It's a Residence; It's a Hotel: It is ResiTel!
Publication date: 1 December 2023
Abstract
Midway through construction, a hotel developer realised that costs had risen too much to be feasible for equity capital. They repositioned the asset as a ResiTel wherein each suite would 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 protected additional sale-risk by more conservative loan terms. The developer must analyse the feasibility of the repositioned asset.
Keywords
Citation
Das, P. and Gupta, A. (2023), "It's a Residence; It's a Hotel: It is ResiTel!", . https://doi.org/10.1108/CASE.IIMA.2023.000049
Publisher
:Indian Institute of Management Ahmedabad
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