Seven Questions You Should Ask When Buying a Condo Hotel Unit

You may have heard all the buzz about the newestHilton, Starwood or Trump is likely to generate more
type of vacation home investment, condo hotels.revenue than a non-brand because it can charge
These are condominiums located in four- andhigher room rates and benefit from international
five-star hotels in cities like Miami, Orlando, Las Vegasadvertising and a centralized reservation system.
and Chicago. Owners use their condos when they'd4. Will the condo hotel receive traffic from any
like. When not using their unit, they can place it in thenearby attractions or entertainment venues?
hotel's rental program and receive a percentage ofA condo hotel that is near a convention center, a
the revenue it generates.theme park or cruise port will benefit from proximity
How do you choose a condo hotel unit that meetsto these high-traffic venues.
your desire for a vacation home and is also likely to5. Does the condo hotel have any on-site amenities
produce a healthy revenue and appreciate down thethat will draw guests such as a well-known health
road? Consider the following seven questions whenclub, spa, fine dining restaurant or golf course?
evaluating a condo hotels:You'll want to choose a condo hotel that has
1. Is a condo hotel right for you?amenities you'll enjoy using and also are a draw to
Condo hotels are not your typical second homes.attract hotel guests.
They are fabulously-furnished condominium suites in6. Does the individual unit that you're considering in a
some of the most famous hotels and resorts aroundcondo hotel meet your needs?
the country. The properties are usually large, high-rise,Does it have enough bedrooms, enough square
luxury hotels and come with premium amenities likefootage? Does it have a kitchen? (Some do, some
valet, concierge and maid service. Prices can rangedon't.) Does it offer an appealing view? Is it furnished
from $250,000 to over $1 million for prime properties.to meet your tastes? Does it offer any owner
2. Is the condo hotel well-located?storage?
Consider whether the property is located in a popular7. Will the condo hotel unit appreciate?
vacation destination, one that is likely to do a healthyWhile personal enjoyment should be your primary
tourist or business trade regardless of economicreason for considering a condo hotel purchase, it's
factors.certainly worth thinking about whether the property
Also, you must be sure you yourself like the location.you want has good appreciation potential.
Does it offer you the ocean view or golf courseLook at surrounding properties and area appreciation
access you always dreamed about for your vacationrates. Does the condo hotel have lots of
home? If you'll be flying to this vacation home, howcompetition? Is it different or better than area
close is it to a major airport?properties? How has the demand been since the
3. Does the condo hotel have a major franchise?property first came on the market?
The key to a successful condo hotel investment isA realtor who specializes in condo hotels and is
the hotel operator. The better the operator and thefamiliar with the area in which you're looking can
franchise, the more likely the success of theoften help you determine if the condo hotel you're
property.considering has good appreciation potential.
A condo hotel with a name brand like Ritz-Carlton,