Real Estate Development: Resort and Hotel Properties
Hotel development and financing has always been a challenging area of real estate development. Conventional real estate lenders do not like the long time it takes for a new hotel to build a customer base and become profitable. Combined with cyclical tourism markets and smaller resale markets, many lenders are not keen to service this market. One principle source of financing in recent years is the development of strata hotels and fractional ownership structures that have achieved various degrees of success.