What is the condo hotel concept? Condo hotels are typically high-rise, luxury hotels operated by big name hotels. Condo hotels have condos that are sold to individual investors who may use their unit as a vacation home whenever they like. When they're not using their unit, owners have the option of participating in the rental program. The owners rental revenue is shared with the hotel operator and helps offset the owner's condo expenses.

What are the benefits to the condo hotel buyers / owners? The condo owners will have luxurious vacation getaway homes in premier locations at their disposal. Condo Owners who choose to place their condo hotel units in the property's rental program receive revenue which helps offset the expenses of the condo ownership. Most condo hotels have wonderful features and services that enhance their appeal to potential buyers as well as future renters. Typical amenities are spas, health and fitness centers, fine dining, business centers and more. Services could include valet, concierge and housekeeping. Condo hotels offer hassle-free vacation home ownership. The on-site management company takes care of all upkeep, maintenance and interaction with renters.

Owners of condo hotel units have the right to resell their unit at any time. They keep any profits derived from appreciation. Thus condo hotels combine vacation home ownership with investment potential.

What is the role of the condo hotel operator? The operator of the rental program, in exchange for a share of the revenue, markets the units as a hotel, takes reservations, operates the front desk, maintains the property and provides the services hotel guests expect, such as housekeeping, food and beverage, and concierge.

Can condo hotel owners rent out their units themselves and keep most or all of the revenue? Most condo hotel owners do rent out thier units, but doing so defeats the full benefit of the condo hotel concept. Condo hotel programs were created to be worry free ownerships. Most owners prefer the professional management company to find and handle all renters. In addition, owners are likely to receive a higher level of rental income by participating in the property's rental program which is administered by a recognized professional operator that can capitalize on the hotel's national affiliation, its brand name, its sophisticated reservation system and management expertise.