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Condo Hotel Lawyer: Standards Must Be “Built In”

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20 September 2006

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Maintaining the quality of the condo hotel is a key component to the success of a condo hotel project. The condo hotel must deliver the expected consistent quality levels of service, room finishings and other physical product for its brand or market segment. Face it: the fastest way to turn a four-star property into a three-star property is to have inconsistent standards.

The condo hotel regime must provide the legally enforceable structure to maintain consistency and quality, and the mechanics to enable the unit owners, through their HOAs, to meet their obligations under the hotel management agreement, and to enforce their rights.

Anyone in the hotel business knows that there may be times when the owners will be required to dig into their wallets to cover hotel operating shortfalls and to cover capital expenditures, FF&E upgrades and replacements. But, a traditional hotel has only one owner and one operator, while the typical condo hotel may have several hundred “owners” — and you have to coordinate and enforce each of those obligations!

Unit owners, too, want consistency and quality — and they want viable recourse against those owners who don’t meet their obligations. Building standardization and accountability into all the project’s documents benefits all stakeholders in the condo hotel.

Other condo hotel resources

You can access the full library of Condo Hotel materials on Hotel Law Blog by going to the home page, selecting the tab at the top that says “HOTEL LAW TOPICS”, and then clicking on “Condo Hotels” in the drop down menu . . . or by clicking here.

Below is a partial listing of articles by JMBM’s Condo Hotel Lawyers:

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