Condo Hotels, These Second Homes Rank First For Today

#ffffff;" />Torrence just put a deposit on a condo hotel unit at
If home ownership was once the tangible evidence ofNew Oasis at Sea Mist Resort, a to-be-built condo
success in America, today a vacation home is thehotel in Myrtle Beach.
quintessential symbol of truly having arrived. But withCondo hotels are popping up in all sorts of appealing
limited time to spend using and maintaining a vacationdestinations like Miami Beach, Orlando, Las Vegas,
home, the perfect solution has been elusive.Myrtle Beach and the Caribbean. "The concept started
Along comes the condo hotel, a new twist on thein Miami," Greene said, "but it's definitely catching on
traditional vacation apartment or family beach house.throughout the country. We're also seeing condo hotels
These hassle-free, amenity-rich properties could be theappear in Canada, Europe and the Middle East. It is
ultimate second home for today’s well-to-do.becoming a worldwide phenomenon."
"Condo hotels are designer-furnished condominiumIn addition, buyers are coming from all over the world,
suites located in some of the most famous hotels andnot just the U.S. W International, a London-based
resorts around the country," explained Joel Greene,company that markets condo hotels in Great Britain,
president of Condo Hotel Center, a national real estatefinds that U.K. buyers are enchanted with the condo
firm that specializes in the sale of condo hotels.hotel concept.
"Owners have access to all the wonderful amenitiesAccording to Ann Adenius, president of W International,
of a luxury hotel like resort-style pools, upscale diningthey welcome the opportunity to have a vacation
options, rejuvenating spas. They also get the benefit ofhome in the U.S. and have a particular affinity for
all the hotel services like daily housekeeping, valetOrlando, Florida. “Over 40 percent of the
parking and a helpful on-site concierge, everything youcondo hotel units sold in Orlando last year were to U.K.
could want when on vacation.”buyers,” she said. “When you think
Owners of condo hotel units can use their vacationabout it, a condo hotel is perfect for them. They want
home when they’d like. When not in use, theyto go on holiday once or twice a year in the U.S. but
don’t have to be concerned with boarding it updo not want to deal with renters or maintaining their
or maintaining it. That’s because an on-site hotelproperty from overseas the rest of the time,”
management company takes care of all operationalshe said.
issues, including finding hotel guests to rent the condos.Most upscale condo hotels are operated by highly
According to Greene, owners receive a share of thereputable hotel franchises like Hyatt, Hilton, Trump,
proceeds their unit generates, usually about 50%. HeStarwood, Sonesta and Ritz-Carlton that know how to
added that unit owners are more likely to receive acater to buyers with discerning taste and demanding
higher level of rental income by participating in therequirements.
hotel’s rental program rather than trying to rent“When I go on vacation, I want to be
out the condo themselves. “The hotel usuallypampered,” explained Cherise Fuller who
brings to the table a national affiliation, internationalrecently decided to purchase a unit at the W Las
marketing, a sophisticated reservation system, brandVegas condo hotel. “I want to relax, not worry
recognition and management expertise.”about housekeeping, cooking and what to do with the
Many condo hotel owners say they can more easilykids. A condo hotel is perfect. The kids can head to
justify the purchase of a condo hotel unit than athe pool. I’ll go to the spa and fitness center.
traditional vacation home. “I always hesitated toAnd my husband can hang out in the casino.
buy a second home in the past because I knew weThere’s something for everyone.”
could only use it a few weeks out of the year,”While having a home-away-from-home is the primary
explained Mindy Sullivan, who recently purchased areason for purchasing a condo hotel, some buyers say
condo hotel unit in Orlando for her family. “Athey like the concept because of its appreciation
condo hotel was the perfect solution becausepotential. Places like Las Vegas, Orlando, Miami and
whenever we’re not there, the condo is rentedMyrtle Beach have seen double-digit increases in real
out. The income it produces helps cover itsestate values in recent years. Many condo hotel
costs.”owners in those areas are betting the surge in
Prices for condo hotel units range from $200,000 toproperty appreciation will continue. When they sell their
upwards of $2,000,000 for five-star, ultra-luxuriousvacation homes, they’re hoping to make a
homes. They usually include all furnishings andsignificant profit.
appliances as well as impressive design features like“I bought a condo hotel to diversify my
gourmet kitchens, luxurious bathrooms, marble tile andportfolio,” said John Alicia who purchased a unit
hardwood floors.at The Cube condo hotel in Dubai, a place he said he is
Condo hotel buyer, Dwight Torrence, said he alwaysnot planning to spend his vacations. “I was able
wanted a vacation home for his family butto buy a five-star condo hotel for under $300,000.
didn’t want to contend with all the hassles heI’m looking forward to seeing decent annual
remembered seeing his parents face with their lakereturns and an increase in value when I’m
house when he was growing up.ready to sell, probably in a few years.”
“Even though we only used the lake house inNow Alicia, who lives in California, says he’s
the summer, it was a year-round burden. Burst pipes,looking for another condo hotel to buy. But this one will
rotting deck, fading paint, renters who didn’t paybe in the U.S., one he’s likely to use as a family
up – no thank you.” Torrence said hevacation home as well as an investment.
didn’t want the added chores and stress.“I’ve shied away from real estate in the
“When I learned that with a condo hotel,past because I didn’t want to be a landlord and
someone else handles all the work, I knew I’dtake on all the responsibilities that come with it.
found a solution that was right for me.”