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What is a Condo-Hotel?

Condo-hotels are full-service hotel properties with a portion of their inventory dedicated to whole ownership condominiums. These condo-hotel units are made available for purchase by the condo-hotel developer for purchase by public buyers. The buyers may use their unit as a permanent residence, a vacation home or they have the option of placing it into an organized rental program. Rental revenue, which is shared with the hotel operator, helps defray the owner's expenses. The concept has been evident in the United States for over 40 years, but regained momentum in Florida in the late 1990s and has now become very common in Las Vegas.

Benefits of Purchasing a Condo-Hotel Unit versus a Traditional Condominium Unit

1. Owner Usage - Like a traditional condominium, condo-hotel owners can use their unit whenever they like. However, unlike a traditional condominium, condo-hotel owners have the option of participating in the hotel rental program and sharing in the revenue that the unit generates.
2. Hassle Free - The advantage for condo-hotel owners who choose to rent their units through the rental program is they avoid the responsibilities that come with being a landlord. The hotel takes care of maintaining the condo, the common areas, and all rental issues.
3. Furnishings - Unlike traditional condominiums, condo-hotels are purchased fully furnished. This allows unit owners to enjoy professionally designed and appointed units without the cost and time consuming hassle of designing the unit themselves.
4. Amenities - Condo-hotels offer unit owners the same amenities and services as hotel guests. Unit owners have direct access and generally preferred reservations at all of the hotel restaurants, clubs and other entertainment venues. At many condo-hotel properties, unit owners will also have access to personal concierge services, as well as access to spa and fitness facilities. Additional services also available to condo-hotel unit owners include, but are not limited to: housekeeping service, room service, laundry and valet.
5. Brand and Management Company - The key to a successful condo-hotel is the hotel operator. The better the operator, the more likely the success of the property. Strong hotel brands typically generate higher room rates and occupancy.

Frequently Asked Questions Regarding the Condo-Hotel Concept

1. What is the difference between a traditional condominium and a condo hotel?
   
   Like a traditional condominium, condo-hotel owners can use their unit whenever they like. However, unlike a traditional condominium, condo-hotel owners have the option of participating in the hotel rental program and sharing in the revenue that the unit generates.
   
   Condo-hotels are also purchased as fully furnished units. This allows unit owners to enjoy professionally designed and appointed units without the time consuming hassle of designing the unit themselves. Purchasers of traditional condominiums would need to design, furnish and maintain the unit themselves.
   
   Lastly, condo-hotels offer unit owners the same amenities and services as hotel guests, which range from room service and housekeeping to direct access to restaurants and clubs.
   
   
2. Why have condo-hotels become so popular?
   
   It is a concept that makes sense. If structured correctly everyone wins. The condo-hotel concept allows worry free vacationing and travel to your second home.
   
   In addition, it is ideal for owners who don't want to occupy the condo year round. The buyer wins because some of their expenses are offset by participating in the hotel rental program.
   
   
3. Can family members and friends use the owners unit?
   
   Yes, with the permission of the owner.
   
   
4. Can unit owners furnish their own units if they wish?
   
   All units are purchased fully furnished. If the unit is placed in the hotel rental program, the owner must comply with the hotel's furniture selection. However, the owner is free to bring any personal items while they are staying in their unit, which are taken with them when they leave or placed in storage. If the owner does not with to participate in the hotel rental program at any time, they may furnish their unit however they like.
   
   
5. What are the fees associated with owning a condo hotel?
   
   All unit owners will become members of the HOA (Home Owners Association), which will establish a budget of shared expenses, such as the cleaning and maintenance of hallways, electricity and the expenses associated with any staff that is dedicated to the operation of the condominium and the Association. These expenses are then assessed to all unit owners on a monthly basis. Owners that participate in the hotel rental program may be assessed other fees. Owners will also be responsible for the yearly property taxes and insurance for their individual units.
   
   
6. How do you finance a condo-hotel purchase?
   
   Condo hotel purchases may be financed through a lending institution just as any other real estate purchase.
   
   
7. What type of ownership is a condo-hotel?
   
   A condo hotel is owned in a fee simple, just like a standard condominium or your house. Unlike timeshare, the condo hotel is not a shared ownership of the individual unit.