National Association of Condo Hotel Owners Enter the Equation
By Irvin W. Sandman and Russell C. Savrann
May 2, 2006
Earlier this week, our client, the National Association of Condo Hotel Owners, a nonprofit association headquartered in Scottsdale, Arizona, announced its launch and the launch of its web site, www.nacho.us. The Association impacts the issues currently confronting the condo hotel industry.
Under applicable securities laws, the sale of a condo hotel unit may be deemed a sale of a security unless the information flow to potential buyers is substantially limited. (See Condominium-Hotel Development: Beware the Securities Law Minefield, June 2, 2005.) These securities laws may be having an unintended consequence. Because the laws inhibit developers from providing unit buyers with information on the feasibility of a hotel, the marketplace may not be working efficiently to distinguish good projects from bad ones.
The National Association of Condo Hotel Owners is entering this equation. It seeks to address the inefficiencies and thereby benefit and protect the fledgling condo hotel industry.
We would be pleased to discuss your comments and questions about this association and its implications for your company and the industry in general.
For more information on this topic, please contact Russell C. Savrann (206.340.9665 or rsavrann@grahamdunn.com) or Irvin W. Sandman (206.340.9641 or isandman@grahamdunn.com).
