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Introduction to Condo Hotels

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    Condo hotels are one of the most exciting segments of the real estate market. It seems like every month, another big brand like Trump or Ritz Carlton is developing a new condo hotel in a major resort or urban destination.

    A condo hotel operates just like any hotel you might be familiar with. The only difference is that each room is individually owned. The paying hotel guest would have no idea that the hotel is a condo hotel. From appearances sake, there is no difference.

    As an owner, you take fee simple title. So, you own it outright. Just like you would own the home you currently reside in. The difference is that you would have a highly skilled management team overseeing your property and handling all aspects of the daily operation and rental. Condo hotels are designed for 100% hassle free ownership.

    Of course, as an owner of the condo hotel, your visit would likely entitle you to various benefits and first in line privileges not made available to the average guest. You would be entitled to a truly remarkable visit.

    Some have suggested that condo hotels are the best area of real estate to get involved with, short of commercial development. To back up this statement, they point to hard evidence that is readily available – historical appreciation comparisons. It's not uncommon to find the property values of branded condo hotels appreciating at a greater rate than the traditional real estate in the same market.

    One of the few downsides to owning a condo hotel is that most are not meant for residency. A lot of condo hotels have usage restrictions that limit you to a couple of months of total usage throughout the year. With that said, most people do not buy condo hotels with the idea of residency in mind, so this restriction rarely affects any potential buyer.

    Extra Reading:

    The Typical Person who owns a Condo Hotel

    Condo Hotels vs. Condominiums

    Financial Benefits of Owning a Condo Hotel

    Luxury Hotel Brands are Increasingly Involved with Condo Hotels

    World Class Management Teams Oversee your Condo Hotel

    How Condo Hotels are Sold

    Typical Costs of Purchasing a Condo Hotel Unit

    Costs Associated with Owning a Condo Hotel

    Services Covered by Home Owner Association (HOA) Dues

    The Locations that Condo Hotels can be Found In

    Benefits of Owning Pre-Construction Condo Hotels

    Drawbacks to Owning a Condo Hotel

    How Condo Hotel Rental Revenue is Split

    Will a Condo Hotel Cash Flow

    Deposits Required to Secure a Pre Construction Condo Hotel Purchase

    By Diane Tuman

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    • Last edited October 12 2012
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