Condo hotels form a specific niche business opportunity in the US. Although, it can be vastly profitable for an experienced owner, there are some important aspects you need to be conversant with, before you think of opening one. It is important that you be aware of all the aspects, because otherwise, you will not be able to succeed in it.
A condo hotel is a high-rise towering structure that has several condominium apartments built in it on different floors. The hotel also needs to have all the other requisite catering, dining, cooking, parking, and hotel maintenance services. The initial investment to build such a hotel is huge and you will need to optimally market it as an attractive opportunity for funders.
You need to spend money in planning the whole architecture, detailed design, and actual construction. Obviously, you need to build such a hotel in a location that has attraction for rich businessmen, other customers, and their families. Moreover, the money required for the land on which such an enterprise will be erected will lighten your pocket substantially.
A condo hotel apartment serves as a sort of vacation resort for rich businessmen and their families. They pay a substantial sum of money to stay for a month or two in one of the condominium apartments in the hotel every year. They reserve an apartment two months in advance for their stay.
In the offseason, the hotel owner can rent the condominium apartments to normal customers who have the moolah to stay in them with their families or with a group of friends. However, the normal customers cannot make any modifications in the apartment at all.
In view of such conditions, you need to have good contacts with all rich businessmen in the US and abroad. This is to ensure that you will not need to keep your condominium apartments in your hotel vacant at all during the vacation season. You need to keep in their touch and provide them the best hotel service. They will expect it too for the sort of money they will be willing to pay to you.
You need to employ the best staff to operate and maintain the best quality of services to your rich clientele. That will require you to pay them the best of salaries in the industry. You need to appoint a full time manager for the condo hotel whose job it will be to take care of all hotel services, schedules, and reservations.
It requires special experience in the niche field to have the courage to open such a high-risk venture. It is not for normal hotel owners who run their business on maximizing the turnover.
In a condo hotel business, you need to strive to get the richest businessmen to stay with their families in your condo hotel for their one month's vacation every year. Your hotel's profitability is dependent mainly on these lucrative opportunities. The other customers who stay in the hotel's apartments during the offseason will not pay as much.