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The Condominium Hotel is a relatively new property investment bridging the gap between a 5 star hotel and a luxury second residence. If you are new to the concept of the Condo Hotel, you can acquaint yourself with the general idea in depth here. While the linked article was written with respect to US ventures, the general picture applies worldwide where quality developments are built in land-limited desirable locations



Of note are the following comments from the article. The first, about expected rental income speaks for itself.



‘Owners are likely to receive a higher level of rental income by participating in the property's rental program which is administered by a recognized professional operator that can capitalize on the hotel's national affiliation, its brand name, its sophisticated reservation system and management expertise.’



The rising demand for Condo Hotels is illustrated by this comment



‘Condo hotels are typically found in highly desirable areas, often near the ocean, theme parks, golf courses, or in major cities. Miami and Miami Beach were the first areas to get large-scale condo hotels, and for a few years had the most condo hotel inventory in the nation. Now that most of those original condo hotels are sold out and raw land is virtually nonexistent, the trend has moved north to places like Fort Lauderdale, Orlando, Daytona, Destin and Tampa.’



Established therefore is the viability of the Condo Hotel managed-resort property model, and subsequent buying interest. Now the market is seeking to satisfy demand.



For investors attracted to this type of asset looking for appreciation and rental income in addition to having a luxury holiday apartment for their personal use, the primary considerations must be location (x 3 of course), build quality, management quality and expected financial benefits. Not all Condo Hotel products will be equal, and a careful selection of developments that have a team with a strong track record behind them is essential for DSR Asset Management Ltd.



David Redfern of DSR said



“The price of travel is set to increase, as Governments around the world align themselves with the imperative of tackling climate change. Weekend breaks to far-off places will become a relative  rarity. More and more people will be encouraged to make fewer trips and stay longer. This will drive up demand for Condo Hotels with the added amenities commensurate with the requirements of a longer stay. Really a Condo Hotel apartment is more like a luxury residence in terms of space and functionality. As people get used to this level of luxury and convenience, they will want it wherever they go."



There are a number of firms now specialising in 3rd party Condo Hotel management, forcing competition into this facet of the business also, which must bring standards of care up and management charges down in the longer term.



"In the future Jet Setters will be making a few trips of a week to a month per year instead of taking off every other weekend. Those who buy holiday property in a prime city centre or top-end beach site can benefit the environment, economy and themselves by having it in use for that vast majority of the time when they are absent. It’s a win-win situation for the owner of a well-managed apartment – they get rental income and the property is maintained in tip-top condition ready for their next visit.” Mr. Redfern added.

 

For more information about selected Condo Hotel and other outstanding capital growth with income investment opportunities world-wide

About DSR Asset Management Ltd

DSR Asset Management Ltd is an established leading overseas property specialist, working closely with developers in many countries to provide an exclusive turnkey service for the discerning investor.

Please direct all media queries, requests for press information and editorial details, to media@davidstanleyredfern.com

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