The Seattle Times has an article looking at condo hotels, specifically, 1 (worst name ever), Owning a hotel room for pleasure, profit:
He’ll make a down payment of $240,000, and get a 30-year loan with a 6.88 percent interest rate for the rest, with a monthly mortgage payment of $2,366, not including property tax, insurance and homeowner fees. He estimates that to cover the mortgage payment, hotel management would need to fill his room 22 days or more a month at a daily rate above $300, and return at least 40 percent of the revenues to him.
Those numbers aren’t out of line with downtown’s average hotel-occupancy rate and prices being charged by some of the more expensive hotels.
There was an article in Forbes about this a year ago that I blogged about that showed their person losing $12k a year on their unit.
Here’s an info graphic showing how it works. Though if you’re forking over $600k you should likely consult a good real estate agent or lawyer and not rely on this:
Funny math and frothy markets aside, the 1 bathrooms look pretty nice though I’m a little unsure of the ladder:
Any Urbnlivn readers interested in 1? How does your math have you netting out?
Popularity: 8% [?]
12 responses so far ↓
1 CHESSNOID // Sep 5, 2007 at 7:36 pm
I like the modern look. Not too sure about the tub. It is out of my reach, but I love to look. Maybe there is a loft at the end of that ladder. lol. ;)
2 EconE // Sep 5, 2007 at 8:08 pm
Now that’s what I call a cool sink/vanity…the complete opposite of the goofy ones that I commented on in the other thread. Clean lines and excellent incorporation of the towel shelf.
Form…meet function.
3 Chris // Sep 6, 2007 at 7:34 am
“Buy a condo-hotel because you think you’ll enjoy it,” Alexander said. “If you follow what’s going on nationally, we’re not sure price appreciation will occur.”…and that’s the CEO of the national condotel trade group saying this!
4 jdp // Sep 6, 2007 at 9:37 am
For an example of this model take a look at the MGM in Las Vegas to see what happens on resale value. It is a great deal for the operator, in my opinion not that great for the buyer.
5 jo // Sep 6, 2007 at 11:24 am
What happens in a few years when the units need to be updated? $$$$
6 JasonC // Sep 6, 2007 at 1:15 pm
Bathroom: too Vegasy overall, but love the sink design.
7 jaap // Sep 6, 2007 at 4:30 pm
Look, I can’t believe I’m saying this (me, the ultimate fanboy of clean industrial tekk design) but honestly, if you took out the tub and installed a row of urinals, you would have a perfect generic mens’room. Just no personality in this room.
maybe I’m just going soft…
8 kh // Sep 6, 2007 at 10:56 pm
it does have good form and function incorporated. i like the rendering… clean, simple, warm and relaxing. i think it will be awhile before a design like this will need some updating.
but imo the condo hotel will only work in your favor if you have disposable $$ for the long run.
9 Kim // Sep 7, 2007 at 12:14 pm
I don’t think this sort of development (1)is right for Seattle just yet. New York, yes. LA, Definately. Seattle? HOw do they expect to sell many of these? I dig the bathroom , though.
10 jcricket // Sep 7, 2007 at 12:30 pm
So you don’t “make money” on the condo hotel, but you do defray the cost of owning a “second home” that you only use once or twice a year. Seems like a good way for the rich peeps to lower the “cost” of their vacation home.
11 me // Sep 7, 2007 at 1:23 pm
Stainless steel is the harvest gold of this decade.
12 uptown // Sep 11, 2007 at 9:49 am
Condo hotels - brings back fond memories of the original timeshare boom/bust.
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