Condotels- The Up and Coming Investments
The term “Condotel” (Condo-Hotel) has been thrown around the past couple of years as an up and coming hot topic project to get started in. So, what are they? A condotel is a project that is run like a hotel with the whole package that a hotel has – front desk, cleaning services and more. Then how does it differ from a hotel? This is where it gets interesting. Unlike hotels, each unit is usually owned individually. Owners of the units can decide to place their unit in the “hotel’s” rental program where it’s rented as a room like a typical hotel by a guest.
Why Condotels Are The Next Big Hot Topic In Short-Term Rentals
The rising popularity of short-term rental properties makes them an exciting option for real estate investors, especially to help grow their portfolios. Condotels are not subject to the same laws that apply in New York for residential short-term rentals, making Condotels an excellent opportunity for new investors who have saved and are looking to buy their first property. Not only do investors benefit from cash flow, but travelers can rent units just as they would with a regular hotel room. They get all of the same benefits such as various amenities they would find in a vacation rental or hotel. They usually come with some added benefits that a regular hotel room would not in terms of space – full kitchen and living room. Additionally, they still have access to concierge services, gyms, etc. The most successful Condotels are located in larger cities or big tourist destinations. This means during a busy season, there is almost a guarantee of rental, and if not rented, can be enjoyed still for personal use. It’s a win-win situation.
The Future of Rental
Short-term rentals have been on the rise for years. Stats show that for multiple years, the US has spent more on Airbnb’s than on hotels. Even during COVID-19, the vacation rental market has kept on an inclining trend. Because of safety with everything going on this year, those looking to travel feel more comfortable to rent out a vacation rental than to stay at an open hotel with other people. This allows them space, privacy and the ability to feel calm. Since COVID, we see short-term rentals bouncing back faster than the hotel industry has. This shows that even through the worst of times, there is a steady growing market in short-term rentals, especially Condotels. Let’s not forget, many big hotels have already started renting out short-term rentals within, since it was such a growing market. To list a few: The Plaza, The Pierre, Waldorf-Astoria, Casa Hotel and Residences are just a few of the most well known hotels that have transformed their business models to short-term rentals and Condotels.
Short-term rental Condotels are an up and coming future for the real estate market. There are a range of age groups that are interested in these rentals to allow them the ability to travel more often. We can expect a steady incline once COVID-19 allows for more travel in the upcoming future!