One of the fastest appreciating kinds of property is the condo hotels or the apartotels. People purchase condominiums that have been developed by world-class hotels or resorts and use them according to their desire. When they are not using the condo, they have an agreement with the hotel to rent the condo under the hotel¡¯s name and receive a percentage of the revenue. The hotel is responsible for the operational expenses and maintenance, whereas the condo owner is usually responsible for its taxes, insurance, and improvements.

Advantages Of Investing In Condo Hotels 

People are investing big time in these condo hotels that can cost anywhere between $200,000 and $1 million is that they get to buy a property that is fully furnished in five-star or four-star style, the hotel takes care of marketing, advertising, renting and maintaining the property, you get an accurate forecast of the rental income as well as the advantages of using the hotel facilities such as spas and fine dining while you occupying the condo. You also get higher rental rates than you will get if you buy a local condo or single-owner property. It is not only that condo hotels are one of the fastest appreciating properties. Condo hotels offer hassle-free ownership, which is a great advantage, as well as the fabulous locations, making condo hotel an ideal getaway for those who invest in them.

The concept of condo hotels is attractive not only to Americans but luring many South African and European investors to invest in America. Typically, condo hotels have 250 to 500 units in all and most surprisingly sold out in the pre-construction stage itself. Las Vegas, Miami, Fort Lauderdale, and the Caribbean islands are popular condo hotel destinations. Four Seasons, Hilton, Starwood, Rosewood, Setai, Ritz Carlton, Sonesta, and Trump are some of the leading franchises.

You have to be careful while investing in condo hotels, as the more amenities, such as spas, fitness centers, pools, restaurants, bars, valet, concierge and housekeeping, that the hotel offers the more the property appreciates as well as enabling higher condo rental rates. Oceanfront properties are much in demand, as are condos on the Las Vegas strip on account of its casinos. As luxury hotels are franchising these condos, the individual owners need not worry about finding renters as they have state-of-the-art reservation systems and so much demand that the condos are almost always booked.

There are certain drawbacks, such as some condo hotels remain open only a few months in a year and the owners are allowed to use the property as well as rent it only during those months. Yet other hotels charge the owners for any damages or repairs to the property, or require the owners to replace or change furniture every couple of years. Some condo hotels require the owners to give at least 50 to 60 days notice before they occupy the condo, charge them a daily housekeeping fee of $30 to $50, and apply the hotel's check-in and check-out times. Owners do get a tax benefit by investing in condo hotels but will forfeit it if they stay for more than 2 weeks in the condo. 

People see investing in condo hotels as a safer option than investing in the stock market or timeshares. They get to use the property whenever they choose and get the added benefit of utilizing the hotel's management services to assure a continuous supply of renters when they do not occupy the condos. They have to work out an agreement with the hotel regarding the terms of usage, frequency of usage, and details such as who is responsible for any repairs or damages that may occur to furniture. The condo owner usually gets 50% of the gross rent. 

Buying a condo hotel is no longer difficult, as banks and other lending units have acknowledged it as a quickly appreciating sector of real estate and are thus making available easy loan structures. It is like investing in a second home in a dream vacation destination with all the luxury offered by 4- and 5-star hotels. The best time to invest in condo hotels is preferably the pre-construction stage because the rates are ever increasing in proportion to the demand. Some people are skeptical, though, about the resale value of these condo hotels because it is still a relatively new market. Wait and watch is the current policy. Some believe that there is not going to be a lasting market for condo hotels, as tourism is not improving much.

If you are interested in owning a world-famous piece of property, desire to be pampered by five-star luxuries, own a hassle-free high rental property, condo hotels are your perfect choice. Condo hotels are one of the fastest appreciating pieces of property!

 

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