Across the Caribbean, Mexico, and U.S. resort markets, we’ve seen a growing trend: a developer builds a stunning collection of luxury villas or condos—only to realize they can create far more value by transitioning the project into a condo hotel concept.
When executed well, this pivot can transform a beautiful real estate development into a high-performing hospitality asset that generates ongoing revenue, strengthens resale values, and attracts global buyers. But making the shift is more complex than simply adding a front desk and booking website.
At Luxury Hospitality Advisors (LHA), we help developers successfully make this transition, ensuring the project operates like a true luxury hotel—not just a rental program. Here’s what’s involved and how we help at every stage.
Define the Vision & Brand Positioning
A condo hotel is first and foremost a hotel. The brand positioning needs to be clear—what market are we targeting, and how will it stand apart?
• Market analysis to understand rate potential and competitive set
• Brand positioning strategy to ensure the experience matches the rates
• Identifying potential hotel brands or soft brands to align with
Create the Hotel Operating Model
The right operating model is the backbone of the business. We help determine:
• Room mix & unit participation in the rental pool
• Owner use policies that balance guest availability and owner satisfaction
• Revenue-sharing models between owners and operator
• Centralized services, amenities, and staffing structure
Design & Operational Enhancements
Luxury residences often need upgrades to meet true hotel standards. We coordinate with designers and contractors to ensure:
• Consistent furniture, fixtures, and equipment (FF&E) standards
• Hotel-grade housekeeping, laundry, and maintenance systems
• Guest technology: keyless entry, property management system (PMS), Wi-Fi, in-room tech
• Lobby, reception, F&B, spa, and other shared spaces designed for both guests and owners
Branding, Sales, & Marketing Integration
A condo hotel needs two sales strategies: one for real estate, one for nightly stays. We:
• Develop integrated marketing to sell both real estate and hotel stays
• Build a direct booking strategy alongside OTA/distribution planning
• Establish brand voice, digital presence, and PR initiatives
• Create collateral and sales tools for both buyers and guests
Legal & Financial Structuring
Switching from pure residential to condo hotel impacts ownership agreements and legal compliance. We work with legal teams to:
• Update HOA/condo documents for hotel participation
• Create rental pool agreements
• Define insurance, licensing, and tax structures for hospitality operations
Operator Selection & Pre-Opening Management
A successful condo hotel requires a skilled operator—sometimes a brand, sometimes an independent manager. We:
• Identify and negotiate with operators
• Oversee pre-opening activities from staffing to service training
• Ensure standards are in place for opening day and beyond
Ongoing Asset Management
We continue to work alongside the developer and owners to:
• Monitor performance against budget
• Maintain brand standards
• Optimize revenue, expense control, and guest satisfaction
• Guide future enhancements to keep the property competitive
Why This Matters for Developers
Without proper planning and execution, a condo hotel risks becoming an inconsistent guest experience with underperforming revenues—and frustrated owners. With the right approach, it can be a profitable, prestigious, and sustainable asset that delivers both strong ROI and long-term value for every stakeholder.
At LHA, we bridge the gap between luxury real estate development and high-performing hospitality operations—turning a collection of beautiful residences into a sought-after hotel destination.
For additional articles on luxury hospitality and real estate, visit the LHA Library here.