Condo Hotels Explained – Condominium Hotel Las Vegas
Exclusive Condo Hotel for Sale Information
Condo hotels explained are typically high-rise buildings developed and operated as luxury hotels in some of the most desirable vacation locales in the US and around the world.
These hotels have condominium hotel Las Vegas units which allow individuals to own a luxurious, full-service vacation home they can use whenever they like.
When they are not using this home, the owner can leverage the marketing and management power of the hotel chain to rent and manage the condo unit as it would any other hotel room.
The condo hotel investment investor essentially owns the condominium hotel Las Vegas deed to a specific hotel room or suite and pays property taxes, insurance and maintenance fees as they would on a traditional condo hotel for sale.
Most owners then opt to participate in the hotel’s rental program in exchange for management fees and a share of rental revenues, the hotel management company rents out the room, on a rotating basis with other available units.
Condo hotels explained offer all the pleasures of a luxury resort hotel with amenities such as spas, health and fitness centers, concierge and maid service, fine dining, etc.; and the promise of rental income without the hassles of dealing with tenants.
The on-site management is responsible for all the maintenance and interaction with the renters for those times when the owner isn’t using their vacation home.
In some instances the rental income can even cover most or all of the ownership costs. Given these attractive characteristics and a fairly limited supply of new and secondhand units, Condo Hotel for Sale have also seen annual appreciation in hot markets such as Las Vegas.
Condominium Hotel Las Vegas – Condo Hotels Explained
Of course, condo hotels explained these benefits don’t come without some limitations. For condo hotel for sale owners who want to take full advantage of the hotel management and fully participate in the rental program, some common drawbacks include:
- Reservation requirements: to ensure availability of the unit, owners need to let the hotel know in advance, sometimes as much as 60 days prior to their stay
- Unit conformity: units come fully-furnished according to the hotel’s decor and standards and changes are not allowed. Sometimes owners are held responsible for periodic furniture replacement as well.
- The inconvenience of packing for your own vacation home: personal items such as clothes, personal effects, photos, etc. cannot be left in the unit unless there is an owner’s closet.
Other limitations apply regardless of your participation in the rental program:
- Living restrictions: some hotels and some local governments put limits on the amount of time owners can stay in their unit in a given year (to ensure hotel capacity and hotel visitor tax income)
- Lack of transparency: under SEC regulations, if the seller stresses the investment potential, it comes under SEC jurisdiction, rules and restrictions, and is taxed as an investment. Therefore condo developers uniformly do not provide important data such as room rates and occupancy levels which would help estimate potential rental income. This can make the purchase decision more difficult.
Nevertheless, for a growing class of affluent investors and luxury vacationers who want the freedom and flexibility of a deeded second home (during usage and/or sale) and the amenities of a resort or destination club. So much so that nearly every luxury hotel development today includes condominium hotel Las Vegas.
Condo Hotels Explained
Robert Ratliff with RE/MAX Las Vegas Ratliff Realty Group is the author of this article on condo-hotels real estate in Las Vegas Nevada.
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