Industry News

Condotels: The next big thing in real estate

Hotel-condominium hybrids selling at lightning speed

Prospective buyers signed contracts for all 248 condominium units in a converted Waikiki hotel during a nine-hour frenzy in early August. Condotels, which are hotel-condominium hybrids, are all the rage in some touristy U.S. markets. The sale of individual rooms in the converted hotel on the Hawaiian island of Oahu raised at least $28.8 million, according to local news accounts – far in excess of the $12.7 million that a California company paid for the hotel in 2001 before converting it into a condotel. Condotels, also known as hotel-condominiums, feature privately owned condominium units for short-term rentals. Some condotels are converted hotels, others are part of a network of standard condominiums that are offered for short-term rentals, and some new condotels are high-rise condo developments built exclusively for short-term rentals. The prices of condotel units can be lower than standard condominiums – the Waikiki project, for example, featured prices of $116,000 to $...