You may have heard all the buzz about the newest type of vacation home investment, condo hotels. These are condominiums located in four- and five-star hotels in cities like Miami, Orlando, Las Vegas and Chicago. Owners use their condos when they'd like. When not using their unit, they can place it in the hotel's rental program and receive a percentage of the revenue it generates.
How do you choose a condo hotel unit that meets your desire for a vacation home and is also likely to produce a healthy revenue and appreciate down the road? Consider the following seven questions when evaluating a condo hotels:
1. Is a condo hotel right for you?
Condo hotels are not your typical second homes. They are fabulously-furnished condominium suites in some of the most famous hotels and resorts around the country. The properties are usually large, high-rise, luxury hotels and come with premium amenities like valet, concierge and maid service. Prices can range from $250,000 to over $1 million for prime properties.
2. Is the condo hotel well-located?
Consider whether the property is located in a popular vacation destination, one that is likely to do a healthy tourist or business trade regardless of economic factors.
Also, you must be sure you yourself like the location. Does it offer you the ocean view or golf course access you always dreamed about for your vacation home? If you'll be flying to this vacation home, how close is it to a major airport?
3. Does the condo hotel have a major franchise?
The key to a successful condo hotel investment is the hotel operator. The better the operator and the franchise, the more likely the success of the property.
A condo hotel with a name brand like Ritz-Carlton, Hilton, Starwood or Trump is likely to generate more revenue than a non-brand because it can charge higher room rates and benefit from international advertising and a centralized reservation system.
4. Will the condo hotel receive traffic from any nearby attractions or entertainment venues?
A condo hotel that is near a convention center, a theme park or cruise port will benefit from proximity to these high-traffic venues.
5. Does the condo hotel have any on-site amenities that will draw guests such as a well-known health club, spa, fine dining restaurant or golf course?
You'll want to choose a condo hotel that has amenities you'll enjoy using and also are a draw to attract hotel guests.
6. Does the individual unit that you're considering in a condo hotel meet your needs?
Does it have enough bedrooms, enough square footage? Does it have a kitchen? (Some do, some don't.) Does it offer an appealing view? Is it furnished to meet your tastes? Does it offer any owner storage?
7. Will the condo hotel unit appreciate?
While personal enjoyment should be your primary reason for considering a condo hotel purchase, it's certainly worth thinking about whether the property you want has good appreciation potential.
Look at surrounding properties and area appreciation rates. Does the condo hotel have lots of competition? Is it different or better than area properties? How has the demand been since the property first came on the market?
A realtor who specializes in condo hotels and is familiar with the area in which you're looking can often help you determine if the condo hotel you're considering has good appreciation potential.
By Joel Greene
President, Condo Hotel Center, www.CondoHotelCenter.com
About the Author:
Joel Greene is the president of Condo Hotel Center in Miami, Florida. Visit his website at http://www.CondoHotelCenter.com which is a clearinghouse for listings, information, and photos of condo hotels. At his website you can sign up for his Property Alert newsletter which notifies readers of new condo hotel properties coming on the market and provides useful information about condo hotel developers and trends.
Branded Email in the Real Estate IndustryYou're in the real... Read More
Location:Frequent travelers will absolutely delight in this town! As part... Read More
As somone who has lived in both places, I can... Read More
A very smart attorney I know paid $7,000 for a... Read More
Selling property privately has many advantages over using an estate... Read More
The physical senses of buyers respond to a home's design,... Read More
If you want to buy a house but don't think... Read More
Whether you're a first-time buyer, selling your current home or... Read More
The voluntary Model Green Home Building Guidelines are designed to... Read More
Is your pet worth $100,000? It may be if you... Read More
Why without asking your boss? Two reasons, one, he or... Read More
So you've decided you want to own a home and... Read More
My husband and I were eating breakfast at the Good... Read More
Property Condition - Seller's What to Expect During the Inspection... Read More
You'd like to buy a vacation home, but you're not... Read More
Unlike traditional residential real estate mortgages, real estate investment financing... Read More
I teach students how to set up a new business... Read More
Buying real estate can start with a look in the... Read More
There is a relatively new and not always well understood... Read More
Here are some Handy wee Tips to help you Sell... Read More
Ireland has recently witnessed an upsurge in the number of... Read More
First, let me state that I'm not an attorney and... Read More
Questions Sellers Should Ask in Agent Interviews:1. Is your license... Read More
Buying Off PlanIt can be difficult to decide when every... Read More
Owning investment property is a tremendous wealth building strategy. Thousands... Read More
Lighting is the most important detail of interior Design Psychology... Read More
The real estate bubble is a hot topic today; annual... Read More
In days of booming real estate, you would think that... Read More
Advice to Help When You're Buying a HomeFirst time home... Read More
When selling your home, you'll want to fetch the best... Read More
Real Estate: Reasons and Priorities for Purchasing Property. It's not... Read More
Chapter OneShe reached the phone on its second ring. "This... Read More
In the superheated San Francisco Bay Area property market, foreclosed... Read More
Real estate investing professionals look for all possible tax deductions... Read More
If you're a foreign national thinking about investing in the... Read More
The value of the real estate you own, whether it... Read More
Fractional shares ("fractionals") are sometimes confused with other vacation property... Read More
One of the most common statistics used when gauging the... Read More
Real estate investors familiar mantra location, location, location are nervously... Read More
To own a home is one of the dreams every... Read More
You've searched high and low around town looking for that... Read More
Satisfying and lucrative real estate investment depends upon your correct... Read More
As sure as the spring flows at the Fountain of... Read More
One of our investor students told us of an interesting... Read More
Making money with "fixer-uppers" isn't about repairing drywall or planting... Read More
The housing market has exploded in the last five years,... Read More
With today's planned lifestyle communities, golf and boating enthusiasts have... Read More
Financial ConcernsOf the three types of income property, industrial property... Read More
With the never-ending changes in our Real Estate Markets real... Read More
Maybe you're moving to a larger home to accommodate a... Read More
If you're thinking about selling your home and moving up,... Read More
"Begin With The End In Mind"I first heard the phrase... Read More
As an ASP Home StagerŪ I know how important curb... Read More
I saw the ads in our small-town newspaper for years... Read More
Signage, though quite fundamental in nature, plays an important role... Read More
Selling your home requires some thought and a clear plan... Read More
Most business owners will, at some point, want or need... Read More
As you grow older, the issue of wealth building comes... Read More
Be a slumlord? Okay, I got your attention, now the... Read More
Are you profiting from O.P.P.? If not, why not? We... Read More
Every one should have a home inspection before purchasing any... Read More
Many real estate investors enjoy "flipping houses," or buying and... Read More
When trying to sell a home, silence isn't always golden... Read More
Sheriff's Deputy Ted Rasmussen was thinking about Carrie-his pregnant waitress... Read More
Buyer Broker Agreement? What's that? Most agents don't ask their... Read More
This home selection checklist is a tool to help you... Read More
Real Estate |