How does the condo hotel management company choose which condos will be rented out to vacationers? Is it done on a strict rotational basis for instance?
It is usually a "semi-strict" rotational basis. Typically, the hotel guest is king, and every effort is made to fulfill his requests. (What else would you expect when you pay to stay in a four or five star hotel?) If your one-bedroom unit faces the city and is on the third floor, for instance, and a hotel guest specifically requests an oceanfront view or to be on the 20th or higher floor, then your unit would not be offered. If no specific requests are made and yours is the next unit in rotation of the size that the guest wants, then your unit will be rented. Recognize that some condo hotel buyers will choose to pay a premium for a higher floor or for an oceanfront view and rightfully should expect a premium in the rent they receive when a guest stays in their unit. That's why the cheapest unit is not always the best one to purchase.
The above question was submitted via e-mail by a visitor to www.condohotelcenter.com. The answer was prepared by Joel Greene, a licensed real estate broker with Condo Hotel Center which specializes in the sale of condo hotel units and fractional ownerships in private residence clubs.