They allow individuals to own condos in luxury hotels and have access to all the amenities of that hotel. When not using their condo unit themselves, owners have the option of putting it in the hotel’s rental program and receiving a proportion of the revenue it creates.
Because the condo hotel concept is so fresh, it’s often confused with timeshares, a popular holiday home option that’s been in existence since the 1970s. In reality, condo resorts have lots of qualities that set them apart from timeshares and make them attractive to a unique segment of the second home industry. Following is a contrast between these two types of property investment.
FLEXIBILITY IN USE
Timeshares – When you buy a timeshare, you choose not only a set place but also a specific week or two that you may use your holiday home annually.
Condo Hotels – With a condominium resort, you have flexibility to use your unit whenever you want. Remember, however, that some condo resorts do have living restrictions that prevent you from making your condominium a permanent residence.
Timeshares – The normal timeshare includes a neighborhood pool and some common areas.
Condo Hotels – Condo hotels have lots of the conveniences you would find at luxury hotels. In addition to a pool (or pools), there is probably an on-site restaurant (maybe several), a lounge, a full size spa, a state-of-the-art exercise center, a poolside bar, etc.. )
Timeshares – Timeshares are offered fully furnished. The standard of furnishings depends on the individual improvement. The cost for the furnishings is built into the price.
Condo Hotels – Condo hotel units are sold completely furnished typically with luxury furniture, appliances and fixtures chosen by a professional interior designer. get more information Subscribe our Youtube Channel
Timeshares – In a timeshare, you’re accountable to your housekeeping and apparatus upkeep throughout your stay.
Condo Hotels – You get daily housekeeping as you want in a luxury hotel. You have access to room service, concierge services, maintenance services and check services. The huge majority of condo resorts are run by big-name hoteliers like Ritz Carlton and Hilton, the consummate professionals when it comes to customer service. The majority of the same services offered at their high-end resorts are offered at their condo hotels.
Timeshares – Timeshares are in highly-desirable hotel places.
Condo Hotels – Condo hotels are also situated in highly-desirable resort places.
Timeshares – Prices for timeshares vary considerably but are typically lower than condominium hotel prices because you are only purchasing a couple of weeks of use. In addition, you do not obtain any of the earnings generated during the 50+ weeks that your timeshare unit is used by others.
Together with timeshares, as much as 40%-50% of the price goes to sales commissions. Why are the sales commissions so significant? The programmer must keep a large sales force in order to make roughly 50 earnings for each and every unit (one for each week of the year).
Condo Hotels – You get deeded ownership to the property. Even more costly, condo hotels tend to give you more for your money than timeshares. More of your buck goes into”bricks and mortar” high-quality finishes not earnings.
Additionally, if not using your condo hotel unit, you can put it in the management’s rental program and receive a proportion of the revenue it generates, helping to offset your maintenance expenses and debt service.
RENTAL INCOME POTENTIAL
Timeshares – You have the choice of renting your self out to a person of your choosing or putting it in a rental program in the event you decide not to use it throughout your allotted week. Should you participate in the leasing application, you will divide the revenue generated with the property’s management firm. Remember, you are only renting out a couple of weeks per year that you own.