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We Know: All About Condo Hotels
What is a condo hotel?
A condo hotel (also known as a hotel condo) is a building used as both a hotel and a condominium. Those who own condo
units in a hotel allow the condos to be rented out to hotel guests. The hotel and condo owners share the profits, though
the condo owner pays for maintenance fees, property taxes, and insurance. The condo owner can stay at their condo, usually
after making prior arrangements with the hotel. The units come furnished and the condo owner cannot make any
changes or personalize it.
What You Should Know About Condo Hotels Before Investing
Prospective buyers should be aware of the following:
- If you are interested in a particular area or site where construction of a condo hotel is planned,
do not wait until it has been built before inquiring about a unit. Many properties accept reservations before they begin
construction. The sooner you make a reservation, the more choices you will have.
- As with most other property investments, a real estate broker is a good choice to help you find the condo hotel unit
that is best for you. Find one who specializes in hotel condos.
- Condo hotels use management companies to oversee the rental and maintenance of units. When considering a hotel condo,
find out as much as you can about the management company. If the company markets the units internationally as well as
domestically, the chances are greater that your unit will be rented more than not, which makes your investment that much
more solid.
- Obtaining financing for hotel condo units has become easier because mortgage companies, banks, and other lenders are
more comfortable with such investments. Shop around for the best rates and terms.
- Most hotel condos are four or five star establishments. These make the units more attractive to both renters
and prospective owners. Oceanfront property will always sell for more than inland properties, even those a short distance
from the beach. If oceanfront is out of your price range, look for properties that are close by.
- In most cases, when you want to use your condo hotel unit, you will have to make advance arrangements with the hotel
management. Make sure that their policies on check out and check in times, housekeeping, etc. will work for you.
- Hotel condo units that belong to a franchise generally cost more, but
most people prefer renting or buying units from a company they know. If you sell later on,
you may have more prospective buyers if your unit is associated with a reputable franchise.
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