2021 Residential Developers Reach New Success With Hotels

0
26

[ad_1]

The saying “location, location, location” is still valid, but some traditional residential developers are taking the next step as market trends in the pandemic open up new opportunities for hotels. The cost of condominiums, villas, houses and commercial real estate varies depending on supply and demand. The pandemic is making hotel investment particularly attractive to some property developers.

Many see the hotel as a way to complement and enhance the residential commercial dimension of neighboring projects. Others, often in tropical holiday destinations, may find that demand far exceeds vacation property offer, even before Covid-19. Either way, hotels represent a new world of challenges that may be unfamiliar to real estate companies, such as average daily rates, employment rates, income per room availability, and staffing issues.

The decision to enter a new investment sector is not an easy one to make. While most real estate companies looking into a hotel choose to manage it by a third party, an inherent risk remains. Hotels are an ongoing business that stands at the pinnacle of real estate investment. They need the know-how of an industry veteran to make them work.

Hotel companies are often moving into the real estate sector, according to Alvaro Asebal, director of operations at Beach Enclave in Turks and Caicos. He references hotel brands such as The Ritz-Carlton, St. Regis and W Hotels, which serve residential components in or near certain hotels. However, Acebal notes that the opposite is rarely seen when real estate companies take their first steps in building a hotel.

April report from Wall Street Magazine pointed to a recovery for hotel investors after being hit hard in 2020 by the pandemic. In some cases, real estate companies are tempted to buy distressed hotels (mainly due to the Covid-19 pandemic) and convert them into affordable housing, according to a recent study. CNBC report

While many real estate investment projects were launched before the coronavirus even entered our daily vocabulary, the state of the industry is not entirely bleak. The growth may be market-specific, as some officials in cities like New York are even looking to wind down new hotel projects. New York Times, while other areas tend to grow.

Asebal notes that in many markets, real estate companies turning to the hotel business can make a lot of sense. This step of faith can lead to success in more than just a hotel property or a real estate company. It can energize and consume areas that once flourished through long-term recreation or permanent home ownership. With hotels as anchors, communities can thrive and thrive. Here are some of the new hotels created by residential property investors who are trying to do just that.

Kimpton Cottonwood Hotel, Omaha, Nebraska

Blackstone District

When Matt Dwyer, Director GreenSlate development, started investing in Blackstone District A few years ago, the mood in the city was quite high. This area, once a bit deserted, is on the outskirts of the city center, and a coordinated effort to connect the city center with many health centers on the other side made sense.

Today, the Blackstone neighborhood is replete with chic boutiques, yoga studios, cafes, restaurants, breweries and apartment buildings. In the center of the district stood the old Blackstone Hotel, which has since become an office building. For Dwyer and his colleagues, who previously only invested in residential real estate, it made sense to buy it and turn it into the outstanding hotel now known as Kimpton Cottonwood Hotel, part of the InterContinental Hotels Group (IHG)

More than a century of locals fondly remember attending social events and important events at the hotel. At his rooftop Schimmel Ballroom, now popular for weddings, with an outdoor deck and chef’s herb garden, Richard Nixon announced his candidacy for the presidency.

Restored to its former glamor but with a host of modern touches (including Kimpton’s favorite complimentary drinks such as morning coffee, evening wine receptions, and in-room yoga mats), Cottonwood is buzzing with activity. Even its Committee Chophouse restaurant and Cottonwood Room bar draws locals into historical photographs of the area and the hotel’s past.

“We decided to make a special twist in hospitality because this building and its history provided a unique opportunity to restore an iconic hotel in the city where we were all born and in the area that we all worked so hard to create,” Dwyer said.

Club at Beach Enclave Long Bay, Turks and Caicos

Providenciales

The Beach Enclave Luxury Multi-Bedroom Villas are located on the oceanfront in three different areas of Providenciales, the main Turks and Caicos Islands. Almost 70% of visitors arrive on the island by private jet to spend their holidays (or even long stay to work remotely). Since villas, most of which have five bedrooms, should be purchased as a kit (rather than filming alone), this is a place where families or groups of friends travel together to escape the hustle and bustle of big hotels.

Each villa features a pool surrounded by sun loungers, an outdoor patio with a dining area and grill, spacious living areas and a fully equipped kitchen with butler service. The chef can also prepare meals upon request, and breakfast is free for all guests.

The collection of residences is so popular that regular guests have started asking for more amenities so they can stay on the property, leading to the idea of ​​building a hotel.

While Beach Enclave guests have access to tennis and basketball courts, 24-hour fitness centers and in-room spa services, many wanted more, including the ability to socialize outside of the villa.

Traditionally, the Turks and Caicos market has relied more on real estate and condominium-style hotels than on typical resorts. However, this is changing with the emergence of new hotels such as The Ritz-Carlton, Turks and Caicos opening this summer, and a new hotel project, The Club at Beach Enclave Long Bay, with 24 rooms and eight four-bedroom residences and the widest beach on the islands next year.

The latter will be the first hotel project for Vasco Borges, CEO and founder of Beach Enclave. When Borges left his financial career to pursue a private resort villa investment model, he developed a renewed interest in hospitality after seeing a growing demand from an existing clientele interested in family vacations with their families.

The demand for the residences instantly became popular, selling out within a few months, and the hotel seemed like a natural extension. Both models provide a great experience, Borges said, and his company is in talks with developers in other Caribbean countries to introduce the model to other locations along the coast, especially those with easy access to “major North American markets.”

The Ray Hotel, Delray Beach, Florida

Delray Beach

When Craig Menin, CEO Menina real estate company with residential and commercial properties opened the Delray Beach Market (the largest food hall in Florida) this year, his plan was simple. He wanted to invest in the further development of the Delray Beach community and have a hand in promoting its elite direction, filling a void in which concepts did not exist (such as a restaurant hall).

“As a person who lives in Delray Beach and a person who travels a lot, I noticed that there was a hole in the market,” says Menin.

Ray Hotel will be part of that plan when it opens in September as part of the Curio Collection by Hilton. Menin wants Delray Beach to be “less dense” and “small-scale”. Moving beyond residential and commercial projects to the hospitality sector, the company can manage the aesthetic and overall design direction of the area. Since Menin has a wealth of experience in real estate development rather than hotel management, he will rely on Clique Hospitality for property management.

“We want to preserve the history, beauty and charm of Delray Beach, but we also want to provide opportunities to improve our urban beach town,” adds Menin.

This is what an anchor hotel project can do for many communities, and these days, many hotel real estate companies are taking the reins to make this happen.

[ad_2]

Source link