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Developers

Wholesale Vacation Club Program

"Significantly Increase cash flow, bottom line and financial leverage"​

Hospitality representation LLC aids developers with monthly cash flow, increased profits, increased sales, as well as providing our lenders peace of mind.

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Although Hospitality Representation LLC specializes in hospitality-oriented properties, we have found that many property developers receive benefits to working together to meet mutual goals. ​


New developers that start to work with us have had an inventory of unsold completed units whereby their new sales were equal to or less than the number of units that they complete in the same time frame. This meant that they had a block of inventory that could in fact be used in the program to add cash flow as well as to increase their bottom line.  They also found that having more people in the community, gave prospective buyers a more positive feeling about the community as well as the possibility of a ‘rental program’ for those potential buyers.


Although completed units tend to be unfurnished, our developer clients found that their cost to furnish and set up a block of units is offset fairly quickly by the added revenue of the rentals. 


Since most developers already have an on premises sales office, they can easily utilize a staff member once or twice a week to handle check ins, check outs, and to arrange housekeeping. One developer offers concierge services to guests twice weekly and earns significant commission income which they share with their staff member who handles this. In another case, the developer does not have an onsite sales office but arranges for a staff member to attend each check in and such, as above.

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Currently Hospitality Representation only has 2 programs that may assist developers. The first is a program allowing developers to be represented at hospitality trade shows and consumer shows that HR attends to enable exposure to our client properties. This program is part of a package of services that are offered to our hotel, time share, vacation home, and vacation rental clients. 

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The program that seems to fill the needs of developers of condos, homes, timeshares, apartments and other properties that are located in areas that folks would like to spend time in, would be our Wholesale Vacation Club program. 

This program can benefit developers in the following ways:

Requirements for Acquiring New Properties

Hospitality Representation LLC will consider entering into leases with developers for new properties even if the property is only in the planning stages, some of the requirements/terms consist of the following:

  • Complete plans/renderings (not architectural plans but a proposal), the project developer should send Hospitality Representation LLC a complete proposal consisting of locations renderings and details as well as all aspects of the project to be considered.

  • Must be in locations we desire.

  • Information on the surrounding area itself, such as activities,  restaurants, markets and any other interesting things to do. Any other reasons as to why this location would be good should be included

  • Complete background of the project developer as well as the general contractor including previous verifiable projects that the project developer and contractors have done that could indicate the capability of completing the project

  • If the project developer does not hav experience they can hire a project manager and bring people on who have the relevant experience

  • Financing: the project developer must provide proof that the project developer has sufficient funds for the project.

  • Hospitality Representation LLC will consider bulk leases for blocks of units and also entire buildings or projects for up to a 20 year term

  • Management: the project developer must provide a resume of the management company to show their experience and capabilities, this is waived if Hospitality Representation LLC is leasing the entire project/building in which case Hospitality Representation LLC will provide a  management company.

  • If the project developer would like some assistance by being provided approved contractors, management teams etc, Hospitality Representation LLC will be more than happy to do so

  • With the satisfactory assimilation of a project, Hospitality Representation LLC will add the developer to a list of approval which means that with any other projects that may come in the future from this project developer will be easier to come to an agreement with Hospitality Representation LLC

  • Any project management and project developers that are on our approved list don’t need any submitted background. 

Contracting New developments:

With new projects it is required to be approved a minimum of 18 months before project completion. Leases must be signed 18 months before project completion. The approval process takes approximately 3 to 6 months

Pros and Cons for Property Developers

Pros:

  • Adds income while units sit empty lowers the carrying costs of the project or produces revenue

  • Adds comfort to lenders as the project brings in higher income than originally projected 

  • Added marketing exposure and ‘captive’ new potential buyers as members staying in units get first-hand experience of property and may purchase or may recommend to others

  • Added activity in the complex may offer a more secure feeling to potential buyers

  • Immediate income for property

  • Ease of substituting similar type units at almost any time in the program if a unit is sold

  • Added selling tool of having a guaranteed rental program

  • Possibility to add units as they are completed (on mutual consent)

  • Some developers decide to retain some units as an investment knowing they will be producing guaranteed income

  • Some developers may build additional units as an investment knowing they will be producing guaranteed income

  • Single point of contact for all the units combined

  • Better long term planning for property and lower overstaffing risk

  • Higher gross and net revenues from elimination of vacancy factor, marketing and broker costs, etc.

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Cons:

  • Unit is being used rather than remaining empty and brand new

"Inventory Procurement for the travel industry   and increased occupancy for the hotel industry"

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