Condo Hotels offer luxury and great investment potential

Not your typical vacation home

What could be more perfect than owning a luxury vacation home in an iconic resort and receiving rental income when you’re not using it? Condominiums are the latest trend in vacation home ownership. Live in it when you are there; Rent it when you’re not.

So how are hotel condos different from owning a traditional vacation apartment or condo? These are not your typical second homes. They are fabulously furnished condominium suites in some of the most famous hotels and resorts in the country. The properties are usually large luxury high-rise 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 income to defray mortgage costs

How do hotel condo owners find tenants? This is what makes the program so attractive. When owners do not use their unit, it is included in the hotel’s rental program. By capitalizing on a hotel’s 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 home. traditional vacation. In addition, the hotel takes care of dealing with the tenants, as well as the cleaning and maintenance of the condo hotel units. Talk about no problems!

The real draw of hotel condos is the appreciation

While it’s nice to receive rental income from your vacation home, the most important factor from an investment standpoint is its appreciation. Condo hotel units have been appreciating at a much faster rate than single family homes and condominiums in the same areas.

Most condominiums are purchased directly from the developer. With limited inventory, condo hotel units have been moving at lightning speed. In fact, almost all condominiums are sold before construction, long before a single shovel of dirt has been dumped. And as is the case in any situation where demand far outstrips supply, hotel condo owners have seen a huge appreciation in their units.

World-famous resorts attract international attention

Most of the condominiums are located in seasonal tourist areas. South Florida, particularly Miami Beach and Ft. Lauderdale, is one of the hottest markets in the country with world-famous properties like Fontainbleau, Canyon Ranch Living and Trump International leading the way. Las Vegas and some of the Caribbean islands are also popular condo hotel destinations.

Who is buying? The answer, simply put, is everyone. That is, investors and vacationers who recognize the appreciation potential of an income-generating vacation home. That appeal isn’t limited to American buyers. The condo hotel concept has had international appeal with buyers from Latin America and Europe competing with Americans for the best properties.

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