What is a Condo Hotel?
A Condo Hotel is a combination of a condominium within a hotel. Most Condo Hotels, also known as Condotels, are high end hotel communities that offer most amenities that are generally available at five star hotels such as restaurants, bars, fitness centers, indoor/outdoor pools,shops,concierge, spas, and room service.
Condo Hotel in Florida
Many Condo Hotels in Florida are waterfront and many offer services like boat and jet ski rentals. It is rather difficult to distinguish which hotels are Condo Hotels. The main difference between a Condo Hotel and a high end hotel is that the hotel has one entity who owns the hotel and the Condo Hotels has many owners that own the individual Condotel units. The entity that owns a hotel might be one person, a corporation, a limited liability company, or a group of investors. A Condo Hotel might have one individual owning one Condotel unit, or one owner may own multiple Condotel units. A group of investors or corporation may own multiple Condotel units as well.
Condo Hotel Ownership
Most Condotel unit owners have no say in the decor of the individual Condotel units. The management of the Condo Hotel decides what type of furnishings and decorations of the Condotel. In a way this is a good policy because you would not want a Condotel unit look out of the ordinary.
Condo Hotel Ownership as a Second Home
For those individuals who want a vacation getaway without the troubles of maintenance of the vacation home, Condotel ownership would be an ideal investment. Plus, a big advantage of owning a Condo Hotel is that you can earn rental revenues which will offset your monthly mortgage payments and expenses. Many Condotel owners make a positive annual cash flow from their Condotels and get to enjoy their Condotels for free because the rental income covers their mortgage and expenses. Other Condotel owners like the high rental income so they own multiple Condotel units as an investment and generate handsome positive cash flows. These Condo Hotel investors hardly use their multiple Condo Hotels and just own them as investment properties.
Condo Hotel Homeowners Association
Most Condo Hotel management charge a commission from the revenues. The percentage split varies among Condo Hotels but a 50% split between the Condo Hotel owner and the Condo Hotel management team is not uncommon. The Condo Hotel management team manages the maintenance and books of the Condo Hotel. The individual owner does not have to do anything. The Condo Hotel management team will manage the staff, do the accounting, and make sure everything is in line and in order and will send monthly, quarterly, and annual reports to every Condotel unit owners.
Condo Hotel Financing
There are not too many Condo Hotel mortgage lenders. Big banks like JP Morgan Chase, Bank of America, Citibank, and Wells Fargo used to finance Condo Hotels but stopped lending on Condotels altogether. If you are interest in financing a Condo Hotel in Florida, I can definitely help you. I can specialize in Condotel Purchase Loans and Condotel Refinance mortgage loans. For those Condo Hotel owners who own their Florida Condo Hotels without a mortgage but is needing a cashout refinance loan on their Condotels, I can get them a 70% LTV cashout refinance Condotel mortgage loan. Contact me at www.gustancho.com or call me at 262-716-8151.