Q. What is a hotel/condo?

A. A hotel that sells its rooms to individuals as condominiums and concurrently runs as a hotel

Q. How does a hotel/condo differ from a Timeshare?

A. Owners of a timeshare owns a pre-arranged timeslot for use of property that is owned by a property management group. Timeshare is not ownership of real property and so normal tax benefits associated with property ownership does not apply to timeshare. The owner of a hotel/condo unit owns the real property and associated tax benefits apply.

Q. Can I live in a hotel/condo year round?

A. Yes you can live in a hotel/condo year round. However most hotel/condo owners place their unit in a property management rental pool in order to rent their room like a hotel room. Rooms placed in the rental program are able to participate in revenues generated from the rental of their room. Rooms not in the rental pool are not considered part of the operational aspect of the hotel and therefore the owners are responsible for their own laundry, daily cleaning and will not participate in room rental revenue sharing.

Q. How does a hotel/condo differ from a typical condominium?

A. Hotel/condo owners do not personalize their rooms. A typical condominium is furnished according to the owners personal preferences whereas the furnishings for a hotel/condo are chosen by the hotel’s management team so that the room is an integral part of the hotel.

A typical condo may have covenants that prohibits room rentals whereas the hotel/condo continues daily hotel operations throughout the year. Hotel/condos that are placed in the rental program are rented according to an impartial revolving system unless a guest requests a specific room.

Q. How much revenue can I expect back?

 A. Your rental revenue depends on three factors:

1. The size of your unit. Generally speaking the larger the unit, the more revenue you can expect;
2. The number of nights that you make your room available to the hotel for rental; and
3. The success of our overall marketing initiatives. Initially, as a new hotel, it will take longer and cost more money to educate guests about the hotel benefits. As our marketing initiatives gain acceptance, more guests will visit Hotel and your proportional revenue will increase. (Note that the marketing is paid from the management fee, not your revenue split).

Q. Does this hotel/condo have a Homeowners Association (HOA)?

A. This hotel will have an independent strata council, which each unit member is automatically a member of. This council has one permanent seat on the Los Suenos Home Owners Association, which is responsible for the costs of maintaining and upgrading the building and common areas. The strata council determines the owner’s monthly assessment, utilities and maintenance costs.

Q. Who manages the property?

 A. The Hotel will be managed by an affiliate of El Faro Investments SA.

Q. Can I sell my hotel/condo unit?

A. Yes. You own it and it is yours to sell.

Q. If my unit appreciates in value and I sell my condo, do I have to share the profits with the hotel or its management?

 A. No. You are the sole owner of the unit and any gains or losses are yours.