A condo hotel, also known as a condotel, are hybrid properties that combine certain condo type features with hotel ones. Owners of condo hotel units own their unit and can use it for personal use, but when they are not using it the unit essentially converts to a hotel room. Condo hotels are operated by hotel management companies who overseas the leasing of units for the building. Condo hotel units have their advantages as well as their disadvantages.
Advantages of Condo Hotels
* Owners don’t have to worry about maintenance or other issues when they are not there
* When owners are not there the unit will provide them with revenue
* Professional and experienced management
* They get to enjoy typical hotel services when they are there
* Typically cheaper than comparable condo units
Disadvantages of Condo Hotels
Claim up to $26,000 per W2 Employee
- Billions of dollars in funding available
- Funds are available to U.S. Businesses NOW
- This is not a loan. These tax credits do not need to be repaid
* Can be harder to resell unit
* Often units don’t have things like kitchens
* Management company takes a large percentage of the revenue, often 35-50%
* You don’t have a choice but to use the hotel management services
* Revenue generated typically not enough to service debt expense
Condo Hotel Associations
The main association for owners and developers of condo hotels is NACHO or the National Association of Condo Hotel Owners. NACHO is a non-profit organization which was established in 2005. People interested in pursuing condo hotel ownership should visit NACHO’s website as it is full of helpful information and statistics. www.nacho.us
Sources:
www.nacho.us
