Hotel Living in a Condominium
Published on 12.13.2019
It takes the perfect blend of colorful history, superb location, iconic architecture and an elite, sophisticated citizenry to create an international destination – a place where every moment is a celebration. This is the essence of Via Mizner, an exclusive, landmark address in the heart of a beloved community, perfectly crafted for world-class lifestyles.
As one of a select few locations worldwide with a residential property bearing the Mandarin Oriental name, The Residences is truly a signature address. Upon arriving at the private entrance lobby, the cascading water element and grand staircase only hint at the striking design and details that abound throughout. Incomparable sophistication is imbued into each of the eighty-nine, light-filled homes that celebrate the Boca Raton lifestyle with absolute comfort and complete security.
For over fifty years, Mandarin Oriental Hotel Group’s reputation for impeccable service, distinctive designs and renowned, holistic spas has been key to its rapid expansion across the globe. Today, the company operates thirty-two hotels and seven Residences at Mandarin Oriental in 23 countries and territories. A dedication to the highest levels of customer satisfaction year after year has garnered Mandarin Oriental Hotel Group a most enviable ranking as a recognized leader in worldwide luxury hospitality.
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Condo developers have placed splashy names on their buildings for years. But add the name of a hospitality brand and it speaks of a lifestyle experience that appeals to more condo residents.
Increasingly, condo dwellers seek high-end services such as a concierge, housekeeping, and on-site food and beverage – services that hospitality companies excel at delivering.
It’s no surprise, then, that brands such as Ritz-Carlton, SLS and Mandarin Oriental have partnered with South Florida condo developers to name and manage their buildings.
“Buyers these days want to feel that they live in a residential unit with hotel services,” said Carlos Rosso, president of Miami-based Related Group’s condo development division. “They want to go down to a restaurant and have spa services in the building.”
Many developers say this has increased the prices and boosted sales. However, condo buyers must ensure the relationship between the hospitality company and the property lasts over the long term to fully maximize their investment.
Beyond a typical condo
A hospitality firm can be integrated with a condo in several ways. Both SLS Lux Brickell and SLS Brickell Hotel & Residences have condos co-developed by Related and separate hotels run by SBE. The hospitality brand runs the restaurants and are available to provide hotel-level services, Rosso said.
Auberge Beach Residences in Fort Lauderdale lacks a hotel, but its high-end restaurant and spa are managed by Auberge Resorts, which can host and cater parties for condo residents, Rosso said.
“You don’t necessarily need a full-fledged hotel to give buyers that branding and service,” he added.
Ritz-Carlton has been training staff at the recently completed Ritz-Carlton Residences, Miami Beach to deliver a five-star-hotel level of service, said Ophir Sternberg, CEO of developer Lionheart Capital.
The staff will get to know Ritz-Carlton residents and their families so they can cater to their daily needs, including arranging birthday parties and transportation, stocking refrigerators, and setting up their dinner and flowers.
“The chef will get to know the residents and customize the menu for them,” Sternberg said of the condo’s exclusive restaurant. “In the garden, we created a food forest. We are growing organic herbs and vegetables the chef will use in the restaurant.”
For the Residences at Mandarin Oriental, now under construction in Boca Raton, the staff will provide hands-on services such as changing sheets, walking dogs and buying items, said Frank Weed, VP of development and construction at Penn-Florida Cos. The guests can expect incredible food in a members-only dining club, given the quality of the many Michelin-starred restaurants at other Mandarin Oriental locations, he added.
While the Ritz-Carlton and Mandarin Oriental brands prioritize exclusivity and long-term residents, the Yotel brand invites short-term-rental guests. The YotelPad Miami sold all 231 condos during construction. It will also feature 222 hotel rooms.
While Yotel is a relatively new brand, it convinced buyers – who were mostly investors – that the units would be easy to operate as short-term rentals thanks to direct management by Yotel, said David Arditi, principal of Aria Development Group and co-developer of YotelPad. In most condo buildings, short-term rentals are either prohibited or management doesn’t provide short-term guests full access to the building’s amenities.
“It was the right brand, the right product, the right price and with the right rental policy,” Arditi said.
Brands impact pricing
The name brand of a hospitality company and all those extra services come at a cost to buyers – and a premium for developers.
Adding a hospitality brand to a condo project generally increases prices by 15% to 20%, said James V. Andrews, senior managing director of the Miami/Caribbean office of research firm Integra Realty Resources. They provide the most value to condos that can be rented out through a hotel pool or short-term rentals through home-sharing services such as Airbnb.
Pay close attention to association fees, Andrews advises, since they are often steeper for condos rented out because the management company includes extra hospitality-related charges and expenses incurred by guests.
“Guests usually leave the lights on and open the balcony door, so the utility costs are higher,” he said. “If you are an owner user or a second homeowner, you need to have an HOA structure that is more akin to what a residential product would be and not pay for extra services you aren’t using.”
Retaining brand management
Maintaining quality service for the long term is the key to a building’s success. And while the hospitality brand is often tied to the building through a naming and management contract, those deals may not last.
In 2015, the Canyon Ranch Miami Beach condo lost its branding after the project was sold through bankruptcy. The buyers found themselves living in the Carillon Miami Wellness Resort under a different hospitality management firm.
In some cases, the hospitality brand isn’t involved in the building beyond licensing the brand, said Susan Fitch, president of Dania Beach-based Akam On-Site, which manages about 75 condo buildings in South Florida. Management performance can decline over the years once the residential condo association takes over, she added.
“It’s going to be very difficult for building directors to hold onto the five-star experience,” Fitch said. “[Condo owners] wonder five years later: ‘Where did the hotel services go?’”
Rosso said he’s confident SBE will maintain the quality of the lifestyle at its SLS projects in Miami because it operates hotels in both buildings.
“They will always be there to provide all the services owners want,” he said.
We are pledged to the letter and spirit of the U.S. Policy for achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising, marketing and sales program which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status or national origin. The sketches, renderings, pictures, photos, and designs depicted or described herein are conceptual in nature and are not to scale, are based upon preliminary development plans, may depict options, upgrades, features or views not available in all model types and are subject to change without notice in the manner provided in the applicable purchase agreement. No guarantees or representations whatsoever are made that any features, amenities or other facilities will be provided or, if provided, will be of the same type, size, location or nature as depicted or described herein. Any view from a unit or from other portions of the property may in the future be limited or eliminated by future development or forces of nature. Nearby golf courses, open spaces and other areas are not owned or operated by the Developer and there is no guarantee they will be operated or maintained for any particular purpose or in any particular manner. Many of the facilities within the project will not be located within the Residences. Certain facilities or services described herein will be provided by the hotel or club operators or others and may be subject to additional charges. Membership in the Club will be mandatory for unit owners and will require payment of additional dues, fees and costs. A substantial number of Club memberships will be available to non-residents. Business establishments may be sold to third parties, may be used for different purposes, and may change or discontinue operation at any time.
An offering is made only by the prospectus for the condominium and no statement should be relied upon if not made in the prospectus or in the applicable purchase agreement. Penn-Florida Realty Corporation is the Developer’s exclusive broker for this project. No solicitation, offer or sale of a unit in the Residences will be made in NY, NJ, or in any other jurisdiction in which such activity would be unlawful. Via Mizner Owner III, LLC (“Developer”) is a newly-formed entity, which is the sole offeror of the units being offered for sale as The Residences at Mandarin Oriental, Boca Raton (“Residences”). Penn-Florida Capital Corp. and the other “Penn-Florida Companies” are affiliated with the Developer but are not the developer of the Residences. All statements and any representations herein shall be deemed to have been made solely by Developer. An affiliate of the Developer is developing the adjacent proposed Mandarin Oriental, Boca Raton hotel (“Hotel”) and the rental programs, if any, offered to unit owners in the Residences. Neither Mandarin Oriental Hotel Group nor any of its affiliates, nor their respective Officers, Directors, Agents or Employees (collectively, “MOHG”), are in any way owners, offerors, promoters, issuers or underwriters of, or responsible or liable for, or are making any representations or warranties with respect to, the Developer, construction of the Residences, any offering for sale of the real property constituting the Residences, or any increase or return on related investment. MOHG has not assumed and has no liability or responsibility for any financial statements, projections or other financial information contained in any sales and marketing materials, prospectus or similar written or oral statements relating to the Residences. Developer has the sole right and responsibility for the manner and means by which the Residences are sold, and for all representations in relation to the Residences. Developer has obtained rights to use the “Mandarin Oriental” name and trademarks (“MOHG Marks”) in connection with the Residences and the Hotel subject to the terms and conditions of non-exclusive license agreements which may be terminated at any time upon certain occurrences. The right to use the MOHG Marks in connection with the Residences is thus not guaranteed and no such right is included in the Residence being acquired by any purchaser. If any of the relevant agreements are terminated, or Mandarin Oriental ceases to manage the Hotel or Residences for any reason, use of the MOHG Marks in connection with the Hotel and Residences may be terminated at MOHG’s discretion.
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Photographs and artwork are lifestyle photographs and conceptual artist renderings.