Consumers Are Asking Before Buying
|December 2005 - It’s the newest catchphrase among real estate investors.
Condo hotels are gaining attention as the ideal solution for people who
want a hassle-free, luxury vacation home that generates revenue and has
Not Your Daddy’s Timeshare
Condo hotels are not the timeshares of yesterday. These are luxury hotel properties, complete with all the amenities and services you’d expect from a four- or five-star hotel.
Buyers have full ownership of their condo hotel unit and are not restricted to a one- or two-week stay or a particular week of the year. In most cases they can stay 30-60 days per year in any configuration of time they choose. Plus, they can elect to place their unit into the hotel's rental management program when they’re not using it and share in the revenue it generates.
The advantage for condo hotel owners who choose to rent their units through the hotel program is they avoid the responsibilities that come with being a landlord. The on-site management company takes care of maintaining the condo, the common areas and the amenities. It also finds renters and services all their needs.
The owners receive revenue throughout the year from guests who use their condo when it would otherwise be vacant and that revenue helps offset the expense of owning the vacation home. More importantly, from an investment standpoint, they can sell their condo hotel unit whenever they wish and keep any profit derived from appreciation.
Buyers Have Sophisticated Taste
Who’s buying? Most condo hotel buyers are affluent, well-educated and well-traveled. They enjoy all of the amenities and services provided at a luxury hotel, including chic décor, personal concierge services, access to spa and fitness facilities, fine dining and premier club access.
Condo Hotel Trend Spreads
The condo hotel trend started in destination resort cities such as Miami Beach and Las Vegas but has spread to upscale cities with vital downtown areas. Currently, condo hotels are under development throughout popular vacation areas like Fort Lauderdale, Orlando and many Caribbean countries and in major cities like Chicago, San Diego and Toronto.
Top Hotel Operators Run Condo Hotels
Most condo hotels are managed by prominent four- and five-star hotel operators such as Four Seasons, Ritz -Carlton, Trump International, Sonesta, The Regent, Starwood and Hilton. Because of the hotel's brand name, worldwide marketing, national affiliations, centralized reservation system and management expertise, condo hotel unit owners typically receive a higher level of rental income than they would from owning a traditional vacation home.
Condo Hotels Sell Out in Pre-construction
Prices for condo hotel units range from $200,000 to upwards of one million.
The majority of condo hotels sell out in pre-construction phases with the
earliest buyers realizing the most significant appreciation, as developers
typically raise prices three to six times throughout the selling process.
About the Author: Joel Greene is the President of Condo Hotel Center in Miami, Florida. www.CondoHotelCenter.com
|Also See:||Tennis Icons Andre Agassi and Stefanie Graf Developing a Fairmont Hotel at Tamarack Resort in Idaho / December 2005|
|Catching the Buzz on Condo Hotels, A Roundtable Discussion / The Global Hospitality Advisor / JMBM / December 2004|