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Daytona Condo-Hotels in Numbers

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

Daytona Condo-Hotels in Numbers

There are 14 condo-hotels with 2,448 condo-hotel in Daytona Beach area.

A brief description of a typical condo-hotel would be a property built and operated as a hotel, which at some point converted it into condominiums with the goal of selling units to individual owners, however, the use is a hotel.

Condominium means ownership, but usage is a hotel. So, they differ from residential (apartment condominiums) in how the owners may use it.

Condo-hotels are ideally for people who come here once or few times a year and rent their units the rest of the time.

In high market it is a viable alternative to more expensive oceanfront condos. In Buyers’ market buying a residential condo as a vacation property/second home may be a better idea.

Here is area condo-hotels’ statistical data for the last 6 years. Probably the most telling parameter here is Price Per SF (last column). It went up a little over 10%.

Condo-Hotel Statistical Data

Condo-Hotel Stats

Daytona condo-hotels in numbers

If you compare 2016 to Active Listing as of today, it comes to 22.62%. Shouldn’t this be a reason for seller to get hyped? Probably not yet. First, Active Listings mean asking prices, while data for 2016 shows sold prices.

We all know that there is difference between asking prices and sold prices. Yes, on average it, of course, will not be 22.62%, so there will be some increase.

However, if you look at Average DOM (Days on the Market), today it is 243 days – the highest number in all years from 2011. And it is significantly higher, which is the indication of a slow market. There are simply not enough buyers and units are waiting on average 8 months.

It might result in lower prices as we go, if the pace does not pick up. At the same time we only have 137 units for sale, which is the lowest number in all these years except for 2011. Yes in 2011 we had distressed market. It is different now…

Could the market for residential condos affect condo-hotels? Yes, if the prices for residential condos are still low, they may be a safer and steadier choice for buyers.
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Jon Zolsky is a broker/owner of Daytona Condo Realty

Comments (6)

Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jon loved this market report, the only difference in your market and mine you have one or two zeros less in the price point, the give away is the Price Per Square foot in my market is starting around $800 and goes up, Endre

May 10, 2017 11:15 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Endre Barath, Jr. - I already told you tht you are like on another planet... or maybe we are on another planet :)

May 11, 2017 04:36 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Jon Zolsky, Daytona Beach, FL the concept of condo conversion with hotels and motels was a common occurrence on Cape Cod in MA.... when the market was soaring, tree houses would sell....now, those who have these units are dying on the vine....the money isn't there for upkeep and they're tough to move....

May 11, 2017 04:41 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Barbara Todaro - in our area some were converted in high market, but many were converted simply because hotel owners could not sell a hotel, so chopping it in pieces was easier. But they are dubious investments for sure

May 11, 2017 05:16 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Jon - It has been interesting to read your blog posts about condo-hotels, a market segment that doesn't exist here. Thanks for the numbers - they provide some useful tools for understanding how it all works.

May 11, 2017 11:10 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Dick Greenberg - it is a tricky segment. When the prices are low, it does not seem bad. But imagine the prices going up 3 times, and the performance does not change a bit, and then it is a bigger problem.

It is because the values for condos and what people are willing to pay for a hotel room are very different things. While they can pay $150K for a hotel room lured by the location and the view, whomever you rent to would not be willing to pay triple for the night stay.

May 11, 2017 01:14 PM