Are Hotel-Condos A Big Gamble?

A number of Hotel-Condo projects have been proposed all over Chicago. But as yet is an untested concept in Chicago. Not even one of the units have come into the market so nobody knows what the trend will be like. Analysts are skeptical about all the projects becoming a reality.

It is a big gamble. For the projects to succeed Chicago needs long term buyers not speculators and recovery of the hotel market which is now on the downhill. Other factors which need to be favorable include stable interest rates and tax deductions to be allowed on second homes.

Inspite of everything there will be some failures. Why then is Chicago seeing a boom in such project proposals. As traditional financing dries up hotel developers are looking at different ways of raising money and hotel-condos are one such avenue. You are using other people's money to build and run your hotel. The condo buyers are not looking for big return on investments they are looking for place to stay when on vacation or as a long term investment.

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