Ritz Carlton Residence in Waikiki

Honolulu, Hawaii
Buying & Selling Real Estate
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Ritz Carlton Residence in Waikiki

Ken Li
Wholesaler · Oakland, CA · Member since 2016 · 2 posts · 1 vote

Hi 

Do anyone have any advice or information regarding investing in buying a luxury hotel room residency for short term rental?

I am looking at Ritz Carlton in Waikiki. I don't know how to play this as there is no listings on airbnb and only seemed to be hotel listings from other travel sites. I assume that if I buy the hotel room, Ritz Carlton will have to manage it and it will charge a huge management fee for it. Wondering if any one has experience playing in these type of properties.

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
Quote from @Ken Li:

Hi 

Do anyone have any advice or information regarding investing in buying a luxury hotel room residency for short term rental?

I am looking at Ritz Carlton in Waikiki. I don't know how to play this as there is no listings on airbnb and only seemed to be hotel listings from other travel sites. I assume that if I buy the hotel room, Ritz Carlton will have to manage it and it will charge a huge management fee for it. Wondering if any one has experience playing in these type of properties.


 Yes and you will not make money on these because of the yearly fees. We own one in St Thomas but we bought it for use. We do rent out some weeks but not for profit but to cover the fees. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y
    Quote from @Ken Li:

    Hi 

    Do anyone have any advice or information regarding investing in buying a luxury hotel room residency for short term rental?

    I am looking at Ritz Carlton in Waikiki. I don't know how to play this as there is no listings on airbnb and only seemed to be hotel listings from other travel sites. I assume that if I buy the hotel room, Ritz Carlton will have to manage it and it will charge a huge management fee for it. Wondering if any one has experience playing in these type of properties.


     Yes and you will not make money on these because of the yearly fees. We own one in St Thomas but we bought it for use. We do rent out some weeks but not for profit but to cover the fees. 

    7e investments53 Reviews
    WebsiteView Page
    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Ken Li:

    Hi 

    Do anyone have any advice or information regarding investing in buying a luxury hotel room residency for short term rental?

    I am looking at Ritz Carlton in Waikiki. I don't know how to play this as there is no listings on airbnb and only seemed to be hotel listings from other travel sites. I assume that if I buy the hotel room, Ritz Carlton will have to manage it and it will charge a huge management fee for it. Wondering if any one has experience playing in these type of properties.


     This is common in Waikiki, you could ask the income statement from the seller agent but I bet you would not make money. 

    You could make money in Waiki paying 50-70% down with low priced Fee Simple and HOA is below $800.

    Parking is also another hassle there.

    Appreciation is also not good. If there's time machine I would invest in the past for condo in Maui rather than condo in Waikiki.

    1Reply
  • Mark Waite
    Real Estate Broker · Wailea, HI · Member since 2016 · 134 posts · 77 votes
    3y

    If Waikiki is anything like the Ritz in Kapalua, you'll have to use their property management at a fee of 50% plus.

    Agree with @Carlos Ptriawan that you're better off in one of the luxury resort districts on Maui. Prices are lower and you can actually make money! 

    @Ken Li DM me if you want to chat further.

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