A group of condo hotel owners in Florida are bringing a class action lawsuit against WCI Communities Inc, claiming that the developer sold them condo hotel units at the Singer Island Resort as unregistered securities. These owners claim they bought the units as investments and not primarily for their own use and now want out of their contracts. WCI has no comment except that they intend to vigorously defend themselves against the lawsuit.
Other condo hotel owners at the Trump International Hotel and Tower in Las Vegas are fighting to rent out their own hotel units using their own operator clamoring that Trump takes too much of their rental revenue. The owners are demanding their down payments back and claim they were promised a share of the profits from room rentals. At time of purchase, the owners claim claim they were enticed by talk of high-yield rental returns that would cover mortgage payments and HOA costs. Specifically, they were informed that their rooms would rent as high as $650 a night on weekends, to only then be told the figure would be closer to $240. A Trump spokesman said the company’s rental agreements are competitive with other condo hotel rental management companies in the area.
Article Resources:
Condo-Hotel Buyers
See Investments Sour by Michael Corkery, Sara Lin, and Ruth Simon
From The Wall Street Journal Online
Housing slide hits home for buyers of condo hotel units by Tim O’Reilly at lvbusiness.com
Condo-Hotels Under Pressure By KRISTINA SHEVORY from www.NYTimes.com
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