To understand why the condo hotel concept has so much appeal to families, baby boomers, seniors and real estate investors alike, consider these benefits:
1. You can own a piece of a world-class property. Most condo hotels are of four- to five-star quality.
2. You’ll have a vacation home in a fantastic destination. Most condo hotels are located in premium locales – on the beach, near golf courses, next to ski slopes and in bustling downtowns. Miami Beach, Fort Lauderdale, Orlando, Myrtle Beach, Las Vegas, Chicago and the Bahamas are some of the most popular condo hotel locations.
3. Use your vacation home when you want. Flexibility in use means you always have a place to “get away from it all.” When you’re not using your vacation home, place it in the rental program.
4. A professional management company will take care of all maintenance and operational issues. Most condo hotels are managed by premier hospitality firms, often the biggest names in the business, Ritz-Carlton, Trump International, Hilton, Starwood and Hyatt, to name a few.
5. You receive approximately half of the rent revenue your condo hotel unit generates when you’re not using it. The management company takes care of renting your condo for you. The revenue helps offset your costs of ownership. Plus, most management companies have sophisticated reservation systems and invest in professional marketing, enabling them to keep your unit rented far more than you likely could on your own.
6. The management company deals with the guests. Part of the hassle-free nature of condo hotel ownership is that the management company handles everything regarding guests, from attracting them to checking them in and out of the hotel and solving any problems that arise during their stay.
7. You’ll have access to luxury hotel services. Unlike a single-family home, in a condo hotel vacation home, you can take advantage of all the perks of the hotel such as a brand-name spa like Canyon Ranch or Elizabeth Arden Red Door, concierge, room service, fitness facilities, pool, fine dining restaurant and more.
8. Share your condo hotel unit with family and friends. The unit is yours, so you decide how it’s used. Want to lend it to your Aunt Betty and Uncle Lou? No problem.
9. Purchase your condo hotel unit with traditional financing or even as part of a 1031 exchange. A variety of loans are available to invest in condo hotels. Condo hotels also qualify for tax-deferring strategies like 1031 exchanges.
10. Realize appreciation when you resell your condo hotel. Like traditional real estate, over time your condo hotel unit has potential to appreciate. Because of its quality location, professional hotel management and on-site luxury amenities, the value of your vacation home should increase. You keep the profits when you sell.
Be sure that when you research condo hotels for possible purchase that you work with a real estate brokerage that specializes in the condo hotel field. That firm should provide you with detailed property data to compare various condo hotels and should assist you in selecting one that best meets your needs. As in most real estate transactions, all real estate commissions are paid by the seller.
Condo Hotel Center is the No. 1 seller of condo hotels worldwide. Based in Miami, Florida, the company also has offices in London, United Kingdom and Hamburg, Germany. It offers more than 110 highly-desirable condo hotels in U.S. cities like Miami, Orlando and Las Vegas as well as in Canada, the Caribbean, Dubai and the rest of the world.
Its websites, CondoHotelCenter.com and CondoHotelsDubai.com, are considered the world’s leading sources of information on condo hotels with more than 500 pages of professionally-written original content. The company also publishes a popular bi-weekly newsletter called Condo Hotel Property Alerts that highlights new condo hotels and gives buyers an opportunity to purchase property in early pre-construction stages when prices are lowest and selection is greatest.