Globally, condo hotels also known as buy-to-let hotel room schemes, condotels and apart hotels, are a relatively new concept in luxury second home ownership and vacation living with mainstream hotel services available, including the use of facilities like state of the art fitness centres, full service spas, fine dining and concierge services geared to discerning clientele. Typically, investors purchase a stunning suite or apartment residence in a four or five star, luxury, high rise hotel, and receive around 50% of the accrued rental revenue after sharing it with the hotel as non-resident owners. This enables them to offset and share running costs as an option in ownership programmes operated by the major hospitality hotel chains, making vacant room rental income mutually attractive. Many fractional ownership condo schemes also guarantee around 28 days personal usage per year for free.
Within the major condo hotel rental programmes, investors have deeded ownership and can usually use their suite or apartment when they desire giving the management company reasonable prior notice of their owner reservation. Condo’s within multi-national hotel chains are generally more desirable and prestigious.