What is a condo-hotel?

Condo-hotels are popping up in major cities all over the country, but some may be unfamiliar with what they exactly are. Not to be confused with a time share or a fractional unit, a condo-hotel or condotel as they are sometimes referred to, is a type of residential building where some or all of the condo units are put up for sale to individuals. These purchasers then own units that can be rented out as hotel rooms through an onsite management company (usually) when not in use by the owner. The owner then has an added benefit of having a residence in another city. The owner also has access to all of the hotel amenities as well.

Developers also benefit as well. Traditional hotel projects are harder to finance and the pre-sales of units provide additional cash during construction, although there is a downside as well. Because of the nature of the project, certain types of advertising are not allowed under US law. Developers have to be careful when advertising their project to potential buyers. Developers have been sued because of their advertising practices in the past, so there is some risk involved, but that hasn't stopped the flood of new projects.

Condo-hotels grew steadily in popularity in South Florida for the last several years. They can also be found in other parts of the country, mostly in major cities like Chicago, Honolulu, Las Vegas and New York City. Las Vegas is a late comer to the condo-hotel market, most Las Vegas condo-hotels were completed in the last few years, and a few more are under construction.

Vacation destination cities are a natural fit for these types of properties and make a great alternative to purchasing a typical vacation home or regular condominium. Unlike a timeshare or fractional unit, the unit is wholly owned by the buyer and can be used as often or as little as they like. Maintenance repairs, booking, cleaning, etc is handled by the management company, usually onsite through the property managers.