1. What is a condominium hotel or condotel? Think of a condo hotel (also sometimes referred to as a condotel or resort condo) as purchasing a condo, although one which is part of a four-star caliber hotel. Therefore, as an owner, once you’re on holiday, you’ll find the advantage of more four-star services and
1. What is a condominium hotel or condotel?
Think of a condo hotel (also sometimes referred to as a condotel or resort condo) as purchasing a condo, although one which is part of a four-star caliber hotel. Therefore, as an owner, once you’re on holiday, you’ll find the advantage of more four-star services and amenities than you would get in a typical condominium.
2. What types of services and conveniences are found in condominium hotels?
If it’s possible to imagine the niceties you would find in an upscale hotel, then you can envision a condominium hotel. Among the features are usually resort-style pools, full size spas, state-of-the-art fitness facilities, fine dining restaurants, concierge services and room services.
In some places, like Las Vegas, you’ll discover condo resorts with their own casinos, retail areas, and entertainment places. In areas like Orlando, you will find condominium hotels in Gran Canaria with their own water parks and convention facilities.
3. What’s the difference between a condo resort and a conventional condo?
The big difference between a hotel and a condominium resort is that a hotel generally has one owner, either corporate or individual, but a condominium resort can be bought off unit by unit.
4. Is it evident to hotel guests whether they’re staying at a condominium resort or a traditional resort?
A hotel guest will probably never be aware that the hotel has multiple owners because the property is worked just like a traditional hotel and often under the management of a renowned hotel business like Hilton, Hyatt, Starwood, Trump or W. Also, every one of the individual condo hotel units will seem identical in design and décor to every other, just as they would in a conventional hotel.
5. Who typically buys luxury hotels?
They’re primarily sold to people who want a holiday home but do not wish to deal with the hassles typically associated with second home ownership for example maintaining the property or finding tenants in the off season.
6. What is the demographic of the normal condominium hotel buyer?
The spectrum of condominium hotel buyers is pretty wide. There are families that need a second home in a holiday destination. You can find baby boomers who are at or nearing retirement and want somewhere they could”winter.” Additionally, there are plenty of investors who buy a condo hotel unit with little intention of using it; they are in it for the potential appreciation of the real estate.
7. Can you live in a condo resort?
Condo hotels are not typically offered as primary homes. In fact, a number limit the device owner’s use of this condo hotel unit (typically 30-60 times annually ) because the unit is expected and desired in the hotel’s nightly rental program where it can be offered to guests and create revenue.
8. Who gets the money when your condo hotel is leased out?
The hotel management company splits the rental earnings with the individual condo hotel proprietor.
9. Who finds resort guests and cleans and maintains the condo hotel units?
The hotel management company markets the house and books resort guests. Additionally, it keeps the unit and ensures the smooth operation of each one the resort’s amenities and services.
10. What are the benefits/disadvantages of buying a condotel over buying rental properties that are typical?
- · Hassle-free possession; no landlord issues
- · Rental revenue to offset some or perhaps all ownership expenses
- · A fantastic vacation home available to be used whenever you want
- · A real estate investment at a time when other investments might seem less attractive
- · Strong likelihood of appreciation
- · Pride of ownership “I own a piece of a Trump”
- · Pets are often not welcome.
- · An owner’s condo hotel unit can be leased when the owner would like to it, so advance reservations are required to guarantee accessibility.
- · The condo hotel unit is subject to exactly the very same dips on the market which impact all resorts in the competitive market place: hurricanes, terrorist threats, warm winters up north, price of gas, etc., all of which can impact a unit’s occupancy rate and the quantity of revenue it generates.
11. Are Luxurious hotel units hard to fund?
Not at all, but they do take 20% down generally, whereas condos can be purchased with less cash down. Additionally, it is important to ensure to use a mortgage agent who has had success in receiving condo resort financing deals done. Many banks still do not do them, but more and more are becoming involved as condominium resorts become more widely available.