Condotel: Definition, Ownership, Pros & Cons

A condotel is a condominium project that is operated as a hotel with a registration desk, cleaning service and more. The units are typically individually owned. Unit owners also have the option to place their unit in the hotel's rental program where it is rented out like any other hotel room to paying guests.

Condotels are typically sold as secondary homes rather than as primary residences.

Condotels are structured as condominium projects, with individual unit owners. The difference is that unit owners can arrange short-term rentals of their units to paying guests, which is further accommodated by full-service staff and amenities such as a check-in desk, housekeeping, and concierge services.

The unit can be used by the owner as a vacation home for personal enjoyment. Many condotels are located in large cities and tourist destinations. Hotel and resort companies develop most condotels and position them to be attractive to travelers. The property will likely include amenities and features that are common at traditional hotels. This could include access to athletic resources such as tennis courts and swimming pools.

When the owner of a condotel unit does not rent out the space, they may reserve it for personal use.

There are pros and cons to condotel ownership. When the unit is rented out to travelers and visitors the rental income can offset ownership expenses. The management for the property will take care of the rental process and will claim a percentage of the rental payments. The rental income may be split evenly between the owner and the management company or the balance may favor the owner.

• A condotel, a portmanteau of condominium and hotel, is a residential development that allows individual unit owners to rent to to short-term guests as if it were a hotel property.
• These properties will have a check-in desk, housekeeping services, a concierge, and many other amenities found in a traditional hotel.
• Unit owners can block off times when they will be staying at their own unit, however most use the condotel as a vacation home.

The condotel arrangement provides access to a cleaning service to care for the home. There is also potential price appreciation for the condotel unit should the owner choose to sell.