What a Condo Hotel Is and How They Work

Condo hotels are one of the most exciting segments of the real estate market. It seems like every month, another big brand like Trump or Ritz Carlton is developing a new condo hotel in a major resort or urban destination.

A condo hotel operates just like any hotel you might be familiar with. The only difference is that each room is individually owned. The paying hotel guest would have no idea that the hotel is acondo hotel. From appearances sake, there is no difference.


As an owner, you take fee simple title. So, you own it outright. Just like you would own the home you currently reside in. The difference is that you would have a highly skilled management team overseeing your property and handling all aspects of the daily operation and rental. Condohotels are designed for 100% hassle free ownership.

Of course, as an owner of the condo hotel, your visit would likely entitle you to various benefits and first in line privileges not made available to the average guest. You would be entitled to a truly remarkable visit.

Some have suggested that condo hotels are the best area of real estate to get involved with, short of commercial development. To back up this statement, they point to hard evidence that is readily available – historical appreciation comparisons. It’s not uncommon to find branded condo hotels appreciating at a greater rate than the traditionalreal estate in the same market.

One of the few downsides to owning a condo hotel is that most are not meant for residency. A lot of condo hotels have usage restrictions that limit you to a couple of months of total usage throughout the year. With that said, most people do not buy condo hotels with the idea of residency in mind, so this restriction rarely affects any potential buyer.

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