Think of it as buying a condominium, although one that is part of an established hotel. As an owner, you and your guests will get the benefit of services and amenities that you usually find at a hotel more than you generally will find in a typical condominium complex.
The big difference between a hotel and a condo-tel is that a hotel typically has one owner, either individual or corporate, but condo hotels are sold off as individual units. Therefore, a 200 room condo hotel could have as many as 200 individual owners. Vacationers, Tourists, and Hotel Guests often will never know that the hotel has tons of owners because every room in the rental program will look identical to every other.
Condo hotels are sold as second homes and not typically sold as primary residences. Many condo-tels limit the owner's usage of the unit because their unit is wanted and expected to be included in the hotel?s inventory of rentable units. Some condo-tels permit off-site management, generally for less fees, but Owners may soon discover that the more expensive on-site management tends to increase occupancy.
As the owner of a condo hotel unit, you may place your unit into the hotel's rental program where it will be maintained and rented out for you, just like any other room in the hotel. As owner, you receive a portion of the revenue that the rental of your room generates.
Keep in mind that financing from most Lenders may require 20%- 30% down payment as opposed to "regular" condo loan options which may often be 100% financed.
Kristin M. Zimmerman & John F. Friedman
Kaua段 Aloha Real Estate, Inc
Kristin M. Ph: (808) 651-1276John F. Ph:(808) 651-9506