Posts Tagged ‘Condo’

Just What is Fueling the Orlando Vacation Condo Boom

Overbuilding Leads to a Glut in the Condo Market

However; it has been the slump in the real estate market and home values that has fueled the recent rush to the Orlando area. Who could have “thunk” it, but now with so many unsold luxury condos languishing on the market in the greater Orlando area, there has been a resultant spontaneous combustion in the Orlando vacation condo rental market.

Fierce Competition for Your Business

Old real estate sales offices have had new life breathed back into them as home and vacation condo rental agencies and competition is fierce. Condo owners and rental agents are engaged in an ongoing battle of brinkmanship, with newer and better offers appearing each and every week, as they all try to out do each other.

Cheaper than a Hotel or Motel

Its gotten so bad that traditional lodging establishments been backed against the wall by deals on fully furnished luxury condos with completely outfitted kitchens and swimming pools that in fact rent for less than most of the hotels and motels in the greater Orlando area.

Just Imagine

Also, most all of the agencies that deal in Orlando vacation condos have the same bags of perks such as discount coupons that offer cut rate deals on dining and entertainment that hotels and motels in the area are offering. Just imagine the looks on peoples faces who have booked a week in a hotel in Orlando, only to find out after they have arrived, where their family could have been staying for less money.

Benefits of a Condo Hotel Investment

A condo hotel investment is a way to own vacation property without the hassle incurred with other property ownership. Condo hotel property has become very popular in Orlando in recent years. This is a top vacation spot in Florida and there is high demand for rentals. With a condo hotel, you will get more money for rentals than you would with many other types of property.

Condo hotel units are larger in Orlando than in most large cities in Florida, such as Miami and Fort Lauderdale. In addition, they tend to be less expensive per square foot here than in south Florida. In Orlando, prices are between four hundred and seven hundred dollars per square foot. In south Florida, this price jumps to between one thousand and two thousand per square foot.

How a Condo Hotel Investment Works

Condo hotels are high rise, luxury properties. They are often run by large hotel companies, such as Hilton, Trump, Hyatt or Four Seasons. They have the amenities and services that are typical of five star hotels. Most have spas, pools, fine dining, laundry service and room service.

You purchase the condo and use it when you want to vacation in Orlando. The condo hotel has a rental program. The company takes care of renting, maintenance and cleaning. They also operate the services offered by the hotel. In return, the company keeps a percentage of the rental fees.

The best deals can be found prior to the beginning of construction and in the very early stages of construction. After this phase, the cost of ownership increases dramatically. Some tend to sell out fast, so you need to get in early to get the best price and be sure to get a space in the hotel of your choice. This is especially true in areas with a high rate of tourism, such as Orlando and other large cities in Florida.

Who Pays What in a Condo Hotel Investment?

There are a variety of expenses involved in a condo hotel. Some of these fees are paid by the owner and others are paid by the operator of the hotel. The owner pays all the taxes and insurance on the unit. Any improvements that are needed, or wanted in the unit are the responsibility of the owner as well. If you need new tile in the bathroom, you will be responsible for paying the bill for the installation.

The operator pays the operating expenses of the hotel. This includes all administrative costs and marketing, such as advertising the units for rental. In addition, the costs incurred for housekeeping are paid by the operator. This includes the salary of the cleaning personnel, supplies and other equipment needed to keep the hotel in good condition.

When you purchase the property, you will need to sign an owner’s agreement. This should stipulate the amount of money you get and the company gets for rental on the condo. The agreement should spell out when you plan to use your condo. How much time will you be staying there? If you want to add more time, how much notice do you need to give the company? This is important because if the unit is already rented, you may not be able to stay there.

Top 10 Frequently Asked Questions About Condo Hotels

Have you considered the purchase of a second home but hesitated because you didnâ??t want the hassles of ownership or you couldnâ??t justify the expense of a place youâ??ll probably use just a few times a year?

Then consider a condo hotel. You might find that this new type of real estate is the ultimate, hassle-free vacation home.

1. Exactly what are condo hotels?

Condo hotels are typically high-rise, luxury properties in popular vacation destinations, such as near beaches, golf courses, casinos and theme parks. They are operated by prestigious hospitality companies like Hilton, Starwood, Trump International, Four Seasons, Hyatt, Ritz-Carlton and Sonesta.

While to guests they may look like a regular hotel, the suites are individually owned as condos. The owners can use them when they want and place them in the hotelâ??s rental program when theyâ??re not there, sharing in the revenue their condo generates.

An on-site management company takes care of everything from renting out the unit to operating and maintaining the property. For that reason, condo hotels are often referred to as problem-free vacation homes.

2. What are the typical amenities found at condo hotels?

Of course, every condo hotel is different, but these properties usually offer the amenities and guest services youâ??d find at a hotel of four-star caliber or better.

These can include pools, spas, fitness facilities, business centers, restaurants, night clubs, retail stores, meeting facilities, concierge services, 24-hour security, room service, valet parking and daily housekeeping.

The individual condo hotel suites are usually slightly larger than your typical hotel room, professionally furnished, and have kitchens or small kitchenettes.

3. Where are condo hotels found?

The condo hotel concept started in Florida, but these days condo hotels are popping up all around the U.S. and the world. They are found in popular vacation destinations such as Miami Beach, Orlando, Las Vegas, Myrtle Beach and throughout the Caribbean.

Each location has something unique to offer. Decide what you love to do when on vacation, and find a condo hotel to fit your needs.

4. How does a condo hotel differ from a timeshare?

With a timeshare you are purchasing one or two weeks of usage of your vacation home per year, and itâ??s usually the same weeks each year. That doesnâ??t allow you a lot of flexibility with your vacation schedule, unless you participate in an exchange program.

A condo hotel unit provides you, the owner, deeded whole ownership. You can use your vacation home as often and whenever you want, (although some restrictions may apply if you choose to participate in the optional rental program).

5. What expenses should be expected when owning a condo hotel?

The individual condo hotel unit owner typically pays for real estate taxes, insurance, capital improvements and his or her debt service.

The on-site management company pays operating expenses such as housekeeping, front office, maintenance of common areas and amenities, marketing and guest services.

6. Who operates the rental program in a condo hotel?

The on-site management company runs the rental program. Their job is to promote the property and generate a steady flow of guests to rent the units.

One of the key benefits to purchasing a condo hotel unit in a major franchise like Hilton, Trump International, Hyatt or Starwood is that its name recognition and multi-million dollar, worldwide reservation system help to keep your room rented and generating revenue year-round.

7. How much revenue does a condo hotel unit generate?

This, of course, varies between properties. Some of the factors that affect revenue are the quality of the property, whether it has a brand name, its location, and even how often the unit is used by the owner as opposed to being placed in the rental program.

Buyers of condo hotel units are advised to be conservative in their expectations and look upon the revenue their unit generates as helping to offset their costs of ownership, as opposed to creating a positive cash flow.

Total revenue is split between the hotel management company and the individual unit owner, usually on a 50-50 basis after expenses, although these percentages can vary.

8. Do condo hotels appreciate like other types of real estate?

They certainly can, and many people feel this is the key selling point of condo hotels. They see condo hotels as investments which, like other types of real estate, can increase in value over time, especially if the property has a good location, is well-managed and offers a full array of amenities and services.

9. How much do condo hotels cost?

Condo hotel prices vary, depending on quality, brand, amenities and location. The range can be anywhere from $200,000 to over $1 million for prime properties.

The highest prices are commanded at upscale locations such as Miami Beach and Las Vegas. In places outside the U.S., like Dubai, Mexico and Panama, for example, quality condo hotel units can often be had for bargain prices because of the much cheaper land and construction costs abroad.

10. Is financing available for condo hotels?

Yes, many lenders now offer financing on condo hotel units. However, the rate is usually slightly higher for this type of residence, because lenders assume more risk on a second home than a primary residence.

10 Reasons Why Condo Hotels are the Ideal Second Home

Condo hotels are taking many resort locations by storm! Operated by renowned hoteliers such as Hilton, Hyatt and Trump International, condo hotels are being built in premier vacation destinations such as Las Vegas, Orlando, the Caribbean, and Dubai.

They often include five-star amenities, making them the ultimate vacation getaway. As real estate, they offer appreciation potential. Combine all these qualities with the ability to generate rental income, and you’ve got yourself one good deal.

Is a condo hotel right for you? Consider these 10 factors to decide:

1. Escape to your second home any time. With timeshares or partial ownership, you can use your condo one, maybe two, weeks of the year. Condo hotels, on the other hand, allow you to use your vacation home any time, given the proper notice.

2. Visit your favorite vacation destination over and over again. Condo hotels tend to be built in fantastic locations. They may be overlooking the ocean in Miami Beach, near theme parks in Orlando, on a golf course in California, slope-side in Telluride, or right on the exciting Las Vegas Strip.

3. Live in the lap of luxury. Enjoy premier living right in your own second home! Your condo hotel unit will be delivered designer furnished. But it’s the resort’s amenities that really make it special: the brand-name spa, resort-style pool, gourmet restaurants and state-of-the-art fitness center, all right on-site. Plus, don’t forget the hospitality extras, from daily housekeeping and room service to 24-hour concierge assistance.

4. Relax with hassle-free ownership. Don’t have the time or desire to handle the upkeep of your property? Condo hotels offer a built-in property management team that takes care of everything, from maintenance and housekeeping to operation of all the amenities.

5. Have pride of ownership. With a condo hotel you can possess your very own Trump, Hyatt, Hilton or Ritz-Carlton. How cool is that!

6. Receive rent revenue. When you’re not using your condo hotel unit, simply place it in the hotel’s rental program. The hotel management team takes care of finding the guests, and you’ll get a share (usually around 50%) of any revenue your unit generates. This income can help offset your costs of ownership.

7. Resell your condo unit at any time. With timeshares reselling is difficult to do since you only own a particular week of the year. With a condo hotel unit, you have deeded whole ownership and can resell your property just as you would any other type of real estate.

8. Get in early on the condo hotel craze. Condo hotels are a fairly new type of real estate. As the market increases in popularity, demand for these units will grow. Now is the time to get in at the ground-level phase.

9. Gain appreciation potential. Condo hotels, like most quality real estate in highly desirable destinations, are likely to appreciate. Maximize the appreciation potential by buying your condo hotel unit in the pre-construction phase, when prices are at introductory levels.

10. Diversify your investment portfolio. If you’re looking for an alternative to the stock market, condo hotels offer a means to invest in real estate without assuming the responsibilities of becoming a landlord.

Orlando Leads The Nation In Condo Hotel Development

Orlando has jumped to the forefront of condo hotel development with more projects in the works than any other U.S. city. While it wasn’t first on the scene – that distinction belongs to Miami – it has certainly charged forward leaving other U.S. cities in the wake of its construction dust.

Orlando to Become World’s Condo Hotel Capital

Over 25 different condo hotels are now being developed in Orlando and another five to 10 are in the planning stages.

The same qualities that made this dynamic city the timeshare capital of the world – amazing theme parks, fantastic weather, championship golf courses and world-class shopping — are now helping Orlando capture the title of “condo hotel capital” as well.

What Are Condo Hotels?

Condo hotels are fabulously-furnished condominiums located in luxury hotels that offer a wide range of amenities from resort-style pools to full-service spas, fine-dining restaurants and concierge services.

Owners use their condos whenever they’d like. When not using their unit, they can place it in the hotel’s rental program and receive a portion of the revenue it generates, usually about 50% although it varies by property.

Because the hotel is typically managed by a professional hospitality company like Hilton, Hyatt, Sonesta, Trump or Starwood, owners can feel confident that their vacation home is being well cared for and is being well marketed to potential guests.

Who’s Buying Orlando Condo Hotels?

The condo hotel concept is popular in Orlando with families who want an exciting place to vacation with their kids, empty nesters and seniors who love golf and year-round good weather, and international buyers who want a U.S. vacation home but are wary of trying to manage and maintain a property from overseas.

In Orlando, estimates are that over 40 percent of the condo hotel units sold are to U.K. buyers, although German and Latin American buyers have also shown an affinity for the area.

How Much Do Orlando Condo Hotels Cost?

Orlando, more so than any other U.S. city, offers a wide range of condo hotels at various price points. The budget-minded consumer can find properties in the $100,000 to $200,000 range. Many of these condo hotels are actually conversions of existing hotels.

Middle-of-the-road properties are well-located usually within close range of the area’s popular theme parks and offer a very comfortable vacation home in the $200,000 to $500,000 range.

At the very top-end of the scale are five-star, amenity-rich condo hotels that offer everything from on-site water parks to world-class golf courses to Las Vegas-style entertainment venues. Units at these condo hotels can cost from $500,000 to upwards of $1,000,000.

Are Condo Hotels Investments?

While condo hotels are primarily marketed as a lifestyle and vacation product, they are also real estate. In major vacation destinations like Orlando real estate appreciation has been significant and sustained for many years. People who buy a condo hotel unit in Orlando for that reason often do so as a means to diversify their portfolio and look forward to selling their property at a profit.

How Do You Choose the Right Orlando Condo Hotel for You?

Realtors who specialize in condo hotels and are personally familiar with the Orlando area can help you examine the pros and cons of each property on the market. They can help you compare amenities, locations, developers, management companies and appreciation potential.

Also, they can tip you off to new properties coming on the market, helping you to buy in the earliest stages of pre-construction when prices are lowest and unit selection is greatest.