“Own” Your Favorite Hotel Suite
Friday, August 4, 2006
Condo hotels offer timesharing with more availability and flexibility
Owning a condo hotel suite provides you with guaranteed accommodations in your favorite luxury hotel. Unlike a timeshare, condo hotel suites are available to owners for as many or as few weeks as you choose to use them. During the times you are not using the hotel suite it can be made available for rental by the hotel management. It will then be booked like any traditional hotel room. Room rental is typically split about fifty/fifty between the suite’s owner and the hotel itself.
There are plenty of condo hotels available. Developments magazine reported on one recent study which revealed that “70 percent of all new hotel construction has some type of condo hotel component.” Timeshares, vacation clubs, and fractionals like the San Francisco Ritz Carlton renovation project I wrote about in June are no longer the only options in the world of vacation ownership.
Condo hotels are proving to be a great idea for hotel developers. Units can be pre-sold before construction, thereby reducing the financing the developer needs to secure. Unlike timeshare, where the owner pays for only the days and nights he or she schedules to use, condo hotel suite owners bear the full upfront cost and then seek to offset that cost by using their property as a rental.