Most people don’t really know what condo hotels are. And of those that do, many have been wondering whether the concept of the condotel will work here in Orlando.
Orlando’s condo hotels encompass both conversion and pre-construction and currently include (deep breath): Club Venetian, the Lexington, the Blue Rose, Villa del Lago, Pallazo del Lago, Imagine at The Westin, WorldQuest Resort, Floridays Resort, the Mona Lisa, Vista Club, the Point, San Marco Resort and Lake Buena Vista Resort and Spa.
That list will even surprise most Realtors. It’s clear then, that large number of developers are betting that that the concept is a sound one, and according to the Orlando Business Journal, at least one of the pioneers appears to be doing very well…
The Lake Buena Vista Resort and Spa has included a popular 2 year lease-back option which appears to be helping investors make up their minds. The first phase of the project includes two eight-story buildings with 174 units and by March 2008 the complex hopes to be operating almost 500 units, all of which are already sold. The total number of units planned is a staggering 1,875. The current occupancy is nearly 78% with an average nightly rate of $140, which is expected to rise sharply.
The developers opened their first 174 units in December of 2005 after purchasing the land (60 acres) twenty years ago. Now that’s what I call a patient investment.