If you have an underperforming Hotel or mixed-use Residential project, or just wish to achieve the highest value from your Asset, FGS Realty Advisors provides a service to evaluate and execute a plan to convert all or part of the units to a Shared Ownership product, to include; Timeshare, Vacation Ownership, Vacation Club, etc…

FGS has brought the concept to several property owners with great success. One recent example was The Hotel Blake Chicago – please click here to see more.  Issues of consideration in determining whether your project is a candidate, include:

  • Legal – any zoning or land use limitations?
    • Is the project in a zone for condominiums and second homes
  • Registration issues?
    • Likely to be required in both situs state and marketing states
    • Real estate licensing
    • Internet sales issues
  • HOA – prohibited by the CC&R’s?
    • Is shared ownership and/or Timeshare allowed?  Is your project Mixed-Use already?
    • Do the CC&R’s authorize, prohibit or are they silent to the issue?
    • May need to amend documents.
    • Must review master CC&R’s
  • Is your location appropriate?
    • Is the location Urban or Resort?
    • Is it in a prime location?
    • Is your property considered a drive to destination – within a 4 hour drive?
    • Is your location a Destination or Regional Resort area?
  • Is your product compatible for shared ownership?
    • What are the sizes and configuration of the units?
    • How many units exist now?
    • Quality of furnishing package?
    • What is the current ADR and what are the comparable rental rates?
  • Lender restrictions?
    • Are there any construction loan or permanent loan covenants?
      • Issue getting partial releases
      • Change of use covenants
    • Are there end-loan issues?
      • FNMA, FHA prohibition
  • Adequate amenity package?
    • Golf
    • Beach
    • Ski
    • Urban – shopping, restaurants, theatre, etc…
  • Local competition
    • Are there any competitors with shared ownership and or whole ownership in the vicinity?

If your property is a candidate, some of the economic benefits of implementing a “Shared Ownership/Timeshare” program would include:

  • Increased occupancy percentages
  • Higher ADR through occupancy compression
  • Lower fixed operating expenses – (costs get allocated to the HOA of the shared ownership product)
  • Higher overall net profits
  • Increased return on investment via the sale of under-utilized hotel inventory