Falor Companies Leads Condo-Hotel Market

The Falor Companies, a hospitality
firm with offices in Miami and Chicago, has positioned itself as the leader
in the condo-hotel industry with a large portfolio of acquisitions currently
totaling 15 properties.  The company attributes their rapid growth to a $25
million investment from The Mitchell Companies, a Miami-based commercial
property owner.“The key to our rapid success comes as a result of the significant
cash investment from The Mitchell Companies,” said Robert Falor, president
and CEO of The Falor Companies.  “With the cash infusion, we have the
advantage of being able to preemptively acquire hotel assets for condo-hotel
conversions.”
      Two years ago as the condo-hotel industry trend began, Falor
realized that the key to success was to have the funding to be able to
initiate hotel purchases before the property goes to market.
According to Guy Mitchell, president of The Mitchell Companies, Falor found
a niche and developed a unique business plan with impressive turnaround
times.  “I invested during the inception, which has proven to be a
profitable venture as The Falor Companies has implemented an aggressive
growth strategy with huge success.”
      The Mitchell Companies has been in business for more than 20 years
with ownership of numerous multifamily apartment buildings, as well as
commercial properties including shopping centers, office buildings and
commercial warehouses.
      “My initial investment was just the right support to get the company
moving and ignite interest from other institutional investors,” said
Mitchell.  “The company has now been able to move forward in joint ventures
with Colony Capital, LLC and Oaktree Capital.”  Additionally, The Falor
Companies has institutional equity commitments in excess of $400 million to
use moving forward with future acquisitions.
      The Falor Companies has created an impressive record of condo
conversion sales in the last six months.  In South Florida alone, their
condo-hotel projects include joint ventures with Colony Capital, LLC in the
purchase of the Mayfair House Hotel in Coconut Grove and Cheeca Lodge & Spa
in Islamorada with Cheeca Holdings, LLC.  Individually, the company recently
acquired two South Beach landmarks, the Breakwater and Edison hotels, and
plan to convert the two properties into one, 113-unit resort-style
condo-hotel.  Their purchase of the Tides on South Beach is scheduled to
close in mid-November.
      In addition to great success in the South Florida market, two
recent purchases in Chicago have also been profitable ventures - the Century
Building in Chicago’s Loop at 202 South State Street and the Hyatt Printers
Row in Chicago, which sold out Phase I in less than three weeks.
      With plans to acquire properties across the nation in major markets
including Las Vegas, New York, Boston, Washington D.C. and throughout
California, as well as additional properties in Chicago and Florida, The
Falor Companies will have closed deals in excess of $1.2 billion in hotel
acquisitions by the end of 2005.  All purchases are slated for full or
partial conversion to condo-hotel.
      As an asset management firm, The Falor Companies turned its
attention toward acquisitions and focused on condo-hotel conversions as
their main growth vehicle at a time when new construction projects proved to
be difficult.  While other developers project their new-build condo-hotels
to open in two to three years, The Falor Companies already have condo-hotels
open, operating and on the market.
      “With the stock market so volatile, many people are reallocating
their priorities,” said Falor.  “We are encouraged by the number of buyers
who have recognized the value of a hotel-condominium unit.  They are
purchasing a unit that has value while they can enjoy a vacation home with
luxury amenities and services.”
      The Falor Companies are known for selecting well-known hotels in
desirable locations and renovating them to meet current luxury standards.
Once renovations are complete, the company converts the property to a
condo-hotel and brings in a well known, luxury hotel operator to manage the
hotel.  Currently, Kor Hotel Group and Kimpton Hotels & Restaurants have
contracts to manage several of their properties.
      According to Falor, the key to a successful condo-hotel is
comprised of three variables, “In order to have a successful and profitable
condo-hotel, we make sure to select a property in a prime location within
that city.  We offer luxury amenities and services and we bring in a
high-end hotel operator.  Without these components and highly desirable
price points, a condo-hotel may have trouble selling out.”  Prices for a
Falor property generally start in the low $200,000’s.
      The Falor Companies is a diversified hospitality firm specializing
in development and asset management. The company has established itself as a
leading entity in the United States involved in the acquisition of select
resort and urban hotels for the conversion to condo-hotels.  For more
information, log on to www.falorcompanies.com.
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