Sunday, May 14, 2006

Needed: Hotel Condos

The hotel-condo marketing strategy that started in resort areas is now spreading into all major metropolitan areas. Many of the largest worldwide hotel chains now sell condo hotel residences.

There are variations of this same concept speading to nearly every market area. It provides the advantage of a guaranteed income to the hotel (via maintenance fees), while they generate additional income through a share of the rental income from the condos when they are not in use by their "owners".

The hotel-condo is an interesting, viable, and emerging sector of the housing market. I would like to see a project like this come to the Wenatchee area. Baby-Boomers are looking for a vacation lifestyle with spacious accommodations, dining and activities. I believe with all the tourism in our area, this could be a popular option.

Simply, here’s how the "condo-hotel" concept works. You purchase a hotel-condo and use the residence whenever you want. When you are away, put the residence in the hotel’s rental program and share the revenue with the hotel. The hotel’s management company takes care of all the management issues such as cleaning, renting and maintaining.

These residences offer the best of both worlds, a hassle free residence and the rent revenue that you receive helps offset the costs of owning a 2nd or 3rd home. There is also the potential for appreciation, of course.

I hope a project like this will come to the Wenatchee real estate market soon!

1 comment:

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