How to buy your first Condo?
1. What is a condotel or condo hotel?
Think of a condotel (also sometimes called a condotel or hotel condo) as buying a condominium, although one that is part of a four-star caliber hotel. Therefore, as an owner, when you are on vacation, you’ll get the benefit of more four-star services and amenities than you'd get in a typical condominium.
2. What types of services and amenities are found in condotels?
If you can imagine the niceties you’d find in an upscale hotel, then you can picture a condotel. Among the features are often resort-style pools, full-service spas, state-of-the-art fitness centers, fine dining restaurants, concierge services and room service.
In some locations, like Las Vegas, you’ll find condotels with their own casinos, retail areas, and entertainment venues. In places like Orlando, you’ll find condotels with their own water parks and convention facilities.
3. What is the difference between a condotel and a traditional condominium?
The big difference between a hotel and a condotel is that a hotel typically has one owner, either individual or corporate, but a condotel is sold off unit by unit. Therefore, a 300-room condotel could have as many as 300 unit owners.
4. Is it evident to hotel guests whether they’re staying in a condotel or a traditional hotel?
A hotel guest will likely never know that the hotel has multiple owners because the property is operated just like a
traditional hotel and often under the management of a well-known hotel company like Hilton, Hyatt, Starwood, Trump or W. Also, each of the individual condotel units will look identical in design and décor to every other, just as they would in a traditional hotel.
5. Who typically buys condotels?
They’re primarily sold to people who want a vacation home but do not want to deal with the hassles typically associated with second home ownership such as maintaining the property or finding renters in the off season.
6. What is the demographic of the typical condotel buyer?
The spectrum of condotel buyers is pretty broad. There are families that want a second home in a vacation destination. There are baby boomers who are at or nearing retirement and want somewhere they can “winter.” There are also plenty of investors who purchase a condotel unit with little intention of ever using it; they’re in it for the potential appreciation of the real estate.
7. Can you live in a condotel?
condotels are not typically offered as primary residences. In fact, many of them limit the unit owner's usage of the condotel unit (typically 30-60 days per 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 condotel is rented out?
The hotel management company splits the rental revenue with the individual condotel owner. While the exact percentages vary from property to property, the typical rental split is in the 50%-50% range.
9. Who finds hotel guests and then cleans and maintains the condotel units?
The hotel management company markets the property and books hotel guests. It also maintains the unit and ensures the smooth operation of all of the hotel’s services and amenities.
