It's a residence; it's a hotel : it is resitel! /
Midway through construction, a hotel developer realises that construction costs had shot up too much to be feasible for equity capital. They reposition the asset as a condominium hotel (naming it "ResiTel") wherein each suite will be sold as a condominium unit to retail buyers. This called...
| Main Authors: | , |
|---|---|
| Format: | eBook |
| Language: | English |
| Published: |
London :
Indian Institute of Management, Ahmedabad,
2024.
|
| Series: | SAGE Business cases.
|
| Subjects: | |
| Online Access: | Connect to the full text of this electronic book |
| Summary: | Midway through construction, a hotel developer realises that construction costs had shot up too much to be feasible for equity capital. They reposition the asset as a condominium hotel (naming it "ResiTel") wherein each suite will be sold as a condominium unit to retail buyers. This called for setting up two separate entities: One (PropCo) for asset management and the other (LeaseCo) for operating the hotel. Unit owners would earn a regular share of hotel income. The lenders protect additional sale-risk by more conservative loan terms. The developer must analyse the feasibility of the repositioned asset. |
|---|---|
| Physical Description: | 1 online resource : illustrations. |
| ISBN: | 9781071942376 1071942379 |