Insiders Debate Condo Hotel Market

NEW YORK CITY-”Some of the things that scare me include the condo hotel concept,” said Robert Stern, managing director, Perry Real Estate Partners. “I don’t understand it from a buyer’s perspective.” He said it is rife with conflict and governance issues and says there could be a “catastrophe” ahead. “As an investor, I’m looking to protect my downside. I like to see a proliferance of new concepts.” On the upside, he said he “hopes the government would try to incentivize new development as opposed to keeping substandard development on the market.

The condo hotel trend, branding and the image of the timeshare market were discussed as part of a NYCREW panel discussion dealing with lodging as the first part of its Industry Spotlight Series.

Irene Hoek, vice president, real estate investment for Starwood Hotels & Resorts Worldwide Inc., called the industry a “quickly evolving one.” She said Starwood in not “entirely comfortable with the hotel/condo concept.” Nicholas Mecca, managing director, structure department, resort finance division for Textron Financial Corp., said the timeshare industry has “changed so much in the past 10 years.” He said one of the key issues has been the impact of the brands on the marketplace.