by Joel Greene
Condo hotels are cropping up in many resort locations. Operated by renowned hospitality companies such as Hilton, Four Seasons, Hyatt and Trump International, condo hotels are being built in leading vacation spots such as Las Vegas, Miami Beach, the Caribbean, and Dubai.
They often include luxurious features and amenities, making them the quintessential vacation getaway. As real estate holdings, they offer the potential to appreciate in value. Combine all these qualities with their ability to generate rent revenue, and you have a very appealing second home.
To decide if a condo hotel is right for you, consider these 10 factors:
1. Escape to your vacation home when you want. With timeshares or partial ownership, you can use your condo one, maybe two, weeks of the year, and always the same weeks every year. Condo hotels, on the other hand, allow you the flexibility to use your second home any time, given the proper notice.
2. Visit your favorite place again and again. Condo hotels are built in fantastic locations — on the ocean in Miami Beach, next to theme parks in Orlando, on a golf course in the Bahamas, near a ski slope in Telluride, or right on the exciting Las Vegas Strip.
3. Relax in luxury. Enjoy first-class living right in your own second home! With amenities like a full-service spa, a resort-style pool, gourmet restaurants and state-of-the-art fitness center, you’ll have everything you could ever want right on-site. Plus, don’t forget the hospitality extras, from housekeeping and room service to concierge assistance.
4. Ownership is hassle-free. Concerned about taking on responsibilities to maintain the property? No problem. Condo hotels have a professional operations team that handles everything, from maintenance and housekeeping to the efficient operation of the amenities.
5. Be proud to own a respected brand. When you own a condo hotel, you possess a piece of that property. Just imaging possessing your very own Trump, Hyatt, Hilton or Ritz-Carlton. How cool is that!
6. Receive rental income. When you’re not using your condo hotel unit, you can place it into the onsite rental program. The hotel’s professional management team takes care of marketing the property to guests, and you’ll get a portion (usually around 50%) of any revenue your unit generates. This income will offset some or all of your costs of ownership.
7. Resell your condo unit when you’d like. Timeshares can be difficult to resell, since you only own a specific week or two of the year. With a condo hotel unit, you have deeded whole ownership. You’ll find it easier to resell your property, as it’s comparable to reselling any other type of real estate.
8. The condo hotel concept is in its infancy. Condo hotels are a relatively new kind of real estate. As the concept becomes more well known, expect demand for available properties will grow. Now is the time to get in at the beginning of this trend.
9. Your property may appreciate. Condo hotels, like most good quality real estate in desirable destinations, are likely to appreciate in value. You can maximize the appreciation potential by buying your condo hotel unit in the early pre-construction phase, when prices are at first-tier levels.
10. Diversify your investments. If you’re looking for an alternative to the stock market, condo hotels offer a means to expand your portfolio. Best of all, you can invest in real estate without assuming the responsibilities of becoming a landlord.
About the Author:
Joel Greene is the President of Condo Hotel Center in Miami, Florida. His information-packed website, http://www.CondoHotelCenter.com, offers listings, prices and pictures of condo hotels. Be sure to sign up for his free Property Alert newsletter to be kept abreast of new condo hotel properties coming on the market.