| Many people dream of owning a vacation home. But | | | | resorts around the world. |
| often concerns about maintaining it, renting it out in | | | | The properties often feature four- or five-star |
| the off-season, or even justifying the expense when | | | | amenities, ranging from full-service spas and fitness |
| it's only to be used for a couple weeks of the year | | | | centers to fully-equipped business centers and |
| keep them from making the dream a reality. | | | | fine-dining restaurants. They also come with |
| Now condo hotels, an innovative type of vacation | | | | exceptional hotel services like concierge, valet and |
| home ownership, provide a welcome solution to all | | | | room service. |
| these problems. Also known as condotels or | | | | With condo hotels, owners reap the rewards of |
| aparthotels, condo hotels have been growing in | | | | condo ownership while enjoying the privileges of a |
| popularity as a hassle-free approach to owning a | | | | full-service hotel. |
| luxurious second home in a great vacation destination | | | | Most condo hotels are operated by big-brand |
| like Miami, Orlando, Las Vegas, the Caribbean and | | | | management companies such as Hyatt, Four |
| Dubai. | | | | Seasons, Ritz-Carlton, Starwood, Hilton, Trump, |
| Condo hotel buyers purchase an actual condominium | | | | InterContinental and Rosewood. Typically they are |
| unit in an upscale hotel or resort. The property | | | | luxury hotels located on prime land, overlooking the |
| functions as a full-service hotel, and owners have | | | | ocean or a golf course, near popular theme parks, or |
| access to all facilities, amenities and services just like | | | | in the heart of a booming downtown. |
| hotel guests. | | | | Condo hotel units range from studios and full-size |
| They receive a deed to their unit and can use their | | | | apartments to luxurious penthouses and villas. Prices |
| vacation home when they want. When not in | | | | for these homes range from $250,000 to over one |
| residence, they can place their unit into the hotel's | | | | million for top properties. |
| rental program and share in the revenue it generates. | | | | What makes the condo hotel concept so appealing? |
| Like most real estate investments, the owner can | | | | When owners are not using their condo hotel unit, |
| also sell his condo hotel unit at any time and may | | | | they have the option of placing it into the hotel's |
| make a profit on its appreciated value. | | | | rental program. They receive 40%-60% of the |
| Young professionals, baby boomers and seniors alike | | | | revenue their unit generates (it varies by property), |
| are just beginning to discover the benefits of owning | | | | with the balance going to the hotel operator. The |
| a condo hotel unit. They appreciate the hassle-free | | | | revenue generated helps offset the costs of owning |
| nature of condo hotels as a second home in which a | | | | a holiday home. |
| professional management company handles | | | | While many hotel operators don't guarantee the |
| everything from property maintenance to finding | | | | rental of the condo, by capitalizing on the hotel's |
| hotel guests to rent the units. They also consider | | | | brand name, strong sales and marketing capabilities, |
| condo hotels a means to diversify their investments. | | | | centralized reservation system and management |
| Condo hotels differ from timeshares in a number of | | | | expertise, owners typically receive a higher level of |
| ways. With timeshares, buyers pay only for the right | | | | rental income than they would from a traditional |
| to use the property for a set amount of time each | | | | vacation home. |
| year, usually a single week. They don't own the title | | | | More importantly, ownership is 100 percent |
| to the property, and they do not receive any rent | | | | hassle-free, as the hotel operator takes care of |
| revenue for the weeks they're not in residence. | | | | finding hotel guests and maintaining the unit as well as |
| Condo hotel owners can use their condos when they | | | | managing the property's many facilities. |
| want throughout the year, within the guidelines of | | | | How are the ownership expenses split? As part of |
| the individual development. They receive a | | | | the rental agreement, the hotel pays for most |
| percentage of any revenue their unit generates | | | | operating expenses such as housekeeping, |
| when they're not there and the unit is rented out to | | | | administration, sales and marketing. The condo hotel |
| hotel guests. | | | | owner typically pays for real estate taxes, insurance |
| Timeshares traditionally diminish in value over time, | | | | and capital improvements. The rental revenue that |
| rather than appreciate. While the history of condo | | | | owners receive helps defray these expenses and, in |
| hotel resales is rather limited, they are seen as an | | | | some cases, provides additional income. |
| appreciating asset. | | | | While developers primarily sell their condo hotel units |
| How do condo hotels differ from owning a traditional | | | | as a lifestyle and vacation home alternative, many |
| single family house or condominium? Consumers who | | | | buyers see merit in the condo hotel concept as an |
| purchase a regular condominium pay property taxes, | | | | investment tool. They say it gives them the best of |
| insurance and maintenance fees, but typically don't | | | | both worlds. They can enjoy all of the benefits of |
| have access to hotel-type amenities. | | | | vacationing in a first-class hotel or resort while they |
| Condo hotels, on the other hand, are not your | | | | own a property that has potential to appreciate. It's |
| standard second home. They are beautifully furnished | | | | the ultimate second home and real estate investment |
| suites in some of the most prestigious hotels and | | | | combined into one! |