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? Condo hotels are the newest 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 vacation condo or apartment? 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 hotels operated by big names like Four Seasons, Ritz Carlton, Sonesta, Starwood or Hilton. Prices range from $ 200,000 to over $ 1 million for premium properties.

Generate income to defray mortgage costs

How do condo owners find tenants? This is what makes the show so appealing. When the 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 generally receive a higher level of rental income than they would from a rental home. traditional holiday. In addition, the hotel is in charge of dealing with tenants, as well as cleaning and maintenance of the condominium units. Speak without complications!

The real draw of condo hotels is appreciation

While it is good to receive rental income from your vacation home, the most important factor from an investment point of view is its appreciation. Condo units have appreciated 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 been moving at lightning speed. In fact, almost all condo hotels sell out before construction, long before a single shovel of dirt has been turned over. And as is the case in any situation where supply is largely outpaced by demand, condo hotel owners have seen tremendous appreciation in their units.

World-famous resorts attract international attention

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

Who buys? The answer, in a nutshell, is for 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 concept of condo hotels has had international appeal with buyers from Latin America and Europe competing with Americans for the best properties.

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