Shangri-La Chicago
A UNITE HERE Local 1 Investment Alert

The fashionable investments known as condominium hotels have come to Chicago. One recent example is the planned, 90-story Shangri-La Hotel. Yet how much do investors really know about this class of real estate?
     This website isolates some of the concerns investors will face when assessing the value of a unit in the hotel. Each of the hotel rooms is to be individually sold to investors, who may occupy them for a limited time during the year, and then collect rent on their room when they are not using it. Revenue from rental of the hotel room will ostensibly cover the costs of ownership.¹ 
     Within this website, we raise the following questions in regard to the Shangri-La Chicago condominium hotel::

• Are Shangri-La’s hotel condominiums going to appreciate in value sufficiently
  to justify the higher price tag?
• How will Shangri-La perform in a more crowded luxury market?
• What will be the operating costs of the hotel?  How much of these costs will
  investors have to bear?   
• Who would cover losses by Shangri-La? How much could investors owe if the
  hotel loses money?
• What capital reinvestment will be required, and when?
• Who will negotiate employee affairs?  What is the hotel’s history regarding
  labor relations?

     This website seeks to arm investors with additional information so that they can objectively decide whether the purchase of a Shangri-La condominium hotel is right for them.

Notes