What is a Condotel?
A condotel is 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 hotel’s rental program where it is rented out like any other hotel room.
Most people think of a few basic options when it comes to residential facilities. Single family homes, apartments, apartment complexes, hotels, and condominiums are a few of the options that come to mind when considering residential properties. However, a number of other, less common options are also available like the combination of a Condo Hotel also known as a Condotel. Given the location and situation, these alternatives can be very handy and provide multiple benefits to the operators, residents, and financiers.
Each unique type of residential property has its own benefits. By combining hotels with condos, a new type of facility can result and provide unique opportunities. The unique nature of these types of endeavors can sometimes make it difficult to acquire financing. This is especially true in larger areas like New York which have a competitive residential property market.
Condo Hotels provide a unique living arrangement that can be beneficial to individuals of varying income levels. By combining the layout of a condominium project with traditional hotel services, the best of both worlds are established as a Condotel.
Unit owners have the option to place their units in the hotel rental program where it can be rented out like a normal hotel room. Not only does this provide both long-term and short-term housing opportunities, it can also provide a great way for individuals who own units to make extra money at their discretion.
Acquiring financing for such a unique type of establishment can sometimes be difficult. Banks are hesitant about providing funding for these types of endeavors as their uncommon nature provides little data as to how they will fare in competitive markets. Working with established organizations like Starr Mortgage, who have experienced coordinating loans for condotels, can make the process much easier. Contact Us now for more information on Condotel.