New Option in Vacation Home Ownership
What could be more perfect that having a five-star vacation home
at a landmark resort and receiving rent revenue whenever you're
not using it? Condo hotels are the newest real estate trend,
combining a luxurious lifestyle and hassle-free ownership with
investment potential.
So how do condo hotels differ from owning a traditional vacation
apartment or condominium? These are not your typical second
homes. They are fabulously-furnished condominium suites in some
of the most famous hotels and resorts around the country. The
properties are usually large, high-rise, upscale hotels operated
by a big name like Four Seasons, Ritz Carlton, Trump, Sonesta,
Starwood, Hyatt or Hilton. Prices range from $200,000 to over $1
million for prime properties.
Condo Hotels Generate Revenue to Defray Ownership Costs
How do condo hotel owners find guests to rent their units? This
is what makes the program so appealing. When owners are not
using their unit, it is put into the rental program of the
hotel.
By capitalizing on a hotel's name recognition, advertising,
national affiliations, centralized reservation system and
management expertise, unit owners typically receive a higher
level of rental income than they would from a traditional
vacation home.
The revenue generated by their unit helps defray the costs of
ownership. Best of all, the hotel management company takes care
of dealing with the guests, as well as all housekeeping and
maintenance of the condo hotel units and common areas.
The Real Appeal of Condo Hotels Is Appreciation
While owners receive rental revenue from their vacation home,
the more important factor from an investment standpoint is its
appreciation. Condo hotel units have been appreciating at a far
faster rate than single family homes and condos in the same
areas.
Most condo hotels are purchased directly from the developer.
With limited inventory, condo hotel units have been moving at
lightning speed. In fact, most condo hotels sell out in
pre-construction. Often a large percentage of the units are
reserved before even a single spade of dirt has been overturned.
And as is the case in any situation where supply is greatly
outpaced by demand, condo hotel owners have been seeing
significant appreciation in their units.
World-Famous Resorts Attract International Attention
Most condo hotels are located in seasonal resort areas. South
Florida, particularly Miami Beach and Ft. Lauderdale, is one of
the country's hottest markets. Orlando, Las Vegas, Myrtle Beach
and some of the Caribbean Islands are also popular condo hotel
locations. Recently, the downtowns of several major cities, like
Chicago, Boston and Toronto, have begun seeing the emergence of
condo hotels.
Who's buying? The answer, in a nutshell, is everyone. That is,
investors and vacationers who recognize the appreciation
potential of a revenue-generating vacation home. That appeal
isn't limited to U.S. buyers. The concept of condo hotels has
had international appeal with buyers from Latin America and
Europe competing with Americans for the best properties.
Learn More About Condo Hotels
Condo hotels have particular appeal in today's market because of
relatively low interest rates and a tumultuous stock market that
has investors looking for safer alternatives. Investors who take
the condo hotel plunge can enjoy all the amenities of
vacationing in a first-class resort while watching their real
estate investment appreciate.
For more information on condo hotels including listings of
available properties, visit www.condohotelcenter.com.
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