Condotels catch on fast -- maybe too fast

Thousands of units under way in major real estate markets

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Charlotte Chipps, an Ohio schoolteacher, bought a condominium-hotel unit last year in Daytona Beach, Fla. A developer had bought up a couple of hotels in the area and converted the buildings into condotels — which allow buyers to purchase individual units and gives them the option to enroll in a rental program that opens their units to hotel guests for a share of the rental income.

“It was sort of a whim,” she said. “I do own a house in the Daytona area that I rent. I had just that little bit of experience. I’m not a person with any money.