Condotels are a form of ownership invented as a way for resorts to provide enough beds for visiting guests without owning a lot of real estate.
Basically, a condotel is a condominium where they allow nightly rentals. There is usually a front desk person to hand out keys and provide a personal contact for visitors. The owners can use their units as much as they'd like, and are encouraged to put them in the rental pool for visitors when they are not in town. The rental income is then split between the managment company and owner, usually around 50/50.
Because Condotels cater to resort visitors, they have plenty of amenities to make guests comfortable. There are usually fitness rooms and spas, pools, hot tubs, shuttle service, and housekeeping. Often, owners can use the facilities even when they are not staying at their unit.
One thing we'll see more of in Steamboat Springs is big-name companies like Starwood, Ritz-Carlton and Four Seasons developing condotels. Look for announcements in the coming months/years for properties at Wildhorse Meadows and Ski Time Square. High-end properties are in short supply in Steamboat Springs, and we'll be getting more of them.
When investing in a Condotel, there are a few things to consider:
- Financing--Steamboat Springs condotels are financed differently than regular condos. Use a local Steamboat lender who has plenty of experience with condotels. Using your out-of-town lender who has never heard of them is a recipe for disaster.
- Location--condotels are the same as regular real estate--the three words to remember are location, location, location. Look for popular areas (like Steamboat Springs) with low inventory (like Steamboat Springs) with Ski-in, Ski-out or close to the slopes location. You'll have better rental income and better resale prices.
- Pre-Construction Pricing--try to purchase condotels before they are built. You'll get the best prices and see your unit rise in value before you ever spend the night there.
If you would like information on Steamboat Springs's latest developments and condotels, or to place a reservation on some of our hottest properties, please call Eliese Pivarnik at 970.819.6372.
Please visit SteamboatHomeSales.com for more information on Steamboat Springs Real Estate.
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