Niche Biz: Renting Hotel Rooms as Condos

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If you’re Las Vegas, and you have thousands of underused hotel/condo rooms because of the economic downturn, what do you do with them? If you’re Candace Bailey of Luxury Suites International, you profit.

Her company serves condo owners looking to save their investments and hotels needing cash flow on empty rooms by providing a hybrid service of property management and hotel marketing operations.

“I saw a niche for capturing the market,” Bailey said inside a one-bedroom, 874-square-foot unit at Signature’s Tower 2. “Hotels can only rent for 29 nights. We can rent as long as we want.”

Her niche is long term rentals.

The average condo-hotel rental rate in Las Vegas last year was $114 a night and $1,900 a month, Bailey said. After 30 days, guests don’t pay the 12.7 percent hotel room tax. Rental rates have increased 13 percent this year and occupancy is up to 91 percent, she said.

“From March until October, we’re booked solid,” she said. “If it’s short-term, it’s vacationers, so our peak is the summer. Longer-term is poker players. They stay an average of 76 nights.

The Las Vegas Business Press has more.

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