What is a Condo Hotel?

• Condo hotels convert a portion of its rooms into condominiums and make it available for purchase to the public. The concept has been evident in the United States for over 40 years, but regained momentum in Florida in the late 1990s. Hotel companies discovered they could secure necessary financing to construct new hotels through the sales of the condominiums. The idea quickly became contagious and spread throughout the country among hotel companies'. It's a popular concept that's gaining national recognition among major hotel players.

How Does a Condo Hotel Operate?

• Once a property is purchased in a condo hotel, owners can enjoy their luxurious new condo and rent it through a rental program, which is usually administered by a hotel management company. If the property is rented, owners receive a percentage of the proceeds. In addition to renting your property, the hotel management will also take care of details such as the maintenance and cleaning of your condo.

Why Invest in a Condo Hotel?

• Most condo hotels are located in either major metropolitan cities or top vacation destinations, such as Orlando. This market in the past year ranked in the top ten for increase in home prices, according to the Office of Federal Housing Oversight.

Who Invests in Condo Hotels?

• Condo hotels attract many different types of investors. Clients overseas, enticed by the falling dollar and booming real estate markets, like being able to secure their money in the US market and have their property managed by the hotel. Retiring baby boomers enjoy owning a luxury vacation home with first class amenities. Corporations, too, are considering condo hotels as an alternative to corporate housing due to their prime downtown locations in popular cities and for their facilities that can accommodate meetings and conventions.

What are the Advantages?

• Condo hotel owners enjoy almost all the privileges a first class hotel has to offer. From concierge services, gourmet dining, recreation rooms and club houses, it's all at your fingertips with the push of a button. The condos are delivered fully furnished. Investors also benefit from being exceptionally located in prime real estate areas.