What is a condotel?

A condotel is different from other condos in that the building or complex is operated as a hotel. 

Units are owned by individual owners who can choose to use the hotels rental program through which the units are rented as to hotel guests.

Since the condo complex is operated as a hotel there are often additional services and available on site such as a check-in desk, housekeeping, and a concierge. There are often additional amenities too such as fitness facilities, pools, and business centers. 

The benefits of a condotel include the amenities, services, and ease of producing rental income. 

The downsides can be higher condo fees and a higher management fee or split of rental proceeds. 

A unit in a condotel can be a great option if you enjoy staying in hotels near the resorts,want to invest in an area where your visit often and don’t want to deal with renting your property yourself.

BUT those extra amenities do come with high monthly HOA fees. So a more traditional condo might be a better fit for you if services like a check-in desk, onsite staff, and housekeeping that you don’t have to schedule yourself aren’t worth it to you or you wouldn’t use amenities like the pool.   

Another thing to consider is that not all lenders can write loans on condotels. You want to make sure you are working with a lender who is familiar with them.  Otherwise you risk a lender thinking that is just like another condo and the deal falling apart in underwriting. 

We can recommend a handful of local lenders who are well versed in condotel purchases.