1. What is a condo hotel or condotel?
Think of a condo hotel (also sometimes called a condotel or condo hotel) as buying a condominium, though it's part of a four-star caliber hotel. Therefore, as an owner, when you are on holiday, you will have the advantage of more four-star services and amenities than you would in a typical condominium.
2. What kind of services and facilities are in condo hotels?
If you can imagine the delicacies you would find in a luxury hotel, then you can see a condo hotel. Features include resort-style pools, a full-service spa, state-of-the-art fitness facilities, excellent restaurants, concierge services, and room service.
In some places, such as Las Vegas, you will find condo hotels with their own casinos, retail areas and entertainment venues. In places like Orlando, you will find condo hotels with their own water parks and conference facilities.
3. What is the difference between a condo hotel and a traditional condominium?
The big difference between a hotel and a condo hotel is that a hotel usually has an owner, either individually or corporately, but a condo hotel is sold unit by unit. Therefore, a 300-room condo hotel could have up to 300 unit owners.
4. Is it obvious to hotel guests whether they are staying in a condo hotel or a traditional hotel?
A hotel guest will never know that the hotel has many owners because the property operates like a traditional hotel and often under the management of a well known hotel company like Hilton, Hyatt, Starwood, Trump or W. Also, individual hotel units condo's will look identical in design and decor to each other, just like in a traditional hotel.
5. Who usually buys condo hotels?
They are mainly sold to people who want a vacation home but do not want to deal with the hassles usually associated with second home ownership, such as retaining ownership or finding out-of-season renters.
6. What is the demographic of a typical condo hotel buyer?
The range of condo hotel buyers is quite wide. There are families who want a second home in a vacation destination. There are baby boomers who are or are nearing retirement and want somewhere they can "winterize". There are also many investors who buy a hotel complex with no intention of ever using it. is in it for the possible valuation of real estate.
7. Can you live in a condo hotel?
Condo hotels are not usually offered as capitals. In fact, many of them limit the use of the hotel unit (usually 30-60 days a year) because the unit is expected and needed in the hotel's nightly rental program, where it can be offered to guests and generate revenue.
8. Who gets the money when your condo hotel is rented?
The hotel company separates rental income with the hotel owner. While exact rates vary from property to property, the typical rental space is in the 50% -50% range.
9. Who finds hotel guests and then cleans and maintains the condo hotel units?
The hotel company manages the property and guests of the hotel. It also maintains the unit and ensures the smooth operation of all hotel services and amenities.
10. What are the advantages / disadvantages of buying a condotel for the purchase of standard rental property?
The advantages include:
· Abused property. no ownership issues
· Rental income to offset some or perhaps all property costs
· A fantastic holiday home available for use whenever you want
· A real estate investment at a time when other investments may seem less attractive
· Strong estimation probability
· Pride of ownership – "I have a bit of a trump"
· The annual cash flow may be equal to or less than the annual cost of ownership
· Pets are usually not welcome.
· An owner's hotel unit can be rented when the owner so wishes, thus advances are required to ensure availability.
· The condo hotel unit is subject to the same market reductions that affect all hotels in the competitive market: hurricanes, terrorist threats, hot north winters, gas prices, etc., which may affect the unit occupancy rate and the amount of revenue that produces.
11. Is it difficult to fund condo hotels?
Not at all, but they usually get 20% down, while condos can be bought with less cash down. It is also important to make sure that you are using a mortgage broker who has been successful in making condo hotel financing deals. Many banks still do not, but they are increasingly involved as hotel accommodations become more widely available.
12. How long are the condo hotels located and where are they?
Condo hotels have been around for decades, but the huge increase in four-star and five-star hotel accommodations that have made their way across the country began around 2000 in the Miami area. The Miami-Fort Lauderdale area still has most of the condo hotels, but areas like Orlando and Las Vegas are developing a privately owned hotel complex at an even faster rate and will probably surpass South Florida soon. Other sophisticated areas are places like the Bahamas, Panama, the Dominican Republic, Mexico, Canada and Dubai.
13. How much do hotel units cost?
It's like asking how much a car costs. There are different condo hotels. Some require more money than others, obviously.
There are cheap condo hotels out there for just $ 100,000. These are usually found in properties that have transformed their use of an existing hotel. They are sized hotel rooms, do not have kitchen facilities, luxury franchises, and other first class amenities.
Then there are the four star or larger properties that can start in the $ 300,000 to $ 400,000 range, but can reach up to $ 800,000 for a single studio unit. One- and two-bedroom units cost significantly more than a studio. Of course, the studios come fully furnished and finished and will be significantly larger in size than a standard hotel room and may attract guests because of their name, such as St. Regis, the Ritz or the W.
14. What are the standard maintenance costs?
On average about $ 1.00 to $ 1.50 per square meter, but the range can exceed 2.00 square feet on the most luxurious properties.
15. Do you buy condo hotels after they are built, or can you buy pre-condo hotels?
If you are not in a hurry to start a vacation or need to complete a 1031 exchange, it is best to buy condo hotels in pre-construction as early as possible. This is when prices are lower and units are higher. You will probably have to wait two years or more before booking and taking possession of your hotel unit, but you will have locked the price and will benefit from the maximum rating.
16. Is there anything else that investors need to know about condotels?
There is more to buying this type of real estate than the old phrase, "location, location, location". While most condo hotels are in desirable location resorts and business areas, the most important is a good franchise with a robust booking system.
Also, don't be fooled by an aggressive rental split. One or the other, the developer should own, maintain and operate the hotel and its services such as restaurants, bars, thermal baths and swimming pools from its revenue share. If it gives you a very favorable share of the lease, it is also more likely to charge you a higher monthly maintenance fee. Of course, this happens in both ways. If the maintenance difference offered is closer to 50-50, then your maintenance should be even more reasonable.
17. Any suggestions to investors for choosing the condo hotel to buy?
Get good advice. This means that you do not want to rely solely on the stadium provided by a condo vendor. You want to talk to a broker who specializes in hotel accommodation and who knows and understands the entire hotel hotel market, not just the events associated with a single property. He or she will listen to your desires and needs and then suggest recommendations for the properties that best suit your requirements. You will have the opportunity to compare a store and consider the pros and cons of each available property.
A good broker can be the difference between buying a condo hotel that is problematic and not meeting your expectations or one that offers you years of great vacation, good annual revenue and significant profit when you sell.
18. Does it cost more to use a real estate agent to buy a condo hotel than to buy a unit on his own?
No. With new hotel properties, the prices are always set by the developer and are exactly the same whether you are buying directly from a seller in the property or using a broker.
The broker's commission is always paid by the developer and is already incorporated in the price regardless of whether or not an external broker is involved in the sale. Since broker representation is freely available to buyers, it makes sense to lend a helping hand and benefit from his advice before making a purchase.
19. How can prospective buyers find a good condo hotel broker?
Ask your friends for broker recommendations or search for "broker hotel condo." Visit our condo hotel broker websites and see if the information they provide is comprehensive and objective. If their website seems to be focused on selling homes or offices, and condo hotel information seems to be a truth, leave it clear. Your best bet is to work with a specialized condo hotel broker.
20. How can buyers find out about new hotel properties on the market?
Condo hotel brokers can be good sources of information as they often learn about real estate before it is released to the general public. Another option is to subscribe to a newsletter condo hotel like the one we publish called Condo Hotel Property Alert. We offer you for free at our website http://www.CondoHotelCenter.com and have a different condo hotel property available on the market for each edition.