Condotel

DEFINITION of 'Condotel'

A condominium project that is operated as a hotel with a registration desk, cleaning service and more. The units are individually owned. Unit owners also have the option to place their unit in the hotels rental program where it is rented out like any other hotel room.

BREAKING DOWN 'Condotel'

There are pros and cons to condotel ownership. Pros include rental income to offset ownership expenses, a great vacation home, a cared-for home and potential price appreciation. On the down side, you might have to make a reservation for your own unit several days or weeks in advance. There are risks associated with all hotel ownership as well, such as occupancy rates that might be based on general economic conditions and potential destruction of the property.

Generally, condotels are sold as a second or third home.

RELATED TERMS
  1. Revenue Per Available Room - RevPAR

    A performance metric in the hotel industry, which is calculated ...
  2. Credit Card Blocks

    The reserving of a portion of a credit or debit card balance ...
  3. Vacancy Rate

    The vacancy rate is a numerical value calculated as the percentage ...
  4. Occupancy Rate

    In real estate, the number of units in a building that have been ...
  5. Ground Rent Arrangement

    A situation in which someone owns a structure but not the land ...
  6. Residential Rental Property

    A type of property that derives more than 80% of its revenue ...
Related Articles
  1. Personal Finance

    11 Ways to Save on Hotel Costs

    One of the biggest expenses when traveling is lodging. According to the latest data from the Hotel Price Index from Hotels.com, U.S. travelers spent about an average of $174 per night on hotels ...
  2. Personal Finance

    Are Hotel Chains Too Big? (TRIP, HLT)

    In America, the six largest hotel chains dominate the industry and more likely than not you’ll end up staying at one on your next vacation.
  3. Personal Finance

    Navigating The Hotel Star System

    Three stars, four stars, gold star, who star? Sometimes the hotel star system can seem as wacky as a Dr. Seuss book.
  4. Investing

    Top 5 Most Profitable Hotel Companies

    How can companies control so many properties and rooms? The same way McDonald’s controls 35,000 restaurants: franchise agreements.
  5. Personal Finance

    Why do Priceline & Hotwire Hide Hotel Names?

    Companies like Hotwire and Priceline hide hotels names from prospective guests, and both the customers and hotels are beneffiting from the arrangement.
  6. Personal Finance

    The Top 3 Most Profitable Mid-Priced Hotels

    American hotels recently released earnings. Here's a look at three of the most profitable mid-sized hotels.
  7. Personal Finance

    Hotel Disruptor: Airbnb's Sharing Economy Gambit

    As Airbnb, the largest peer-to-peer exchange service for hospitality around the world, continues to grow, government and hoteliers have taken notice.
  8. Personal Finance

    Condo-Buying Walkthrough: Reasons To Buy A Condo

    Many features of condominium ownership are attractive to people exploring different options when it comes to the purchase of real estate. AmenitiesCondominium developments often provide access ...
  9. Personal Finance

    Hotel or Airbnb: Which Is Better For Paris Visit?

    Paris hotels have their allure, but a less expensive Airbnb may be just as charming – and even leave room in your budget for a longer stay.
  10. Personal Finance

    Condo-Buying Walkthrough: Condo Characteristics

    Condominium ownership is considered a hybrid form of ownership because it falls outside traditional structures of property ownership. Certain legal and technical characteristics help define condominium ...
RELATED FAQS
  1. Can I take a loss on real estate owned and sold as “other investment”?

    I owned a house which we used as our primary place of residence from 2006 - 2009.  Read Answer >>
  2. Why do longer term CDs pay a higher rate than the short-term CDs?

    To address this question, let's employ the concept of distance. In the city, a short taxi ride from your hotel to a convention ... Read Answer >>
  3. Do we pay capital gains taxes on the profit if we sell the house?

    We have lived in our house in Washington state for 4.5 years, but we have only owned it for 1 year. ... Read Answer >>
  4. When I retire, will collecting rent from property I own cause me to be penalized ...

    The rent amounts to $6500/month. ... Read Answer >>
  5. Why is my rent on my credit report?

    Find out how, when and why your rental history is included in your consumer credit report and how lenders can use that information ... Read Answer >>
  6. What are the warning signs of online hotel / travel booking scams?

    Learn more about travel booking scams and how to avoid them. Explore warning signs of possible booking scams, and find out ... Read Answer >>
Trading Center