A condo-hotel (condotel) unit is sold to an individual investor but sits inside, and is operated as part of, a functioning hotel — distinct from a branded residence block in the same resort, which is typically self-contained and not part of the hotel's room inventory. Condotel owners usually place their unit into the hotel operator's rental pool and receive a share of room revenue (sometimes with a minimum number of complimentary owner-use nights per year), rather than renting it out independently.
Why It Matters
- —Rental income from a condotel depends on the hotel's overall occupancy and the specific revenue-share or guaranteed-return terms in the purchase contract — read the actual formula, not just a headline percentage.
- —Owner-use is usually capped (a set number of nights per year, sometimes split between high and low season) — confirm the exact allowance before assuming you can treat it as a personal holiday home.
- —A condotel unit and a branded residence in the same resort can look identical in marketing renders but carry very different ownership, usage and income models — never assume they are the same product.