Tuesday, April 8, 2008

Condo Hotels Good Investments? NOT!

From the Wall Street Journal:

Rooms With a Bubble View

By MICHAEL CORKERY, SARA LIN and RUTH SIMON
April 5, 2008; Page B1

For many investors, the condo hotel may go down as the Pets.com of the real-estate bubble.

Many buyers purchased the hotel rooms from developers hoping to get paid every time the room was rented. But condo hotels, which account for as much as 10% of all hotel rooms under construction and a much greater percentage in resort markets such as Orlando, Fla., and Las Vegas, are coming back to haunt many of the people who bought the units, the developers that constructed the buildings, and the operators hired to run the hotels.

Continued

Called to TS attention by BloodhoundBlog

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