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    Condo Hotels - A Breakdown of the Right of First Refusal
    by Branden Lewis


    As the Condo Hotel industry evolves, developers are finding various ways of protecting their own interests. One way of doing this is including a provision for a Right of First Refusal in the condominium documents. Typically, a Right of First Refusal states that a Condo Hotel Unit Owner (Unit Owner) has to allow the Hotel Owner the ability to match any outside offers for the sale of the unit. For example, if an owner at a particular Condo Hotel places there unit for sale on Condo Hotel Marketplace and a prospective buyer makes them an offer of $900,000, the owner must allow the Hotel Owner the ability to match the prospective buyers offer. If the Hotel Owner decides to match the offer, the owner of the unit must sell their unit back to the Hotel Owner for $900,000 due to the Right Of First Refusal provision agreed upon in the condominium documents. While the Right of First Refusal might seem like a burden to the seller, in the end, the seller still gets their asking price of $900,000, regardless of who buys the unit.

    As the Condo Hotel industry evolves, developers are finding various ways of protecting their own interests. One way of doing this is including a provision for a ?Right of First Refusal' in the condominium documents. Typically, a Right of First Refusal states that a Condo Hotel Unit Owner (Unit Owner) has to allow the Hotel Owner the ability to match any outside offers for the sale of the unit. For example, if an owner at a particular Condo Hotel places there unit for sale on Condo Hotel Marketplace and a prospective buyer makes them an offer of $900,000, the owner must allow the Hotel Owner the ability to match the prospective buyers offer. If the Hotel Owner decides to match the offer, the owner of the unit must sell their unit back to the Hotel Owner for $900,000 due to the Right Of First Refusal provision agreed upon in the condominium documents. While the Right of First Refusal might seem like a burden to the seller, in the end, the seller still gets their asking price of $900,000, regardless of who buys the unit.

    Branden Lewis is a founding partner of Condo Hotel Marketplace, an online portal dedicated to the advertising and marketing of vacation properties for sale or for rent. To learn more about selling or renting a condo hotel, please visit http://www.condohotelmarketplace.com

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