High-rise condominiums have just hit their stride. Aside from the frequency of projects by top developers, like Megaworld at The Fort, there are more and more additions coming into play. Case in point: the creation of the condo hotel, also called condotels. These residencies take the best of both condos and hotels and put them together to create a more luxurious experience for tenants.
In name alone, they’re very easy to confuse with one another. Is there really such a big difference between condos and condotels or are they largely the same?
Ownership and Management
This is, maybe, the biggest difference between condos and condotels. When you sign the contract on a condo, the unit is now considered your sole property. You might fall under building management but any changes you want to make to your place or whether you want to lease it out, are entirely up to you. In other words, you call the shots. With condotels, you have joint ownership with the hotel partner. Developers usually team up with a well-known name in the industry to give their project more credibility.When you sign the contract on a condo, the unit is now considered your sole property.
Rules and Regulations
Compared to condos, the management statutes for condotels may be more stringent. Units normally come fully furnished to capture the perfect hotel experience. Changes to structure or décor are very much prohibited. This is because the main selling point of a condotel is the convenience and feeling of living within a hotel-like space. Furnishing and decorative schemes contribute a lot to maintaining a particular ambiance and can’t be altered for any reason. In this vein, many condotels do not allow certain homey privileges, like keeping pets or drilling holes in the walls to hang pictures.Compared to condos, the management statutes for condotels may be more stringent.
Condotels will usually have the same amenities as those found in a condo with a couple of additions. You can have your standard gym and swimming pool set-up, but room service can also be part of the package. Some condotels will even offer grocery services where personnel deliver your goods straight to your door. Dry cleaning and day care are also auxiliary amenities that they can offer. What you get offered will depend on the arrangement between the developer and the hotel management.Condotels will usually have the same amenities as those found in a condo, with a couple of additions.
Most investors will want to know how a condotel appreciates versus that of a condo. Depending on the name attached to the project and how it is managed, condotels usually appreciate at a faster rate. However, prices can also drop relatively quickly. A condo, on the other hand, will gain value momentum at a slower pace but can maintain it for much longer. With condotels, a single report of mismanagement or a poor review is enough to drive value down. With condos, being part of a trusted developer like Megaworld at the Fort adds to a place’s credibility.
A lot of people purchase a condo for the purpose of renting it out. Most units are put up for lease so they can generate extra income for the owner/landlord. Is this possible to do with condotels? Yes; in fact a unit within a leading condotel can generate much higher revenue than a regular condo unit. However, condotels also tend to be more expensive due to the added perks. This can make it difficult for owners to find a market to rent to, and the expenses of maintaining the place can also be substantially bigger than leasing out a regular condo. For the most part though, condotels are highly popular with expats and vacationers looking for a place that can support both short and long-term occupancy.
Based on features, condotels don’t differ much from typical condominiums. They’re just like an apartment with a few extra perks thrown into the mix. Whether you choose to go for one or the other will depend largely on your budget and what you’re looking to get out of your stay.
Have you stayed in a condotel? What was your experience with it? Let us know in the comments!