I’m board to be serving on the inaugural board of directors of NACHO. Dante Alexander, who started The National Association of Condo Hotel Owners, saw a need for better consumer and industry education about what a condo hotel IS, ISN’T and should be. In 2005, conference attendees (me included) were trumpeting statistics about 90,000+ new condo hotel units coming to market, that 78 million baby boomers were rushing to buy these condos, and that the sky was the limit for values. Although the ‘condo bubble’ may appear to have burst, and the ‘death of the condo hotel industry’ has been declared by some people, we believe, as with most statements from the bully-pulpit - they are incorrect.
Today there may still be as many as 100 condo hotel projects under construction or in full sales mode, and many are still selling units every weekend. Statistics I have heard from analysts of this industry claim that as many as 45,000 units are still coming to market beginning this fall, and from our own lending business perspective, the phone calls for loan requests are increasing.
Yes, the speculative condo bubble has burst, double digit appreciation rates are a thing of the past in many hot markets, but there are still second home buyers ‘looking for a deal’. Many of the planned condo hotel projects are still being built and will be traditional hotels, some have left the condo docs filed and in place in case the developer should choose to sell off some rooms in the future. Some condo hotels are going fractional or Private Residence Clubs (we like Helium Report for more info on this industry). Some condo hotel projects never should have been announced.
Even condo hotel industry pundit repeated the same thought “a good condo hotel must work as a good hotel first”, and many of the boom-era condo hotel announcements were on marginal projects in sub-marginal markets, where a hotel was not in demand or the quality of condo hotel would not have been economical. 
Condo hotels by design should attract a ’second home owner’, and be of a quality (4+ star) that would make someone want to pay a mortgage all year just to enjoy it for a few weeks or a month a year. If the hotel is not rare-air, why would a rich guy buy a condo there?
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