This varies greatly depending on the property and its location. Those properties with brand name management companies, sophisticated marketing and reservation systems have a better shot at bringing in revenue than a non-brand name property in the same area. Of course, it also depends on "lost income," that is, times when you yourself are using your unit. Obviously, the more you use it, especially if you choose to do so during peak season, the more your bottom line will be affected.
At almost all condo hotels, there is never a pooling of the money. You only get the revenue that your individual unit generates.
Yes, and for some owners, the rental revenue generated by the property can cover all of their expenses.
In the U.S., the answer is an emphatic, NO! SEC rules and regulations forbid the sale of condo hotels as an investment. They must be sold as vacation homes and a lifestyle. Therefore, there can be no guarantees about the income that a buyer can, will or might receive. In condo hotels abroad, particularly in places like Dubai, there are rental guarantees, which is part of what makes investing in a foreign country so appealing. If this concept could have appeal to you, learn more about Dubai properties here, www.CondoHotelsDubai.com.
The above question(s) were 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.