As the Condo Hotel industry evolves, developers are finding various ways of protecting their own interests. One way of doing this is including a provision for a Right of First Refusal in the condominium documents. Typically, a Right of First Refusal states that a Condo Hotel Unit Owner (Unit Owner) has to allow the Hotel Owner the ability to match any outside offers for the sale of the unit. For example, if an owner at a particular Condo Hotel places there unit for sale on Condo Hotel Marketplace and a prospective buyer makes them an offer of $900,000, the owner must allow the Hotel Owner the ability to match the prospective buyers offer. If the Hotel Owner decides to match the offer, the owner of the unit must sell their unit back to the Hotel Owner for $900,000 due to the Right Of First Refusal provision agreed upon in the condominium documents. While the Right of First Refusal might seem like a burden to the seller, in the end, the seller still gets their asking price of $900,000, regardless of who buys the unit.

As the Condo Hotel industry evolves, developers are finding various ways of protecting their own interests. One way of doing this is including a provision for a “Right of First Refusal” in the condominium documents. Typically, a Right of First Refusal states that a Condo Hotel Unit Owner (Unit Owner) has to allow the Hotel Owner the ability to match any outside offers for the sale of the unit. For example, if an owner at a particular Condo Hotel places there unit for sale on Condo Hotel Marketplace and a prospective buyer makes them an offer of $900,000, the owner must allow the Hotel Owner the ability to match the prospective buyers offer. If the Hotel Owner decides to match the offer, the owner of the unit must sell their unit back to the Hotel Owner for $900,000 due to the Right Of First Refusal provision agreed upon in the condominium documents. While the Right of First Refusal might seem like a burden to the seller, in the end, the seller still gets their asking price of $900,000, regardless of who buys the unit.

When is the last time you drove down Collins Avenue in the heart of Miami Beach? If it has been awhile, then you might be shocked! Views of the beach running along the coastline are long gone, and have been replaced by high rise hotels and condominiums. The same holds true for many of the hot vacationing spots throughout the world. So much that the $350 million Trump International Hotel and Tower at Waikiki Beach Walk being developed isn’t even on the water, it is being built offshore because land could not be secured directly on the coast. The reason for this is simple, there is a shortage of land, especially along coastlines, and investors have had to turn to alternative development methods in order to compensate for active and luxurious lifestyle demands.

With top of the line health care, an emerging economy, a stable political system, vast options for entertainment, and a real estate market that has historically appreciated very well, many people are opting to reside somewhere in the U.S. If only 10% of the 135 million World Boomers purchase a residence in the U.S., then the population of the United States could increase by 13 million over the next 15 years.

The National Association of Realtors and the National Association of Home Builders both agree that “boomers” want to purchase luxurious second homes, with features and amenities similar to their main residence. That is why the demand for Condo Hotels has far exceeded its’ supply.

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