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1618-1 Versailles giving up as Hotel , going Condo DATE: Thursday, August 25, 1983 EDITION: NEIGHBORS SECTION: NEIGHBORS MB PAGE: 2 LENGTH: 53 lines ILLUSTRATION: photo: Versailles Hotel SOURCE/CREDIT LINE: SUSAN FALUDI Herald Staff Writer VERSAILLES GIVING UP AS HOTEL, GOING CONDO . After having 50-per-cent occupancy rates and a summer season so poor it wasn't worth opening the doors, the Versailles Hotel has had enough. The art deco oceanfront hotel, which once drew countless vacationers to its famous comedy club and dances under the stars, is going condo this month. Slightly less than $30,000 will buy a one-room apartment with standard hotel drapes, a chest of drawers, two beds, a refrigerator and a color television. "Adverse economic factors" forced the Versailles to close for the first time in April, general manager Milt Tobin said. When the hotel could manage only a brief opening for the July 4th weekend and the Elks convention in August, management thought that the hotel should try something more profitable. The Versailles, 3425 Collins Ave., had already attempted to convert to condominiums last fall but "recalled the deal because of basic restructuring problems, " Tobin said. But after a tough summer, the hotel's owners decided to convert for real, he said. About 30 condominiums in the 274-room hotel have been sold in the past two weeks, mostly to Dade residents who want to use them as vacation homes. The hotel will reopen by Thanksgiving and continue to take regular hotel guests in about 60 per cent of the rooms. But eventually all the rooms will become condos. The 1940 art deco hotel, with its columns, sweeping staircase and spacious lobby, once drew hundreds of Beach visitors to watch top comics at the Alan Gale Comedy Club and to its night dances by the pool with the Pupi Campo Band. But those days ended in the 1950s, Tobin said. "People have to face facts, " said Bennett( Lifter, who is one of three Versailles owners. "You can't survive on three months of business in the winter. Unless they come up with an attraction like Disney World or some kind of major entertaintment or even gambling here, you will be seeing a lot of hotels going condo." Versailles management is not the first to come to that conclusion. The Carillon Hotel, which closed in May, will reopen before the winter season with apartments to lease. And eventually it will convert to time-share condominiums. The broker the Versailles retained to sell its condominiums has already converted three Collins Avenue motels in Sunny Isles to condos and has a few others in the works. "I'm telling you, " said Warren Rapkin of Condo-Plan Sales Corp., the broker for the Versailles, "The concept is here, and I think the reason is that Miami Beach is not a teriffic place to come to any more. Business is not so good. Hotel owners don't have a choice. " KEYWORDS: VERSAILLES-HOTEL PROFILE TAG: 8303080375 :4