Timeshares Vs. Condo Hotels For Vacation Home Ownership

Condo hotels, also known as condotels, are a relatively new concept in vacation home ownership. They allow individuals to own condos in luxury hotels and have access to all the amenities of that hotel. When not using their condo unit themselves, owners have the option of placing it in the hotel's rental program and receiving a percentage of the revenue it generates.

Because the condo hotel concept is so new, it's often confused with timeshares, a popular vacation home option that has been around since the 1970s. In reality, condo hotels have many qualities that set them apart from timeshares and make them appealing to a unique segment of the second home market. Here's a comparison between these two types of real estate investment.

FLEXIBILITY IN USE

Timeshares - When you purchase a timeshare, you choose not only a set location but also a specific week or two that you will use your vacation home every year.

Condo Hotels - With a condo hotel, you have flexibility to use your unit whenever you want. Keep in mind, however, that some condo hotels do have living restrictions that prevent you from making your condo a permanent residence.

AMENITIES

Timeshares - The average timeshare has a community pool and some common areas.

Condo Hotels - Condo hotels have many of the amenities you would find at luxury hotels. In addition to a pool (or pools), there is probably an on-site restaurant (possibly several), a lounge, a full-service spa, a state-of-the-art exercise facility, a poolside bar, etc.

FURNISHINGS

Timeshares ? Timeshares are sold fully furnished. The quality of furnishings depends on the individual development. The cost for the furnishings is built into the price.

Condo Hotels - Condo hotel units are sold fully furnished typically with high-end furniture, appliances and fixtures selected by a professional interior designer. The cost for furnishings is included in the price of the condo hotel unit.

SERVICES

Timeshares - In a timeshare, you are responsible for your own housekeeping and unit upkeep during your stay.

Condo Hotels - You get daily housekeeping as you would in a luxury hotel. You have access to room service, concierge services, maintenance services and check-in services. The vast majority of condo hotels are operated by big-name hoteliers like Ritz Carlton and Hilton, the consummate professionals when it comes to customer service. Most of the same services available at their high-end hotels are offered at their condo hotels.

LOCATION

Timeshares - Timeshares are located in highly-desirable resort areas.

Condo Hotels - Condo hotels are also located in highly-desirable resort areas.

PRICE

Timeshares - Prices for timeshares vary greatly but are typically lower than condo hotel prices because you are only purchasing one or two weeks of usage. In addition, you do not receive any of the revenue generated during the 50+ weeks that your timeshare unit is used by others.

With timeshares, as much as 40%-50% of the price goes to sales commissions. Why are the sales commissions so high? The developer must maintain a large sales force in order to make approximately 50 sales for every unit (one for every week of the year).

Condo Hotels - You receive deeded ownership to the property. Although more expensive, condo hotels tend to give you more for your money than timeshares. More of your dollar goes into "bricks and mortar" high-quality finishes not sales commissions.

In addition, when not using your condo hotel unit, you can place it in the management's rental program and receive a percentage of the revenue it generates, helping to offset your maintenance costs and debt service.

RENTAL INCOME POTENTIAL

Timeshares - You have the option of renting out your timeshare to someone of your own choosing or placing it in a rental program if you decide not to use it during your allotted week. If you participate in the rental program, you will split the revenue generated with the property's management company. Remember, you are only renting out the one or two weeks per year that you own.

Condo Hotels - Like a timeshare, you have the option of finding your own renters or placing your condo hotel unit into the rental program. You may participate in the rental program and receive a portion of the revenue it generates any time that you are not occupying your unit, whether it be for one night or 365 per year.

POTENTIAL APPRECIATION

Timeshares - Historically, timeshares depreciate in value from the time they are purchased. Values have been poor because of the large number of resales on the market and a continuous stream of new developments competing with them.

The secondary market for reselling timeshares has never taken off. The fact is, most people who buy a timeshare will have it for life, whether they want to or not.

Condo Hotels - Because condo hotels are a relatively new type of property investment, they are limited to just a handful of locales across the country. The supply is small and demand is currently high and growing, all of which contribute rapid and significant appreciation. Another factor to keep in mind when reselling a condo hotel unit is that you're selling not only the actual unit but also the luxury lifestyle that comes with an amenity-filled, high-service property.

Many condo hotels are sold out in pre-construction. Often the developers, sensing the high demand, will themselves raise prices many times before all units are gone.

For example, The Mutiny condo hotel located in Coconut Grove, Florida was the first condo hotel to be built in South Florida. From the time the developer began accepting deposits until it sold out in pre-construction, there were nine price increases. People who bought early did exceptionally well.

Joel Greene is the President of Condo Hotel Center, a licensed real estate brokerage that specializes in the sale of condo hotels. For more information on condo hotels -- including property listings, photos and prices -- visit his website at http://www.condohotelcenter.com Be sure to sign up for his Property Alert e-newsletter to receive notification when new condo hotels come on the market and are available at pre-construction pricing.

expert residential cleaners Lincolnshire ...
In The News:

SEO is dead, and its replacements are here to stay. Here's how to stay visible as AI takes the internet in an unprecedented new direction.
Vancouver architects created a prefabricated off-grid retreat on Keats Island that was helicopter-installed in two days with solar panels and rainwater systems.
Chinese automaker BYD introduced the affordable Atto 1 EV at the Indonesia auto show, offering 75 horsepower and 236-mile range option to compete with gas-powered vehicles.
There has been a recent surge in "quishing" attacks, which are a form of phishing that uses QR codes instead of traditional methods like emails, text messages, and phone calls.
Unitree just dropped its latest creation, the R1 humanoid robot, and people are talking.
Google just announced a partnership with Italian firm Energy Dome to help store clean energy using carbon dioxide in an entirely new way.
Checking your drink for drugs no longer needs to feel like a science experiment. Scientists in South Korea have created a new solution, a temporary tattoo sticker that instantly detects tampering.
Dating safety app Tea suffered a breach of its own, compromising selfies, photo identification, and images from posts, comments, and direct messages within the app.
Researchers at the Swiss Federal Laboratories for Materials Science and Technology (EMPA) have developed an ultra-thin traffic noise absorber that significantly reduces sound levels while occupying just a fraction of the space required by traditional materials.
Known as the Lib Earth House Model B, this single-story home was created using 3D-printing technology and a soil-based mixture instead of traditional concrete.
Google's apps, such as Chrome, Maps, Search, and YouTube, are constantly tracking your activity and sending it to Google.
If your Facebook account was disabled and you believe it was a mistake, follow these proven steps to improve your chances of getting it back quickly.
A new study reveals that AI models can secretly transmit subliminal traits to one another, even when the shared training data appears harmless.
Microsoft is moving toward a password-less future. As part of that shift, it no longer wants the Authenticator app to handle passwords or payment methods.
Halo, the world's thinnest open-source AI glasses, packs more intelligence and capability than any other smartglasses that have come before it.
A coordinated phishing campaign has breached sensitive patient data at several cancer care providers affiliated with a Tennessee-based network of oncology practices.
A recent survey asked 1,000 Americans just how deeply they connect with their pets. Some of the answers are sweet. Others? A little wild.
Microsoft released patches for a SharePoint zero-day bug after hackers compromised over 400 servers worldwide using weaponized exploit chain.
Facebook's parent company, Meta, removed millions of accounts and adopted stricter policies against unoriginal content to help authentic creators break through on the platform.
Scammers have created convincing fake TSA PreCheck sites to trick travelers into paying fees and sharing data, with first-time applicants never paying online being key protection.
A new iOS 18.6 iPhone update fixes a passcode exposure bug, address bar spoofing and multiple memory corruption issues in quick, free security patch.
Paralyzed woman Audrey Crews controls a computer with a brain chip from Elon Musk's Neuralink, demonstrating breakthrough brain-computer interface technology.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Meta removed over 600,000 predatory accounts from Instagram and Facebook while launching enhanced safety protections for teenage users on both platforms.
Facebook crypto scams trick users with fake celebrity endorsements and legitimate-looking cryptocurrency exchange ads that install malware on victims' devices.

Heres How: How To Get The Perfect Florida Condominium Rental

The typical scenario goes something like this: your casual mention... Read More

Five Affordable World Travel Destinations

Five Affordable World Travel Destinations Locations That Offer... Read More

Looking For A Holiday With A Difference?

Fancy holidaying somewhere unusual? How about a 7 day tornado... Read More

The Luxury of a Bahama Vacation Villa

Bahamas vacation villas are the way to go if you... Read More

7 Tips To Avoid Costly Surprises When Travelling Abroad

==> Try to buy your vacation travel package from a... Read More

Whistler, BC: A Great Winter Spot

If you're thinking about planning a great winter vacation, think... Read More

Advantages of Bahamas Packages

For many people, the Bahamas is a dream vacation site,... Read More

European Car Rental - Top Ten Tips for Europe Travel - Tip #2: The Price is Right

When it comes to shopping for something on-line, we tend... Read More

A Road Trip in Cyprus -- Blessed by the Gods

Aphrodite's Hot SpotEuropean Road Trip AdventuresCyprus. Yes, it is a... Read More

Town Homes for ALL Your Pleasure in Orlando, Florida!

Have you ever done something spontaneous? Are you in love... Read More

Is a Vacation Rental Near Disney World the BEST Choice?

Orlando is calling to you and your family to come... Read More

Ten Cheap Vacations

Cheap vacations can still be relaxing, fun and whatever else... Read More

10 Tips for Selecting the Perfect Costa Rica Vacation Rental

Planning a Tropical vacation full of lush jungles, secluded beaches,... Read More

Why Visit Magical Cape Town?

People often ask me why we keep returning year after... Read More

Tranquil Setting for the Weary Traveler

The DeLaunay House, located 185 N. Pioneer in Ashland is... Read More

Honeymoon Cabins in Gatlinburg

Surrounded by the romantic and beautiful Smoky Mountains, a Gatlinburg... Read More

Cottage Holidays

Holiday time is around the corner and its time to... Read More

Villasin Algarve - No1 For Property Investors

The Algarve, and particularly the areas around Carvoeiro, Albufeira, Praia... Read More

A Review of Popular Punta Cana Hotels

Punta Cana is an affordable destination in a magnificent tropical... Read More

A Look at Punta Cana Real Estate

Real Estate in an area like Punta Cana is hot... Read More

Vacationing in Lake Tahoe

Lake Tahoe is a pristine recreational lake area. With high-stake... Read More

Is An All Inclusive Resort Right For You?

Destinations such as Aruba, Cancun, St. Thomas, and Bahamas have... Read More

Travel Journals ? Preserve Your Travel Experiences

Traveling is a great way to escape the rat race... Read More

What You Need to Know About Costa Rica

More than one million tourists visit Costa Rica each year.... Read More

How to Find Town Houses that Will Make Your Vacation to Orlando WONDERFUL

How to find a Town Houses that will make your... Read More

efficient cleaning crew Northbrook ...