Many people dream of owning a holiday home. But concerns about keeping it, leasing it out or justifying the expense when it’s just to be used for a few weeks of this year keep them . Now condo resorts, an innovative kind of holiday home ownership, offer a welcome solution to each of these problems.
Also known as condotels or aparthotels, condominium hotels have been growing in popularity as a way of owning a luxurious home.
Condo hotel buyers purchase an actual condominium unit at hotel or an upscale hotel. The property functions as a hotel, and owners have access to all amenities, facilities and services like hotel guests.
They get a deed and can use their vacation home when they need. When not they can place their unit to the hotel’s rental program and share in the revenue that it generates. The proprietor can also sell his condo hotel unit and might make a profit on its value.
Young professionals, baby boomers and seniors alike are beginning to discover the benefits of owning a condo hotel unit. They enjoy the hassle-free character of condominium hotels as a house in which a management company handles everything from property maintenance to locating hotel guests to rent the units. They also consider luxury hotels a means to diversify their investments.
Condo Hotels Are Not Your Parents’ Timeshare
As properties, condominium hotels differ from timeshares in a number of ways. Together with timeshares, buyers pay for the right to use the property for a set quantity of time every year a week. They don’t have the title to your property, and no rent revenue is received by them for those weeks.
Condo resort owners are able to use their condos when they want throughout the calendar year, within the guidelines of their improvement. They receive a percentage of any earnings their unit creates when they’re not there and the device is leased out to hotel guests.
Timeshares traditionally decrease in value over time, rather than love. They’re regarded as an appreciating asset, while the background of resort resales is limited.
Condo Hotels Offer Facilities
Can condo hotels differ from owning a traditional single family house or condo? Consumers who buy a condominium cover property insurance, taxes and maintenance fees, but do not have access.
Condo hotels, on the other hand, aren’t your standard second home. They’re suites at a resort.
The properties frequently feature four- or five-star amenities, which range from full-service spas and fitness centers to small business centers and restaurants. They also come with hotel services like concierge, valet and room service.
When enjoying the privileges of a full-service hotel, with condo hotels, owners reap the benefits of condo ownership.
Condo hotel units range from studios and apartments to penthouses and villas. Prices for these homes range from $250,000 to more than one million for top properties.
Condo Hotels Generate Revenue to Cover Their Costs
What makes the hotel concept attractive? They have the choice of putting it into the hotel’s rental program when owners aren’t using their condo hotel unit. They get 60 percent of the revenue their unit creates with the balance. The revenue helps offset the costs of owning a holiday home.
While many hotel operators don’t guarantee the leasing of the condominium, by rapping on the hotel’s brand name, strong sales and marketing capacities, centralized booking system and management expertise, owners generally receive a higher level of rental income than they would from a traditional vacation home.
Ownership is 100 percent hassle-free, as the resort operator cares for locating resort guests and maintaining the unit as well as handling the property’s various amenities.
Condo Hotel Expenses Are Shared
How are the possession expenses split? Included in the rental agreement, the hotel pays for most operating expenses like housekeeping, administration, sales and marketing. The condo resort owner pays for real estate taxes, insurance and capital improvements. The leasing revenue that owners receive helps defray these expenses and, in some cases, provides earnings.
Condo Hotels as Investment Tools
While developers sell their condo hotel units as a lifestyle and vacation house alternative, many buyers see virtue in the condo hotel concept as an investment instrument. They say it gives the best of both worlds to them. They can enjoy all of the advantages of touring in a first-class hotel while they own a property that has potential to enjoy.
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