Condo Hotels Combine a Luxurious Lifestyle with Investment Potential

New Option in Vacation Home Ownership What could be more perfect that having a five-star vacation home at a landmark resort and receiving rent revenue whenever you're not using it? Condo hotels are the newest real estate trend, combining a luxurious lifestyle and hassle-free ownership with investment potential. So how do condo hotels differ from owning a traditional vacation apartment or condominium? These are not your typical second homes. They are fabulously-furnished condominium suites in some of the most famous hotels and resorts around the country. The properties are usually large, high-rise, upscale hotels operated by a big name like Four Seasons, Ritz Carlton, Trump, Sonesta, Starwood, Hyatt or Hilton. Prices range from $200,000 to over $1 million for prime properties. Condo Hotels Generate Revenue to Defray Ownership Costs How do condo hotel owners find guests to rent their units? This is what makes the program so appealing. When owners are not using their unit, it is put into the rental program of the hotel. By capitalizing on a hotel's name recognition, advertising, national affiliations, centralized reservation system and management expertise, unit owners typically receive a higher level of rental income than they would from a traditional vacation home. The revenue generated by their unit helps defray the costs of ownership. Best of all, the hotel management company takes care of dealing with the guests, as well as all housekeeping and maintenance of the condo hotel units and common areas. The Real Appeal of Condo Hotels Is Appreciation While owners receive rental revenue from their vacation home, the more important factor from an investment standpoint is its appreciation. Condo hotel units have been appreciating at a far 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, most condo hotels sell out in pre-construction. Often a large percentage of the units are reserved before even a single spade of dirt has been overturned. And as is the case in any situation where supply is greatly outpaced by demand, condo hotel owners have been seeing significant appreciation in their units. World-Famous Resorts Attract International Attention Most condo hotels are located in seasonal resort areas. South Florida, particularly Miami Beach and Ft. Lauderdale, is one of the country's hottest markets. Orlando, Las Vegas, Myrtle Beach and some of the Caribbean Islands are also popular condo hotel locations. Recently, the downtowns of several major cities, like Chicago, Boston and Toronto, have begun seeing the emergence of condo hotels. Who's buying? The answer, in a nutshell, is everyone. That is, investors and vacationers who recognize the appreciation potential of a revenue-generating vacation home. That appeal isn't limited to U.S. buyers. The concept of condo hotels has had international appeal with buyers from Latin America and Europe competing with Americans for the best properties. Learn More About Condo Hotels Condo hotels have particular appeal in today's market because of relatively low interest rates and a tumultuous stock market that has investors looking for safer alternatives. Investors who take the condo hotel plunge can enjoy all the amenities of vacationing in a first-class resort while watching their real estate investment appreciate. For more information on condo hotels including listings of available properties, visit www.condohotelcenter.com.