The condo craze

Much of the condominium hotel market in the US started in Florida. Residences cost between 600,000 and 800,000 for a studio. 1 bedroom apartments start around $750,000 – $1,000,000. 2 bedroom apartments start in the 1,000,000 price range.

These permanent residences feature all the furnishings and amenities of a luxury hotel, including world-class restaurants, 24-hour concierge, security, valet, housekeeping, and room service.

Joel Greene of the Condo Hotel Center says that a rental option provided by the condo hotel management company allows owners to receive a portion, often around 50 percent, of the rental income for their specific unit when they are out.

Taylor says developers favor waterfront, mountainside and downtown areas with strong demand for luxury accommodations. Myrtle Beach, South Carolina; South Florida; and Las Vegas have fast-growing condo-hotel markets that favor high-end travelers and boomers looking for a pied-à-terre with lots of amenities. Chicago, Washington DC, and Phoenix are beginning to enter the condo hotel market, most notably the Trump Building in Chicago, studios start at $800,000.

“Boomers are looking for a vacation lifestyle with spacious accommodations, dining activities and entertainment,” says Taylor. “They demand extra services and luxury amenities.”

This is how the Condo hotel concept works. You buy a condo/hotel in a world class hotel. Use the residence whenever you want. When you’re away, include the residence in the hotel rental program and share the revenue with the hotel. The hotel management company handles all administrative aspects, such as cleaning, rent and maintenance.

These residences offer the best of both worlds, a hassle-free residence in a world-class luxury hotel with rental income that helps offset the costs of a second or third home. As well as the appreciation potential.