Investing in Preconstruction Condo Hotels

Investing in condo hotel has become pretty popular among preconstruction real estate investors in recent years.  A condo hotel, also called condotel, is almost the same as a condominium. Except that a condo hotel is located in a hotel or a resort instead of a residential building.

In the past two or three years, the condo hotel market has expanded well beyond the traditional resort locations. Currently, there are condo hotel projects underway in almost all major cities in America. Investor friendly developers are offering pre-construction condo hotel investment opportunities with equity and other incentives to attract investors to this emerging style of real estate ownership.

In general, preconstruction condo hotel investors look for locations which are attractive for tourists. i.e. near the ocean, beaches, theme parks, casinos, golf courses, ski resorts etc. In addition pre-construction condo hotel investors like to have first class amenities like spas, resort style swimming pools, fancy restaurants, clubhouse, and concierges. Real estate in desirable locations and with great amenities is always sought after, and therefore, preconstruction condo hotels perceive investing in condo hotels as a safe investment, even though it’s a relatively new concept.

After acquiring a good pre-construction condo hotel deal, the investor has two options to exit. First, they can sell the condo hotel directly to another party. Second, they can keep the condo hotel in their own portfolio. The investor can choose to have the condo hotel management company to manage and rent the property and receive rental income. In addition, they could also use the condo hotel for their own vacation trips.

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