Not Your Typical Vacation Home What could be more perfect that owning a luxury vacation home at a landmark resort and receiving rent revenue whenever youre not using it? Condo hotels are the newest trend in vacation home ownership. Live in it when youre there; rent it when youre not. So how do condo hotels differ from owning a traditional vacation apartment or condominium? These are not your typical second homes. They are fabulously-furnished condominium suites in some of the most famous hotels and resorts around the country. The properties are usually large, high-rise, luxury hotels operated by a big name like Four Seasons, Ritz Carlton, Sonesta, Starwood or Hilton. Prices range from $200,000 to over $1 million for prime properties. Generate Revenue to Defray Mortgage Costs How do condo hotel owners find renters? This is what makes the program so appealing. When owners are not using their unit, it is put into the rental program of the hotel. By capitalizing on a hotels name recognition, advertising, national affiliations, centralized reservation system and management expertise, unit owners typically receive a higher level of rental income than they would from a traditional vacation home. Plus the hotel takes care of dealing with the renters, as well as all housekeeping and maintenance of the condo hotel units. Talk about hassle-free! The Real Appeal of Condo Hotels Is Appreciation While its nice to receive rental revenue on your vacation home, the more important factor from an investment standpoint is its appreciation. Condo hotel units have been appreciating at a far faster rate than single family homes and condos in the same areas. Most condo hotels are purchased directly from the developer. With limited inventory, condo hotel units have been moving at lightning speed. In fact, almost all condo hotels sell out in pre-construction, long before even a single spade of dirt has been overturned. And as is the case in any situation where supply is greatly outpaced by demand, condo hotel owners have been seeing tremendous appreciation in their units. World-Famous Resorts Attract International Attention Most condo hotels are located in seasonal resort areas. South Florida, particularly Miami Beach and Ft. Lauderdale, is one of the countrys hottest markets with world-famous properties like the Fontainbleau, Canyon Ranch Living and Trump International leading the way. Las Vegas and some of the Caribbean Islands are also popular condo hotel destinations. Whos buying? The answer, in a nutshell, is everyone. That is, investors and vacationers who recognize the appreciation potential of a revenue-generating vacation home. That appeal isnt limited to U.S. buyers. The concept of condo hotels has had international appeal with buyers from Latin America and Europe competing with Americans for the best properties. ### |
