How to avoid getting caught up in the luxury hotel craze
It’s not just the high-end luxury hotel industry that’s in the frenzy for new hotels, with luxury ballrooms on the rise in many places.
It could be that the frenzy is all a ruse to make a lot of money in the meantime, but it’s also possible that the demand for these rooms is oversold and is actually causing the market to tank.
In a recent interview with the Huffington Post, luxury ballroom specialist and co-owner of the luxury ball rooms at the Royal Park hotel, David Smith, said he’s not surprised by the surge of luxury ball hotels in recent years.
“People are looking for a place to live in the summer, and then it’s a bit of a boom,” Smith said.
“It’s a little bit of an overreaction to the hype, but I think it’s fair to say it’s happening.
There are plenty of luxury properties in the US right now that are on the market that have oversold their supply and are now trying to find a new buyer.
If you go to a local retailer like Target or Costco and you see the number of rooms they’re selling, you’re thinking, well, that’s not the right time to buy.
But if you go through the same channels, the number is going up every year.”
We have a lot more rooms than we have supply.
I think this is a real problem, but the way the luxury market is being set up it’s going to take some time to work out.
We have to find ways to keep people in their homes.
That’s the hard part.
“Smith is not the only one who’s noticed the luxury hotels market is on the upswing, with several high-profile luxury ball room operators recently taking over and selling out of their properties.
In August, Hilton announced it would sell out of its ballrooms at the Sheraton and the Four Seasons hotels.
The hotel chain also sold out its luxury ball and bath suites at the Four Winds in October.
Then in September, Royal Park luxury ball manager Dan Hoeber said his company was selling its ballroom suites at three locations in Las Vegas.
So far, he’s sold out at the Hyatt Regency in Las Angeles, the Palazzo at the Beverly Hilton Hotel and the Wynn Resorts Center at the Wynwood Resort and Casino in Las Palmas, California.
Hoeber says he expects luxury ball-room demand to increase at the rate of 10 to 20 per cent a year.
But as we’ve seen before, luxury hotels are only the tip of the iceberg.
According to the National Association of Realtors (NAR), the luxury rental market in the United States has grown by nearly 30 per cent in the last five years.
That includes the number and size of luxury apartments in the nation.
The luxury rental industry, in the hands of real estate brokers, is the biggest source of profit for luxury hotel operators, according to the NAR.
NAR’s chief economist, Jeff Anderson, said there are over 1,000 luxury rental companies operating in the U.S., with about 70 per cent of those companies in California, Florida, Texas and Florida.
However, while many of those same companies are also in the process of flipping their properties, many of them are still in business.”
The market is in a boom phase,” Anderson said.
And with the luxury housing market heating up in many cities, it is important to understand that there’s more going on than just a booming luxury market.
Anderson said there is a lot at play behind the luxury-rental bubble.
A lot of the rental growth in the city is due to the demand from millennials, he said.
It’s a demographic that is coming of age in the age of mass transit and public transportation.
While millennials have been in the workforce longer, it’s the number who are buying properties and using them as homes, Anderson said, and are spending less time in their cars and more time living in them.
As for the other portion of the equation, millennials have a higher tolerance for luxury apartments than their parents, Anderson says.
And that, in turn, has led to the boom in luxury ball rental properties in cities like Los Angeles and New York.
When it comes to luxury ball rentals, there are two major reasons for the boom, Anderson explains.
One is because they have the most amenities in terms of space, he says.
The other is that millennials want to live closer to their jobs.
That’s where the luxury properties come in.
For many, a luxury apartment in the suburbs or in a more affordable location is just not enough to live independently, so they’re looking for places that offer amenities, such as outdoor spaces, fitness facilities and kitchens, and that allows them to spend less time driving to work or spending more time with their families