We bought a unit in Hollywood, Florida. Originally the project was intended to be run as a hotel, by an internationally known hotel chain, but upon completion the the group which was supposed to run the hotel aspect withdrew or was dropped (project was behind by 4 years at least, which may have played a role). Now a different significantly less known company will be running the hotel aspect of the building.
In the original deal, the company running the hotel was supposed to get 40% of the proceeds from the unit. Now in the new set up, they are asking for 60%.
In the meantime, the option of listing on platforms like Airbnb and VRBO has become a much more attractive and viable option. One which considering the circumstances we would like to pursue.
The project management now seem make it more and more difficult to actually choose for that option, even though we are within our rights.
One of the tactics we think is being employed is to require from the Unit owners a 5 million dollar liability insurance to discourage not becoming part of the hotel program.
We learnt from one insurance company operating in the area, that a normal insurance policy would be closer 1 million dollars. (the value of our unit is around half a million)
Any opinions on the requiring of such a large insurance policy?
Also we would like to remark that we asked the project management, what the liability policy looks like for the hotel. In other words, if something bad happens to our unit, because of a mishap on their part, up to what level are they/hotel insured. After making the request of this information several times, we still have not gotten a response.
