What are condotels / Condo Hotels / Hotel-Condos?
The following information will discuss the differences between a condo and a condotel (also known as condo hotels and hotel-condos). Many people love getting condos because they are convenient, and they are great for those perfect getaways, as well as providing an investment opportunity and a second home with minimal upkeep. The term condotel is relatively new to the real estate business, but it is becoming an important term for those looking to buy a condo in a resort region. So, the arrival of the condotel brings with it a whole new perspective on what it means to own a condo, which will be detailed in this article.
What is a condotel / condo hotel / hotel-condo?
A condotel is different from your traditional condo in that it is located at a resort. Condotels are owned and operated by a hotel company. So, each unit at the resort is considered a separate home owned by an individual, but the entire set of units are collectively considered part of one hotel chain—much like Westin, Ritz-Carlton and Villa La Estancia. Unlike a regular condo, condotels are marketed like they are a part of a hotel community, with all the benefits that might bring to owners.
Therefore, the hotel acts as the condo management company and is responsible for your stays. You also get premium hotel services like room service, hospitality from the staff, and access to the hotel’s spa and gym. Most standard condos don’t offer these types of services.
the hotel acts as the condo management company and is responsible for your stays
Advantages of a Condotel Over Condo Ownership
There are plenty of reasons why people are gravitating towards condotels over regular condos these days. For instance, there are a lot of things you don’t have to worry about when you buy a condotel as a second home. These units are completely furnished, and you don’t have to worry about finding people for maintenance services because it’s all taken care of by the hotel company. Therefore, much of the decision-making that you have to do as a homeowner is eliminated because of the services provided by the hotel. Your place is kept clean, and you can benefit from the hotel renting out your place when you are not on the schedule.
If you don’t use the condotel that much, then expect the property to depreciate rapidly (from 39 to as few as 5 years). This also means that in the years you use it, you will receive tax bill reductions. Discuss the financial issue of your condotel depreciation to get a better understanding of your tax situation.
Condotels are Easier to Rent Out
Just imagine if your condo offers so many fabulous services provided by the hotel, then you will find it much easier to rent your condo when you are not there. Likewise, most condotels offer rental services as well as property management so that you really have very few responsibilities. You also gain the benefits of the hotel’s marketing strategies making your investment much more secure.
These pertinent facts about the differences between a regular condo and the condotel should help you make a more informed decision about which type of condo will be the most ideal for your situation.
Image Source: Villa La Estancia Residences Riviera Nayarit