Condo Hotel Financing in Miami’s bustling hotel market opens up a world of opportunities. Miami-Dade County not only leads the nation in hotel occupancy rates, but the allure of investing in a condotel—a unique blend of apartments and hotels—has also never been more enticing.
Miami-Dade’s Stellar Hotel Market Performance
Recent CoStar data reveals that the Miami-Dade County hotel industry is flourishing, boasting an occupancy rate of 88.2% for the week ending February 24. This nearly 3% year-over-year growth positions Miami-Dade County as the premier hotel market in the U.S., outperforming 25 other major markets. This significant achievement highlights Miami’s magnetic appeal to both tourists and investors, especially during the bustling tourist season, which features events like the Miami International Boat Show and the South Beach Wine and Food Festival.
Miami-Dade Hotel Market Excels
The Miami-Dade County hotel business had an 88.2% occupancy rate for the week ending February 24, according to CoStar. Miami-Dade County is the top U.S. hotel market, growing about 3% year-over-year, beating 25 other major areas. The Miami International Boat Show and South Beach Wine and Food Festival draw travelers and investors to Miami, especially during the busy tourist season.
These Condo Hotels are mainly located in tourist areas such as Miami Beach, Downtown, Brickell and Sunny Isles. Some of them are very high end such as the Four Seasons, Ritz Carlton, to more affordable but still luxurious units in Viceroy, The Gale, Yotel Pad and The Elser.
The Condotel Investment Lure Based on Numbers
Even though there was a small drop in the average daily room rate, the revenue per available room (RevPAR) has seen a significant jump to $274.44 — up by 3.7% from last year — which speaks volumes of the financial benefits of hotel investments in Miami. In particular, condotels stand out as a choice worth considering because they bring together high-end living spaces with equally substantial sources of income.
Tailored Condo Hotel Financing Solutions by Miami Lending Advisors
In response to the wave of investors eyeing Miami’s thriving hotel industry, we present distinctive condo hotel financing solutions. We promise investment properties and second homes up to 70% LTV, loans as high as $10 million, and a potpourri of mortgage options that includes ARMs. We are devoted to helping you as you take your first steps towards this new investment in Miami’s pulsating hotel market.
Local Expertise for Your Investment Journey
As local mortgage brokers deeply familiar with Miami’s real estate landscape, Miami Loan Advisors not only ensures approval but also maximizes your investment potential. Partner with us to confidently navigate Miami’s dynamic hotel market, leveraging our local insights and specialized financing solutions. Together, we can unlock the door to profitable condotel investments.
Investing in a condo hotel in Miami is more than just an investment; it’s a strategic move to capitalize on a robust market. With Miami-Dade County leading in hotel occupancy and revenue, and Miami Loan Advisors providing expert local financing solutions, your pathway to successful condotel investment is clear. Join us to seize the unparalleled opportunities in the booming hotel market for unmatched investment prospects.
Source: therealdeal.com
How much down payment do I need to buy a Condo Hotel in Miami?
You will typically need between 30-35% downpayment for these types of properties. This will depend on the program that we use and the building that you are buying. Usually, older buildings can require a larger down payment.
Do I need to put the unit in the hotel program?
Some Hotels will require you to put the unit under their program, some will allow you to self manage or hire a third party to manage it.
How much do they charge?
The management fee is around 15-25 % of your gross income. After that you will need to deduct expenses like Home Owners Association, Insurance and Taxes. Your net income will be calculated after all those expenses.
Can I use my unit when it is not rented?
Different hotels have different programs , but in general terms, YES, you can use your unit when you visit Miami. If your unit is under the hotel program you will probably have to give them specific dates to block when you are planning to visit. Some programs limit the number of nights, some programs don’t.
If your unit is independently managed (out of the hotel program) then you will have more flexibility of use.
