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Microsoft PowerPoint - Hotel and Condominium Comparison

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					Hotels and Condominiums
Costs, Values, and Entitlements


  City of St. Pete Beach
  October 7, 2006
      Presented by Owen Beitsch, Ph.D., AICP, CRE
      Executive Vice President, Real Estate Research Consultants
Presentation Overview
 • Cost of building a hotel
 • Values of land related to cost of
   building hotel
 • Physical attributes of the hotel
 • Size of the parcels related to
   the size of the hotel
 • Condominium land values
 • Comparison of supportable
   land values for hotels and
   condominiums

                                       2
Hotel Development Costs Per Room
 Costs Per Full Service Hotel Room Excluding Land:

 •   Full Service Holiday Inn - $80,000-$85,000
 •   Crowne Plaza - $90,000-$100,000
 •   Renaissance - $90,000-$180,000
 •   Sheraton - $103,000-$245,000
 •   Westin Grand Bohemian – St. Petersburg - $350,000

 Land Costs Per Room (10% - 12%):

 •   Full Service Holiday Inn - $10,200
 •   Crowne Plaza - $12,000
 •   Renaissance - $21,600
 •   Sheraton - $29,400
 •   Westin Grand Bohemian – St. Petersburg - $42,000

 • Land Costs Range - $10,200-$42,000 per room
                                                         3
Actual Hotel Land Sales in Select Markets

• Markets included: Downtown San Antonio, TX,
  Fredericksburg, VA, Princeton, NJ, and
  Baltimore, MD
• Type of hotel ranged from Limited Service to
  Upscale Full Service
• Sales price ranged from $1,200,000 to
  $2,940,000
• Acreage – 0.3 to 15.3 acres
• Sales price per acre - $182,332 to $6,107,904
• Rooms – 120 to 463
• Land price per room - $6,037 to $20,704


                                                  4
Actual Hotel Land Sales in Select Markets

• Markets included: Downtown San Antonio, TX,
  Fredericksburg, VA, Princeton, NJ, and
  Baltimore, MD
• Type of hotel ranged from Limited Service to
  Upscale Full Service
• Sales price ranged from $1,200,000 to
  $2,940,000
• Acreage – 0.3 to 15.3 acres
• Sales price per acre - $182,332 to $6,107,904
• Rooms – 120 to 463
• Land price per room - $6,037 to $20,704


                                                  5
      Pinellas and Orlando Hotel Analysis

Pinellas Hotel Land Sales:
• Land value per hotel unit - $10,518 - $48,493
   (average of $23,619)
• Land value per bldg. sq. ft. - $15-$75
   (average of $34)
• Average F.A.R. - .89;

Orlando Hotel Land Sales:
• Land value per hotel unit - $13,614 - $64,760
   (average of $27,299)
• Land value per bldg. sq. ft. - $17-$60
   (average of $35)
• Average F.A.R. - 1.44

•   Supportable land prices per room do not vary
    significantly from market to market
                                                   6
Hotel Land Values in Pinellas

•   Residence Inn - Clearwater – 2.1 acres, 115
    units, Land Value - $1,700,000 - $14,800 per
    unit/ $21 per BSF, F.A.R. – .88

•   Fairfield Inn and Suites – Clearwater – 4.3
    acres, 109 units, Land Value - $5,300,000 -
    $48,500 per unit/ $75 per BSF, F.A.R. – .37

•   Hampton Inn & Suites – Largo – 2.6 acres, 92
    units, Land Value - $970,000 - $10,500 per
    unit/$13 per BSF, F.A.R. – .55

•   Sandpearl Resort – Clearwater Beach – 2.4
    acres, 253 units, Land Value - $10,000,000 -
    $39,500 per unit/ $46 per BSF, F.A.R. – 2.06
                                                   7
  Pinellas and Orlando Condominium Analysis

Pinellas Condominium Land Sales:
• Land value per condo unit - $60,100 - $297,200
  (average of $172,800)
• Land value per BSF - $25-$119 (average of $72)
• Average F.A.R. - 3.15

Orlando Condominium Land Sales:
• Land value per hotel unit - $17,500 - $81,700
  (average of $41,900)
• Land value per BSF - $13-$55 (average of $28)
• Average F.A.R. – 3.09

                                                   8
Condominium Land Values in Pinellas
•   Sandpearl Residences - Clearwater Beach – 3.4 acres,
    119 units, Land Value - $15,000,000 - $126,100 per unit/
    $56 per BSF, F.A.R. – 1.82
•   Chalets on White Sands – Clearwater Beach – 0.3 acres,
    15 units, Land Value - $4,300,000 - $283,900 per unit/ $99
    per BSF, F.A.R. – 2.93
•   Clearwater Grande – Clearwater Beach – 1.5 acres, 68
    units, Land Value - $16,300,000 - $240,100 per unit/$100
    per BSF, F.A.R. – 2.5
•   Enchantment – Clearwater Beach – 1.4 acres, 90 units,
    Land Value - $26,750,000 - $297,200 per unit/ $119 per
    BSF, F.A.R. – 3.58
•   3805 Gulf Blvd – St. Pete Beach – 1.4 acres, 19 units,
    Land Value - $3,726,000 - $196,100 per unit
•   5301 Gulf Blvd – St. Pete Beach – 4.3 acres, 64 units,
    Land Value - $9,659,000 - $150,900 per unit
•   5353 Gulf Blvd – St. Pete Beach – 1.8 acres, 27 units,
    Land Value - $4,390,000 - $162,600 per unit


                                                                 9
Hotel and Condominium Relationship
• Supportable Land Value Per Unit
   • Hotel - $23,600
   • Condominium - $172,800
   • Need 5.5 – 7.5 hotel units per condominium unit
• Square Footage/F.A.R.
   • Hotel – 740 square feet
   • Condominium – 2,215 square feet
   • 3.0 disparity
• Supportable Land Value Per BSF
   • Hotel – $34
   • Condominium – $72
   • 2.1 disparity
• Square footage disparity multiplied by land value per BSF
  disparity - Need 6.3 hotel units per condominium unit


                                                              10
Contact Info




             Owen Beitsch
   Real Estate Research Consultants, Inc.
     518 S. Magnolia Ave., Orlando, FL 32801
            Tel: 407.843.5635
         OBeitsch@RERCInc.com

				
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