Condo Hotels Are Becoming A Hot Real Estate Trend
Reprinted from the Perl Mortgage newsletter, winter 2005
Imagine owning a luxury vacation home at a world class resort and receiving rental income whenever you aren’t using it. Condo hotels are the newest trend in vacation home ownership. Live in it when you’re there, and rent it out when you are not.
The units are beautifully furnished condominium suites in some of the most famous hotels and resorts all around the U.S. The properties are typically large, high-rise, luxury hotels. Prices can range from $250,000 to more than $1 million for prime condo hotel properties.
What makes the condo hotel such an attractive ownership option is the rental income. When the owners of condo-hotel units aren’t using their units, they have the option of placing their unit into the hotel’s rental program. By capitalizing on a hotel’s name recognition, advertising, national affiliations, centralized reservation system and management expertise, most unit owners typically receiver higher level of rental income than they would from a traditional vacation home.
As part of the rental agreement, the hotel pays for most operating expenses such as marketing, housekeeping, and administrative costs. The condo-hotel owner typically pays for insurance, real estate taxes, and capital improvements.
When you stay in your condo hotel suite, you can take advantage of the concierge, valet, maid and 24-hour room service. You will also enjoy perks such as the fitness center, business center, and on-site retail.
You can check out current condo hotel listings at Condo Hotel Center, www.CondoHotelCenter.com. You can also sign up for its Property Alert newsletter to be notified when new condo hotel properties come on the market.