If you’re considering your options for purchasing a second home, then a hotel condominium could be the right choice for you.
This blog will break down what a hotel condominium is, what life as a hotel condominium owner looks like and some of the most sought-after locations to buy your own hotel condominium property.
- What Is a Hotel Condominium?
- What Does Life as a Hotel Condominium Owner Look Like?
- Where Can You Buy a Hotel Condominium?
What Is a Hotel Condominium?
As an ordinary condo owner, you can rent out your condo when you aren’t using it. However, you would be responsible for finding your own renters, preparing your home and receiving those renters and collecting the rent.
When it comes to a hotel condominium, things are a little different. Instead of purchasing a stand-alone condo, these properties are located inside hotels or resorts operated by global brands, such as Hilton.
Hotel condominiums can be a great opportunity for people looking for a second home. In most cases, the condo owner can use it themselves for several months each year.
When owners aren’t using it, they can place their condo into an organized rental program usually controlled by the hotel brand and the onsite hotel operation.
Net revenue generated from rentals is then shared between the owner and the operator, typically on a 40 : 60 basis (as the operator has all the hotel operating costs to cover). Net revenue is typically gross revenue less service fees and reserve contributions.
Service fees cover the cost of central reservations, credit card commissions and fees, travel agent commissions, travel agent consortia fees, commissions paid for internet booking services, guest supplies and amenities, replacement linens and government taxes.
The reserve is used to replace, renovate and upgrade the furnishings and appliances.
Let’s take a look at these points in more detail and the reasons you should consider a hotel condominium ownership as your second home investment.
What Does Life as a Hotel Condominium Look Like?
First and foremost, hotel condominium ownership can provide you with the home away from home that you’ve always wanted. These properties are specced by some of the world’s leading hotel brands.
As well as offering standards that can be difficult to afford elsewhere, you’ll have full access to all of the hotel's amenities, including bars, restaurants, pools and exercise centers. The same goes for anyone who decides to rent the property when you are not there.
As the property owner, you have first choice over when you occupy your condo each year. Most hotel condominium programs limit the number of days you can stay in a year. This ensures the hotel is sustainable and viable for both the owner and the hotel operator. Whatever days or weeks you don’t use, you simply put them up for rent..
When you rent, the room will be marketed on the hotel company’s website and booking system, and any inquiries or bookings will be managed by their reservations department. You don’t have to worry about finding people to rent your condo, about marketing costs or about organizing their stay for that matter.
Being advertised on a global sales and reservation system by a hotel brand will help your property achieve the highest possible occupancy, daily rate and rental income from rental guests. So choosing a branded hotel condominium is a good idea.
When it comes to maintenance and housekeeping, these are taken care of by the on-site management team, who will prepare rooms for guests, manage housekeeping, provide service and be on hand to fix any problems.
Hotel condominium owners are responsible for all costs and expenses relating to the maintenance of their condo, including utilities, telephone and internet access. If an owner opts into a rental program, repairs and maintenance will be carried out to the standards required by the hotel brand and mostly covered by the reserve fund mentioned above.
All repairs and maintenance of property beyond your front doorstep are paid for out of Homeowners Association (HOA) fees.
What does this all mean? It means that hotel condominium owners don’t have to lift a finger - either to rent their property or to maintain it to the standard required by the hotel brand.
So when you feel like taking some time off, you know you have a beautiful property to retreat to that will be in pristine condition when you arrive. And when you’re back home living your everyday life, you can rest assured you have a second home that’s in safe hands.
Tempted? If so, where is the best place to purchase a hotel condominium?
Where Can You Buy a Hotel Condominium?
Hotel condominiums aren’t just built anywhere. They’re usually located in some of the world’s most desirable places.
We’ve written a blog that discusses some of the best countries to buy property abroad for US citizens. On the list, you’ll find Bermuda, which is soon to be home to one of its own world-leading condo hotels.
Bermudiana Beach Resort, Tapestry Collection by Hilton will be able to provide you with all the opportunities we’ve highlighted and so much more. Overlooking the pink sands and turquoise waters of Bermuda, this place really could be your slice of heaven.
With 94 condos currently being converted, this is an exciting opportunity for anyone looking to buy a second home in Bermuda that completely takes care of itself.
To give you a better flavor of what the resort will look like once it’s complete, how the rental program will work and all the other benefits you can enjoy from becoming a member of the Bermudiana Beach Owners Club, we’ve put together a helpful resource.
The Second Home You’ve Always Dreamed Of Awaits
Have you decided that a condo hotel could be right for you? Are you intrigued to discover why Bermuda Beach Resort is the perfect place to make your investment?
Look no further. By downloading this guide, you’ll find out all there is to know about the resort, how the rental income scheme works, the different owner benefits you’ll enjoy and a full breakdown of the resort’s amenities.
Your gateway to paradise starts here. Access your copy of the guide below.