What's a Phase 2 Condo Hotel?
If you're looking at the various types of condos available in Whistler, it can be really confusing. Today, we're going to give you a full understanding of what hotel condos and Whistler are all about. Now let's get into it.
Phase 2 is a restrictive covenant placed on the title of these condo hotel properties by the resort municipality of Whistler, which restricts the owner use of your condo to 28 days in the winter and 28 days in the summer for a maximum total of 56 days per year.
Now when you're not using it, the hotel manages the rentals and gives you a share of the revenue and more on that later. You don't have to use all 56 days you can use a portion of that or none at all. It's totally your choice. Now this is different from all the rest of the nightly rentals own properties in Whistler village black on bench lands and at Whistler Creekside. Those condos and townhomes are unlimited owner use and are called Phase 1 zoned properties, those properties can be a better fit. If you want more than 56 days per year personally use more rental flexibility, and a larger condo or townhome that's not a hotel room.
These Phase 2 hotels are in excellent locations as they're peppered throughout Whistler Village and at Blackcomb and generally have ideal access to a night out on the town and are all within easy walking distance to the lifts. But here's the thing, you need to be okay with owning in a hotel. That usually means the suites are smaller hotel rooms and may have limited cooking space with small kitchenettes. And in some cases, like at The Four Seasons Resort, there are no kitchens at all, so you can't even make a meal. But a few buildings like the Blackcomb Springs Suites, The Cascade Lodge, or The Delta Suites have full kitchens. But by and large, you own a small hotel room with limited space, where all these fees to condo hotel buildings and Whistler.
So the basics of it are that the revenue is pooled for all the suites in the building, and then share it out to each owner based on the units interest upon destruction or IUD number or another variant of that is called the Unit Entitlement Number. So if you own the two bedroom penthouse at the west end, with that killer view of the ski slope, you'll have a larger IUD number and therefore a larger revenue share than a studio suite on the ground floor facing the forest with a smaller IUD number. In a normal year over the past five to 10 years, your ROI would end up around the 6 to 8% level if you own in a premium high end fees to hotel, like the Westin, the Pan Pacific mountain side or the four seasons.
And you'd have perhaps a three to 4% ROI and a lesser level Phase 2 building like the Whistler Peak Lodge or The Pinnacle International. And these numbers will all vary based on whether you use your suite personally a lot. Or if you just leave it in the revenue pool and never use it. And some of the hotels structure their revenue sharing and payouts differently. So contact me at the details below for your specific questions about that.
What about the expenses? Well, each month you'll get a statement from the hotel management that outlines the gross rental income and then there'll be various line items such as rental management company fee, which depending on the hotel can be as high as 40% of the gross revenue or beyond.