Not your typical holiday home
What could be more perfect about owning a luxury vacation home at a landmark resort and receiving rental income when you are not using it? Condo hotels are the latest trend in vacation home ownership. Live in it when you are there; rent it when you are not.
So how do condo hotels differ from owning a traditional condo or condo? These are not your typical second homes. They are fabulously furnished condo suites in some of the most famous hotels and resorts across the country. The properties are usually large, high-rise, luxury hotels run by a big name like Four Seasons, Ritz Carlton, Sonesta, Starwood or Hilton. Prices range from $ 200,000 to over $ 1 million for prime real estate.
Generate Revenue to Combat Mortgage Costs
How Do Condo Hotel Owners Find Tenants? This is what makes the program so appealing. When owners do not use their unit, it is put into the hotel's rental program. By utilizing a hotel & # 39; s name recognition, advertising, national affiliations, centralized booking 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 the tenants as well as all the housekeeping and maintenance of the apartment hotel units. Talk about trouble-free!
The real appeal of condo hotels is appreciation
While it is nice to receive rental income at your cottage, the most important factor from an investment standpoint is the appreciation. Condo hotel units have been valued at a much 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 moved at lightning speed. In fact, almost every apartment hotel sells under construction, long before even a single spade of dirt is overturned. And as is the case in any situation where supply is much better than demand, condo hoteliers have seen tremendous appreciation in their units.
World famous resorts are attracting international attention
Most condo hotels are located in seasonal resort areas. South Florida, especially Miami Beach and Ft. Lauderdale, is one of the nation's hottest markets with world-renowned properties such as Fontainbleau, Canyon Ranch Living and Trump International at the forefront. Las Vegas and some of the Caribbean are also popular condo hotel destinations.
Who buys? In short, the answer is everyone. That is, investors and holidaymakers who recognize the appreciation potential of a revenue-generating holiday home. This appeal is not limited to US buyers. The concept of condo hotels has had international appeal with buyers from Latin America and Europe competing with Americans for the best properties.