As Chicagoans experiment with the idea of buying hotel-condos, the Amalfi Hotel in River North is selling suites that it says are competitively priced compared to many of the luxury hotel-condos on the market.

The hotel, at 20 W Kinzie, is selling 213 units, ranging from one-bedrooms for $240,000 to $500,000 for a corner suite. All will be available for occupancy in May 2006, according to Bud Cataldo, CEO of Schaumburg-based Hostmark Hospitality Group, which is jointly developing the hotel with Shamrock Holdings of California.

In November 2005, selling agent Magellan Development Group was taking reservations and Cataldo said that so far potential buyers were warming to the idea of buying into the boutique hotel, which Hostmark has operated for a little over a year.

Hotel-condos, more common in New York and resort areas like Florida, are deeded units that can be bought and sold at any time. Owners can either live permanently in the condo and take advantage on the hotel services offered by the hotel on a fee-for-service basis, or elect to use the hotel for short periods of the year and for the remainder of the year offer the suite as a hotel room, earning a percentage of the profit.

A small handful of hotel-condos are currently in development in Chicago; many, such as billionaire businessman Donald Trump’s Trump International Hotel and Tower down the road at 401 N Wabash Ave, are selling units in the ultra-luxury price range, and also offering regular residential units.

The Amalfi, which is offering solely hotel-condo units, should stand out in the small but growing market place because of its reasonable prices and the fact that owners won’t have to wait several years to take occupancy, unlike at buildings still in the preconstruction phase, because The Amalfi is already standing, Cataldo says.

What's in it for you?

So who are the likely buyers and what do they get for their money?

Cataldo expects suburban empty nesters looking for a part time in-town residence will take up the biggest share of the market, and predicts about 90 percent of them will elect to take part in the voluntary rental program, which offers buyers the option of staying at their residence for 14 days or 29 days out of the year.

“Then there are law firms looking at purchasing a unit in close proximity to the office for their employees or guests,” says Cataldo.

Hotel-condo owners decide ahead of time the days they wish to take up residence, and are able to keep their belongings in complimentary storage when they are not there, Cataldo says. If they decide to make a spontaneous visit and their hotel-condo is being used as a hotel room they will be offered use of the next similar room available, he says.

The one to two-bedroom furnished rooms and suites have “a residential flavor” and come complete with granite countertops, double-headed showers and hairdryers in the bathroom, pre-wired Internet access, VCRs and complimentary access to a fully stocked video library.

The amenities buyers at the Amalfi can take advantage of are “four and a half stars”, according to Cataldo. They include 24-hour front desk, concierge, complimentary breakfast and daily reception complete with appetizers and drinks in the hotel’s clubroom, a fitness room, business center and pay-per-use room service. The building houses the upscale eatery Keefer’s, and hotel-condo owners also have charge privileges at steakhouse Harry Caray’s, across the street.

River North is dynamic

The River North location is “really the action center of the city today,” says Cataldo, describing the much-vaunted Gold Coast as “more residential” and pointing to The Amalfi’s proximity to bars, restaurants, the new Museum of Broadcast Communications coming to State and Kinzie in 2006, and the short walk to Michigan Avenue. All these facilities would generate hotel customers, he says.

Buyers can expect city views to the north, south and west, taking in landmarks such as the House of Blues and Marina City.

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