Calculating Returns on Condo Hotels

With Condo Hotel you are purchasing Real Estate, NOT Revenue.

The SEC regulates/restricts any forward looking statements made by the condo hotel industry. It is important for you to do your own research. This is an attempt to help you begin this task, but this should be a starting point, not an end. Our concern is that our borrowers know clearly what they are buying, and can afford the monthly payments should there be NO rental income.

Hassle-free rental income as an offset to ownership expense is the an advantage to condo hotel vs a traditional condo. If you must hire a management company for your traditional condo, and are limited to weekly rentals (which should generate less on a per night use than nightly rentals) your net rental income should be higher for a condo hotel, with less hassle on your part. Your time and money invested has a value that should be used in your determination of the value of your purchase. Services and amenities are also important, both add an expense of ownership, and a benefit for rental potential.

The Math: Consumer
Since most people don