The Condo Hotel Rental Program Agreement
By Russell C. Savrann
February 2, 2006
As Bart Bartholdt concluded in his article "The Condo Hotel: When Might the Security Laws Apply" (© 2005 Graham & Dunn PC), "[s]tructuring a rental program to be offered in connection with Units in a condo hotel, in such a way as to avoid the securities laws, requires careful attention." In the spirit of "careful attention" this article looks at elements of a rental program agreement ("Agreement"), offering comments and discussion illustrating the unique operational issues it presents. Each project and hotel owner is unique, therefore the guidance and language provided is intended as a starting point for the drafter.
These comments focus on the requirements of the hotel owner. Developers and their counsel should carefully review the need to balance standards and rights of hotel guests with the property rights of the unit owner and the Home Owners Association. As this is an evolving practice area without a long track record with regard to branded Condo Hotels, it is important to keep abreast of local and state requirements. These guidelines are derived from sources in use within the State of Florida which has the most mature condo hotel market. As each project is unique not all of the guidelines and suggestions I have included in this article may apply.
To continue reading the full article, please view the attached document, The Condo Hotel Rental Program Agreement.
