Hotel Integration, Rental Hotel Integration, Rental Agreements and Brand Agreements and Brand

StandardsStandards Condo/Hotel ModelsCondo/Hotel Models

Model 1Model 1o Developer retains ownership of hotel common Developer retains ownership of hotel common

areas, including food and beverage operations areas, including food and beverage operations and a significant percentage of the hotel units. and a significant percentage of the hotel units. The balance of the units are sold to individual The balance of the units are sold to individual purchasers.purchasers.

o Developer enters into hotel management Developer enters into hotel management agreement with Brand.agreement with Brand.

o Developer also enters into rental management Developer also enters into rental management agreements with individual condo/hotel agreements with individual condo/hotel purchasers.purchasers.

Model 2Model 2o Developer sells all condo units and retains Developer sells all condo units and retains

ownership of common areas, including food ownership of common areas, including food and beverage operations.and beverage operations.

o Developer enters into hotel management Developer enters into hotel management agreement with Brand.agreement with Brand.

o Developer enters into rental management Developer enters into rental management agreements with individual condo/hotel agreements with individual condo/hotel purchasers.purchasers.

Hotel Integration, Rental Hotel Integration, Rental Agreements and Brand Agreements and Brand

StandardsStandards

Model 3 (Trump Model)Model 3 (Trump Model)o Developer creates traditional condominium. Developer creates traditional condominium.

Condominium Association manages all Condominium Association manages all common areas. Developer sells all common areas. Developer sells all condominium units.condominium units.

o Condominium Association enters into hotel Condominium Association enters into hotel management agreement.management agreement.

o Hotel Manager or Condominium Association Hotel Manager or Condominium Association enters into rental management agreements enters into rental management agreements with individual condo/hotel purchasers.with individual condo/hotel purchasers.

Hotel Integration, Rental Hotel Integration, Rental Agreements and Brand Agreements and Brand

StandardsStandards

From the Brand PerspectiveFrom the Brand Perspective The first two models are preferable The first two models are preferable Advantages for a Branded Hotel Advantages for a Branded Hotel

OperatorOperatoro The Condo/Hotel Model facilitates the The Condo/Hotel Model facilitates the

construction of new Hotelsconstruction of new Hotelso Exposes the Brand to a large number of Exposes the Brand to a large number of

high income potential customershigh income potential customerso Creates Brand LoyaltyCreates Brand Loyalty

Hotel Integration, Rental Hotel Integration, Rental Agreements and Brand Agreements and Brand

StandardsStandards

Challenges for the BrandChallenges for the Brando Rental Management ContractsRental Management Contracts

Inventory ManagementInventory Management Compliance with Brand StandardsCompliance with Brand Standards Accounting IssuesAccounting Issues

o Managing Hotel Operations vs. Managing Managing Hotel Operations vs. Managing the Condominiumthe Condominium

Understanding the difference between Condo Understanding the difference between Condo BudgetsBudgetsand Hotel Budgetsand Hotel Budgets

Compliance with Brand StandardsCompliance with Brand Standardso Control of Common AreasControl of Common Areaso Protecting the BrandProtecting the Brand

Hotel Integration, Rental Hotel Integration, Rental Agreements and Brand Agreements and Brand

StandardsStandards