When SUVs appeared on the scene, some people got excited, and some turned up their noses. There were debaters who questions and championed their usefulness, while some people just stayed on the fence. We wondered: are they a fad or are they here to stay?
This is also the case with another hybrid: the condo hotel or condotel, as some call it. As hybrids go, this one combines many of the good and bad features of both ancestors.
Because they combine the luxury of high-end hotels and the spaciousness of a condo, you can expect to be more than comfortable. You get the conveniences of a home, like appliances, that don’t get in every hotel. You can also take advantage of services-like a concierge, restaurant, and spa-that few people have at home.
One of the prime motivations for buying into a condo hotel is also one of the major factors in all real estate: location, location, location. As the owner of a unit in a condo hotel, you would have access to lodging in the destination of your choosing. You also reap the benefits that come when this same property is rented out to others. Staff is charged with booking reservations for your property. A prime location means that your prospects for sizeable rental income are very good.
On the flip side, the popularity of the destination means that you may not be able to use your unit whenever you want. If someone else has booked the time slot you want, you have to choose another, even though you are the owner. Travel hot spots attract business and developers, so if similar condo hotels go up, you may find your rental income actually decreasing when travelers have more choices.
There is a condo association and you will have to pay fees. However, the staff coordinates repairs, so you don’t have to worry about that. The good news is that you do not have to pay hotel taxes when you stay in your own unit.
Municipalities are still not sure how to regulate them, although some are starting to put limits on how much time an owner can spend in their own unit (typically 60-90 days).
