A condotel (condo-hotel sounds
better) is a condo built by a hotel developer, usually as part of a larger development.
as The Real Estate Journal puts it:
A condotel looks and feels to visitors like a hotel or
resort, but in these resorts, individuals have the opportunity to purchase individual units. Unlike
a timeshare, where buyers pay for limited use of a resort, buyers of a condotel own their residence
outright and can stay in it, rent it out, or sell it according to their own wishes. In these
communities, in-house management companies rent out the units on behalf of their owners in exchange
for a percentage of the rental income. Condotel owners and their renters often have use of the
resort’s amenities, such as concierge, fitness and spa services. Whether an owner can use the
amenities while a renting guest is staying in the unit depends on the rules of the particular
There is a lot to like about these types of properties, but there can
be problems, too. Some management companies dictate how often you have to rent out the property,
and some won’t allow you to make major changes to your unit’s interiors.
I did a bit of
research on the whole thing, a couple of years ago. From what I’ve heard, you shouldn’t count on
the rents you collect to cover any mortgage – you split the rental income with the manager, 50-50
(most times), plus you’ll be living there, part-time, leaving little chance of collecting lots of
These differ from “fractional share” condos, by the way.
Tips on Buying a Condotel As a Rental Residence – by Jane Hodges, The Wall Street
Additional information: Condo Hotel Center – Joel Greene’s website & business