Condo Hotel Mortgages

The condo hotel trend has been much ballyhooed, so why are lenders still sitting on the fence when it comes to consumer mortgage financing? Here are three simple reasons:

1.) The secondary markets (FNMA, FHLMC) have not seen enough condo hotel paper to grade the risks/rewards of this proportionately new asset class.

2.) Condo hotel is somewhere between a commercial hotel loan and a residential second home/investment property consumer mortgage, so they don't fit neatly into existing portfolios/guidelines.

3.) The yield/interest rate that a well-healed condo hotel purchaser is willing to pay on a 30-year mortgage is much lower than timeshare and other vacation ownership rates. Making this new yet-to-be determined risk hard to justify.

Many of the new condo hotel offerings are even more difficult to mortgage at market interest rates and terms, because they are smaller than 600 square feet in size, do not have kitchens, include FF&E chattel in the sales price, and may be in projects that include mixed use and timeshare/fractional components. Each of these items defy conventional mortgage guidelines.

Yet even given these challenges it is clear that lenders are closely watching the evolution of the condo hotel market. With each high-net worth, private banking client who purchases a condo hotel, bankers are being asked, "Why won't you lend me a conventional mortgage on this piece of real estate?" and lenders are being forced to get up to speed on this asset class.

As interest rates have risen, and the real estate markets in general have cooled, the lending community has been faced with increased capacity to lend. Lenders are beginning to seek new niche opportunities to fill their appetite for yield and loan volume, condo hotel mortgages present a unique opportunity that's time may have come.

High Credit Quality

The typical condo hotel purchaser is a high net worth consumer who is seeking a quasi-vacation home with hassle-free rental property benefits and investment potential. As with most mortgages, these borrowers sign personally for the debt, and typically put 20% or more in down payment. Underwriting guidelines for most of the existing condo hotel mortgage products require a borrower to qualify for the debt without any credit for the potential rental income from the property. A cash-flow loss is not a loss at all, if the hotel should fail to deliver any rental income. If they are truly purchasing with an intent to use and enjoy their condo hotel unit as a second home alternative, this consumer will be getting a luxury vacation condo for a fraction of the traditional condo ownership expense.

Where the Risks Lie

The greatest risk to lenders and consumers in condo hotel ownership is in the sales approach and intent of the purchase. Is the consumer buying an investment property or a vacation condo alternative? If during the real estate sales process the income potential was emphasized, the consumer will have a claim against the developer/Realtor who represented what could be considered a security. The SEC issued a 'no action' letter that discourages such practices, but many sales operations find it problematic to stay completely away from the topic of rental income when a consumer directly requests such disclosure and information. As lenders assess their risks in this asset class, this issue of 'perception of investment quality and intent for personal use' is very difficult to measure, but is of optimal importance. You can imagine a borrower who looses money every month, but enjoys their ownership experiences and is very pleased with his condo hotel. Or an investment minded consumer who tires quickly of their condo hotel when they are consistently writing checks instead of receiving them from a condo he never visits. The value of service, amenities and condo owner experience has never had more importance to real estate value.

The on-going hotel management is the next risk that is foreign to conventional residential mortgage lenders. Lenders entering this niche are often unfamiliar with the metrics and cyclical nature of the hotel business, and need to approve condo hotel projects with an eye to the long-term viability of the hotel, not just the credit quality of the consumer. If the hotel is mis-managed, replacement reserves are grossly under funded, or if the viability of the hotel market is deteriorating the consumer's ownership experience will suffer, and mortgage default risk rises rapidly.

Another risk is of valuation. The real estate industry measures of cost per square foot have been stretched by a residential condo hotel that includes name-brand management and designer label decorating, 42" plasmas and fine furnishing, spas, gyms and ski valets as part of the real estate package. Valuations of $1,000+ per square foot have been obtained and the sky looks the limit if this is our measure. The purchasers view is often of price point not price per foot, and is skewed further by the thought of owning part of an income producing and legendary hotel operation. But at these prices, the math may not work as an investment beyond the trophy value.

Lenders will enter this new market niche in mass when the answers to these risks is easier to measure through performance of the first wave of condo hotel closings which just began to occur this fall. The seasoning of these loans will be short when the greatest need for mortgage capital occurs beginning in Q3 2007, this situation has the potential to create a short-supply of mortgage options for marginal buyers in marginal projects. The dream of easy, low cost money for any real estate asset is over, and it's time to wake up and recognize that most buyers don't want to pay cash even if they signed a 'cash contract', financing matters to the viability of the condo hotel industry.

Riverside Hotel

The Riverside Hotel: A fantastic hotel that evolves with every traveler's changing needs

The Riverside Hotel in Putuo District, Shanghai, caters to a variety of guests-be it the businessman in town for a meeting or the traveler on a cultural trip. This hotel is located near Zhongshan Park, a famous commercial and shopping district, which makes it easier for guests to explore and discover the way of life of the locals. Because this Shanghai hotel is on the intersection of Kaixuan Road and Ningxia Road, and has easy access to Metro lines 2, 3, and 4, it is very accessible even to those who are not familiar with the area. Even first-time visitors won't have a problem navigating their way to the hotel.

The Riverside Hotel provides a variety of accommodations to suit every traveler's taste. There are deluxe suites in European and Chinese décor for those who want a more upscale and dressier kind of room. There are also superior rooms that have king-sized beds to accommodate couples and more rooms equipped with double beds. Whatever your purpose of travel is, the Riverside Hotel makes certain that your needs are met.

Guests can also pamper themselves using the hotel's myriad of facilities and amenities. Relax in a comfortable Eurasian-styled lounge, which serves refreshments round the clock. Feast on local fare that will whet your appetite at Qinghe Yuan Chinese Restaurant. Enjoy the night life with live entertainment or a fun KTV experience. Whatever you decide to do in Riverside Hotel, there is always something that will cater to your fancy.

Cheap Hotels of the Magnificent

Beijing the capital of People's Republic of China is one of the most famous and known for its most outstanding temples and must watch historically significant sights.It is one of the modern political, cultural and educational centers and has been an integral part of China since centuries. This city is like a treasure for tourists which offer great attractions for the tourist of all over the world.Beijing is now honored as the Six Ancient China Cities along with Xi'an, Luoyang, Kaifeng, Nanjing and Hangzhou.

Beijing has a history of around 3000 years and centuries of glorious era. During the first one thousand years of Chinese imperial history. Beijing used to be a gateway for China and land and spot for many of the battles in China. The city of Beijing is also known as Peking, which is the second largest city of China with around 16,800 square kilometers of area and with the population of 7.23 million. The count of temporary is about 3 million which are residing there for business and education. Mandarin Chinese is the official language of Beijing.

Beijing is a buzzing city with plenty of action, and offers a lot to everyone right from great historic sites to modern architecture, the Great Wall of China, The Temples of Heaven Park and a range of shopping and lots of eateries. The Forbidden City is one of the largest imperial palace complexes in the world with around 9999 rooms. This excellent palace is surrounded by the moat of six meters deep and ten meters high wall. This palace used to act as the administrative center for China. Another must visit attraction of Beijing is the Great Wall of China which is enlisted in the World Heritage Directory. The purpose to build this massive wall was to keep the extruders away and to retain the inhabitants.

Luxury The Emperor Hotel - this five star and business hotel is situated ideally near Jingshan, Tiananmaen Square and is meant to provide unique services and comfortable stay. The 55 rooms of the hotel are tastefully decorated and are equipped with all the modern amenities. The experienced and generous hotel staff remains in the service all round the clock for making your stay a memorable one.

Beijing being the most sought after tourist destinations for the tourist of all over the world, it offers a wide range of hotels that varies from luxury, business, bed and breakfasts and budget hotels. If you are looking for luxury hotels in China, you don't need to work even a bit as it offers a range of luxury with broad options. Hotels such as The Emperor, Hotel G, The Regent Beijing, Shangri- La Hotel, The Peninsula Beijing are some of the most renowned hotels known for its high quality accommodation and comfort.

Cheap Hotels such as A.C Embassy, Ao Xiang Ge, Dongdan Hotel and many more are meant to provide the most comfortable and quality accommodation at the most comparable rates. The A.C.Embassy Hotel is ideally situated right in the middle of all the happenings and in close proximity to Australian Embassy, several business centers and exhibition centers. The rooms of the hotel are equipped with all the modern amenities and facilities for making your stay full of comfort and memorable.

Top Hotels in Beijing

There are a lot of hotels in China. Among China hotels, hotels in Beijing are the best choice of accommodation. The best hotels in Beijing are all five-stars.

No matter if it's for business travel or leisure travel, the hotels in Beijing provide the guests the best and most thoughtful services. Therefore, in the functional design, the top Beijing hotels are emphasis on comfort, function oriented and high-tech, and also give prior consideration to the needs of the guests. Here are three of the top Beijing hotels that visitors can choose to stay in.

China World Hotel: Locates in the heart of Beijing political and commercial area, and is well received by a variety of people. With a total of 745 rooms and luxury suites, the in-room modern facilities are readily available, including luxury desk, international direct dial telephone, satellite broadcasters and restaurant special films. Every morning, the guests at the hotel can enjoy dining in the hotel's restaurants and take part in a variety of activities. Guests can also enjoy the sauna, steam bath and professional massage stream. It is fantastic!

Beijing Kerry Center Hotel: It is located in the central business district, with a very convenient transportation. There are 487 guest rooms and suites, each has a well-designed desk, color TV, private safe, refrigerator, mini-bar, private bathroom and so on. In addition, there are several noteworthy restaurants in the hotel, including Horizon. The Horizon gives the guests exclusive VIP-style service. Enjoy free daily breakfast and free local calls in the Horizon make the guests feel comfortable and convenient.

Beijing International Hotel: It is a five-star hotel located in the central area of foreign affairs and business. The hotel has a very different style of luxury suites, which is of luxury and simplicity, elegance and brilliance as a whole, displaying the different aspects of Western and Eastern civilization. 1049 well appointed guest rooms and suites, equipped with central air-conditioning control system, mini bar, refrigerator, electronic locks, and international direct dial telephone. The hotel has a convenient traffic and a quite environment, as well as the perfect restaurant facilities, all of which make the hotel is the first choice for people spending holidays in Beijing.

Shanghai Hotels

Shanghai is one of the most beautiful and ultra-modern cities of world. It is among the top-most tourist destinations on tourism portfolio. Every year thousands of people visit Shanghai for tourism purpose and Shanghai offers a number of options of lodging/staying in city. That ranges from the 5-7 star luxury hotels to cheap inns and lodges. As per the different necessities of tourists who come from all over the world, Shanghai hotels have a good record to cater their requirements, be it food, international cuisines or other facilities.

Most hotels offer attractive tourist packages suitable for everyone's pocket and the online booking facilities from any part of world makes the trip more easy and convenient. In 5 star category, Les Suites Orient Bund Shanghai Hotel, Howard Johnson Plaza, Okura Garden Hotels and Salvo Hotel are the major names. Those Shanghai hotels who offers cheap rates with less facilities could be located in remote areas but at those places you can experience the local culture, meet with local people and enjoy the street food.

The luxury hotels are mainly located near the shopping complexes and trade centers but with higher prices. In such a condition, Salvo Hotel is a good option, which is located at Nanjing Road in the heart of Bund Commercial Zone. It is also near to Shanghai Metro Station, Road Tunnel and Shopping Street. Its unique architecture is a blend of traditional Chinese style and the concept of 21st century, with 600 guest rooms including Meeting-Conference rooms, recreation rooms for children, Gym and Fitness Clubs and a variety of Chinese, Japanese and western cuisines.

Portman Ritz Carlton Hotel is another prominent name in luxury hotels, known for the lavishing interior of each room, which depicts the Chinese art and modern lifestyle amenities. Hotel provides the luxury spa, beauty and other health treatment facilities with international norms. Ritz's Sunday Champagne Brunch and exotic Buffet are popular attractions for guests.

The per room charges in Shanghai hotels ranges between 50$ to 200$, it depend on the luxurious facilities, location and distance to Airport, Metro stations and tourist sights. Many 3 star and other budget hotels provide discount in off-season time without any compromise with standard facilities. It is advised to make advance booking in hotels to make your journey pleasant and comfortable because hotels remain fully occupied in peak season that is usually in September, October and March.


Selma Sara is an hotelier with more than 10 years of experience in the travel and tourism industry. In her professional career, she has worked across 3 continents for leading hotel chains. Presently, she writes about changing trends in the world tourism market. Know more about Shanghai hotels and Shanghai China Hotels.

Xian, China Hotels

Xian Overview

Xian is located in China and is one of the most famous historic cities in the country. Xian is a city that one can experience much of the cultures in China within just this one location. The history behind Xian is extensive and this city holds much historical significance to the people of China. In fact, it is said that walking around the great city of Xi'an is like stepping back thousands of years in time. Xian is easily one of the most trafficked tourist cities in China, with more than a million foreign tourists visit each year.

World Class

Because of the booming tourist industry in Xian, the hotel industry is booming as well. In Xian, there is a wide range of hotel options available to tourists. Hotels in Xi'an will range from the highest class five star hotels to cheaper hotels that are affordable for virtually any type of traveling budget. The hotels in this city that are the most renowned will have appointed rooms and suites with a range of in-room facilities. These renowned hotels will also offer their guests many in-hotel facilities such as a bar, spa, salon, health club, beauty salon, restaurants and much more. Sofitel at Renmin Square in Xian is widely regarded as the most luxurious hotel. It offers fantastic faculties at a reasonable price by western standards

Hotels in Xi'an which offer these sorts of luxuries to their guests are of the highest standard, but are still moderately priced. Therefore, even those who are on a relatively strict vacation budget while in Xi'an may find that the most luxurious hotels are in their price range. Of course, those with strict budgets who are interested in experiencing the most luxurious hotels may have to cut costs in some other way to make their stay at one of these hotels more financially comfortable.

Budget

For anyone who does not feel financially secure enough to book a room with one of these world class or five star hotels will find that the alternatives are not so bad. The budget hotels that are located within the city of Xi'an are not only affordable, but they also offer a level of standard that some may not associate with a budget hotel. These budget hotels may not offer in-hotel facilities such as bars or restaurants, but they do offer well-kempt rooms that are more than accommodating for the prices a guest will pay. Guests in these budget hotels will find that they are comfortable and safe. Some budget hotels may offer certain accommodations that others do not, so be sure to shop around for the right budget hotel.

Location

The location of the hotel is another factor you will want to consider when looking for the right Xian hotel to fit your needs. In Xian it is highly recommended that you stay inside the city walls for the maximum benefit. If you are interested in staying close to a certain attraction or site, you should check what hotels are in the closest proximity to important destinations that you wish to visit while in Xian. In most cases, you will find both the luxurious and the budget hotels close to some of the main tourist sites that you might be interested in visiting.

Tips:

1. Try to establish contact with a hotel before you arrive so you can ask any questions. Don't just rely on search engine booking agents

2. Check the hotel on places such Trip Advisor. Although not entirely accurate, Trip advisor can give you an idea, particularly if the accommodation in Xian has over 30 reviews by members who have reviewed many times previously

3. Remember you are in a foreign country so please don't expect your hotel to be exactly the same as you have stayed in before. Experiencing difference is the main reason for travel after all

4. Rates may vary according to the season. For example hotels in Xian are usually cheaper from Dec- March

5. Don't pay in advance - wait until you arrive to pay so if you are not happy you are not stuck in that accommodation for the duration of your trip