What is the essence of the condo hotel concept?
Condo hotels are usually luxury hotel properties with strong brand affiliation, such as Marriott, Four Seasons, Starwood, and Hilton hotels. Condo hotels consist of units that are sold to individual investors who may use their unit as a vacation home whenever they like. When owners are not using their unit, they have the option of placing it into an organized rental program managed by the hotel operator. Rental revenue, which is split between the hotel operator and condo owner, can help defray the owner’s expenses, or generate an income stream for the condo owner. According to the National Association of Condo Hotel Owners, nearly half a million people invest in vacation property annually. Based on a report by Smith Travel Research, as of March 2006, Condo Hotel rooms make up 98,142 rooms or 19.5% of the hotel rooms currently under development in the U.S.
