Condo hotels have been around for years, but they’ve been gaining in popularity and visibility lately. Essentially, owners buy a room at a condo hotel, and when they’re not using it, it becomes part of the rental pool.

Security laws prevent condo hotel developers from selling these units as a business investment. It appears that many buyers are viewing condo hotels as an alternative to a more traditional second home. But there are plenty of questions about appreciation, depreciation, and whether or not the unit will make money for the owner.

The Orlando Sentinel’s Christopher Boyd wrote a good article, “Condo hotels: A room boom,” that takes a look at how the properties work and the Central Florida market. It’s worth reading. If you’re considering a condo hotel, as with any real estate purchase, do your homework and be sure you completely understand all the potential risks and rewards before you buy.

Jackie
Chief Blogger
Wealth Intelligence Academy