purchased the property announced that they are ditching the condotel conversion plans and will operate the property as a traditional hotel instead.
The article goes on to say: “The history and sale of Hotel 71 shines additional light on the busted business model of condo-hotels, which typically allows unit owners to rent rooms when they aren’t using them. At the peak of the real-estate boom, many small investors snapped up condo-hotel units. But the economic collapse, which has hit the hotel and condo markets the hardest of any commercial-property class, naturally hasn’t been kind to the hybrid property type. Canyon plans to complete the renovation Mr. Falor started but has no intention of pursuing his condo-hotel strategy. Rather, the property will be operated as a traditional hotel, according to people familiar with the deal.”
AS A REMINDER: The Ilikai is NOT a condotel. Instead the Ilikai is a mixed-use property that combines condominiums and traditional hotel under the same roof in the same complex. Mixed-use is a different model that the “condotel,” also called “condo hotel,” model. Anekona had ideas to convert our hotel into a condotel. We all know the resulting fiasco. Let’s all learn from this. I am saying this because apparently there are still some individuals who are nursing condotel conversion ideas – with personal agendas in mind. The Ilikai has been a mixed-use property combining private condominiums and a traditional hotel in one property since Chinn Ho built it this way. Leave it that way. Many of us have purchased our units precisely because of this mix-use nature, with the traditional hotel. We did not buy into some condotel or timeshare joint.
Dear Olga,
Are you sure Chin Ho built it as a mixed use property ? Old brochures I have seen advertise it as a condominium. Bill Moore corrected me on this also.
Yes, I am sure. The final product was mixed-use. We have the history, with documents.