While the lines between hotel guests and owners have blurred in recent years, condo-hotel and resort projects that incorporate privately owned accommodations continue to see success. Many factors contribute to travelers choosing to purchase an ownership stake, including a desire for an upgraded lifestyle, more control over costs and maintenance, and greater privacy and customization of their vacation experience. From the hotel's perspective, condo-hotel units allow for longer average lengths of stay, higher room rates, and more predictable booking patterns compared to traditional hotel rooms. Incorporating condo and villa units can create a seamless, tailored experience for guests while also improving the hotel's financial performance through advanced bookings and reduced commissions.

1. GLOBAL INSIGHTS SERIES - HOTEL NEWSNOW September15, 2016
WHEN DOES A HOTEL BECOME A HOME?
It seemsthe linesof demarcation mayhave somewhatdisappearedbetweenhotel guestsvs.owners
inrecentyears. Both urban andresort projects now have a highpercentage of privatelyowned
accommodations,thoughinthe majorityof cases, hotel guestsare unaware of the businessmodel.
WithUS real estate continuingtobe a solidinvestmentdue tolow interestratesanda growingappetite
for travel frommostmarketsegments,avolatile stockmarketandgeo-political landscapehasalsohad
some influence onitssuccess. Assumingthisremains apositive movementnationallyaswell asinthe
Caribbean andMexico,we can surmise the condohotel/resortmodel willremainsustainable.
Afteryearsof lostfavoritism,condohotels projectsare makingacomeback. Is thisbecause of favorable
constructionfundingoristhisscenariobasedona marketdemandissue? The travelingpublicis now
more discerningand demandingthanever, yetnotasloyal as baby boomers. Propertiesneedtowork
evenharderto attract newcustomersina crowdedmarketplace andthen,of course, retainthembefore
theymove onto the next newtrendyplace downthe way.
Architectsandinteriordesigners,needingtobe onthe cutting edge of what’shappening,have known
for some time thata lesscommercial concept bycreatinga residential environmentensureshappy
guests. The laundrylistof whatare standardamenitiesandservicesisoff the charts. Whatwere once
describedasownerprivilegesin condohotels/resorts andvillasare now merely partof the necessary
equation. Currentprojectsonthe boardsno longerhave lobbiesbutratherlivingrooms,fullservice
kitchensandevenwasher/dryers. Businesscentershave disappeared,ashave desksinguestrooms.
The check-inandout proceduresare handledona discreet,VIPstylebasisinthe comfortof one’s
accommodationorat a guestlounge off limitstotraditionalhotel guests.
Many factors contribute tothe decisiontomake a leapfroma typical guestto an owner;upgradingto
a lifestylehigherthanyourdaily norm, upkeepand maintenance costs are controllable, more privacy
and lesssafetyconcerns,findingavacationalternativeideallysuitedtothe flexiblesize andneedsof
familyandfriends,achance to personalizeyourholidaybasedonculinary desires(nodresscodesor
strict restauranthours),custommenusfordietaryrequirements, children, grandparents,etc. Eventhe
familypethastheirownbed, preparedmeals anddogwalking,if youare leave the premisesforafew
hours.
Both internal andexteriorlivingspace iscrucial inthe selectionprocessas average staysforthe US
travelers canbe basedon weekly orholiday minimums,while EuropeansandSouthAmericanseasily
stay double thattime period. Outdoorrainshowers, gasbarbecues,fire pitsandcomplimentarybikes
are becomingcommonplace. Fitnessrooms, massagetables andyogamats allow gueststoschedule
such wellnesssessions in-roomand attheirleisure. Stockedbars/winecellars andgroceryshoppingare
handledpriortoarrival.Staffingcanbe customizedwithbutlers, private chefs,nannies,chauffeursor
trainers. Personal preferenceswithregard todaily newspapers,magazines,moviesandmusic bring
the comforts of home to yourdisposal.

2. Seasonalityfactorsplayarole as well. Winterresortsprovidestorage for equipmentandski wearas
do golf clubsandcarts at warm weatherlocales. Beachside holidayswithswimtoys/fins,straw hats
or scuba equipmentresidein ownerclosets. Withthe ongoinghasslesof flyingcommercial, the ability
to travel lightisappreciatedandcosteffective.
More than ever,pressure isplacedon conciergestoaccommodate the expansive listof anticipated
clientrequests well inadvance orwhile inresidence. The benefits,however, of incorporatingcondos
and villasintoconstructionplans are two-fold. The guestexperience is muchmore seamless,turn-key
and withlessopportunityfordisappointment asguestneedsare anticipatedlongbefore theypacktheir
bags andhead to the airport.All touchpointsare well conceived anddelivered inatimelymanneron
a gracioussuggestionbasis, ratherthanan up-sell approach.
From the hotel’sperspective,the bookingwindow is wellinadvance of a typical hotel stay whichhelps
forecastingandstaffing.Depositpoliciesare normallyinsubstantial incrementswhichhelp cash-flow
and cancellationpenalties more stringent.The average lengthof stay islongerwith ahigheraverage
dailyrate that readsmore like a suite.The returnratio shoulddevelopinto atraditional pattern. Their
braggingrightscoupledwithan abilitytobecome yourbestambassadorswill undoubtedly attractnew
customers. Inmany instances, lodgingreservationsare made directlyatthe propertylevel thruvoice or
the proprietarywebsite,therefore, lesscommissionsare paid tothirdparties,OTA’sorapproved
supplierswith betterrevenue flow tothe bottom-line.
Professionalmanagementcompaniesandvillarental programshandle the transactions effectively.
Thoughthe lodginginventorymaybe optional and fluidwithusage limitationsforowners,especially
duringpeakdemandperiods,thiscanbe an ideal solutionforavacationhome minusthe head aches
and expenses. However,hotelmanagementneedsto be educated andembrace the nuancesinhow
these guests,whomayeventually graduate toowners,wishtobe acknowledgedand treated.
Most of all,solidrelationshipsare naturally establishedwith keymanagement,reservationsand front
line staff whounderstand the importance of beinginthe hospitality industry. Theymaybe justas
excitedtoserve…nomatterif the partyisan owneror an owner-guestinthe making.
LindaBruno, ISHC,isManaging Directorof ConsulenteInternational,amarketingandbrandingfirm
basedinGreenwich,CT.andChicago. Herthirtyplusyear’spractice is devotedtoindependent,luxury
projectsinthe developmentorrepositioningstagesaswell asmarketingaudits. Witha specialtyin
boutique andlifestyle hotels,resorts,inns,mixed-use developments,destinationspas andvilla
communities inthe USand Caribbean,she alsoprovidesa targetedfocus inthe UK, Europe, Canada.