Americans are traveling more than ever. According to a survey published by AAA, approximately 88 million Americans plan to take a family vacation in 2018. That’s a lot of people hitting the road for adventure and time apart from normal lives and routines. With vacation travel becoming a given rather than a luxury for American families, new options are popping up to provide convenience and affordability. The condo hotel is one such option.
What is a Condo Hotel?
A condo hotel (condotel) is a condominium building which functions like a hotel with a front desk overseeing short-term rentals of its units. Most offer standard hotel amenities such as housekeeping, pool, lounges, restaurants and concierge, room and spa services for residents and guests to enjoy. Buyers purchasing a unit from a condo hotel buy a physical piece of property, as opposed to a timeshare buyer who usually only purchases the “right to stay” at a certain place for a certain amount of time each year.
How Does It Work?
Luxury hotel chains like Ritz-Carlton, Four Seasons, Hilton and Bulgari (among others) operate condo hotels in typical vacation destinations. Florida, particularly the Miami area, was the first area to have intensive condo hotel development with other large cities like Las Vegas, Chicago and New York following. Nowadays, condo hotels can be found in tourist destinations outside the U.S., as well.
During development, the hotel management company will advertise its units and services. Buyers purchase a unit – a hotel room, suite of rooms or any other number of floor plan types – and use it as a vacation property whenever they choose. Owners must pay regular maintenance and homeowner’s fees, but can place their unit in the hotel’s rental program when not using it in order to bring in income and offset some of its carrying costs. An owner may use the hotel management company to oversee his unit’s rental, paying the company a percentage of the rental revenue, or he may choose to oversee the process himself.
What are the Benefits?
Condo hotels have the potential to appreciate in value, but as with any real estate investment, it can’t be guaranteed. Nevertheless, a condo hotel can be a great option for families wanting a luxurious vacation with the potential to be a better value than other options. And even if you don’t have the funds or desire to purchase a condo hotel unit, you can still enjoy the amenities of one by renting one for your next vacation. So ditch that cumbersome timeshare at timeshareexitplan.com and plan a better trip now!