 |
| Sibukaw Resort Residences |
Are you the
type of person who wants to own property but cannot seem to stay in that place
for the whole year? Do you dislike the
idea of having to look for available rooms in the place you want to spend your
summer? If the answer to these two questions is yes, I guess it’s time for you
to look into the idea of investing in a condotel.
According to
investopedia.com a condotel is a “condominium project that is operated as a
hotel with a registration desk, cleaning service and more.” The term condotel
is actually a combination of two words: “condominium” and “hotel” hence the
term “condotel.” In other words it is a
condominium unit that can be used as a hotel. Each unit in a condotel is owned
by an individual and owners have the option to include their units “in the
hotel rental program where it is rented like any other hotel room.”
 |
| Sibukaw Resort Residences |
Here in the
Philippines, owners of condotel units can stay in their units for thirty days
each year. They can stagger their stay or they can opt to stay for a week in
one month, and another week in another month. However, just like any other
hotel, they should make a reservation for their won units. But they do not have
to pay for it since they are the owners of the unit.
The unit is
made available for other guests for the rest of the year. This means, unit
owners can actually earn while they are not using their units. Units are typically the second or third homes
of the owners, or they do not normally stay in their units for a good part of
the year.
 |
| Sibukaw Resort Residences |
There are some
advantages and disadvantages in investing in a condotel. One major advantage is
it can serve as a remarkable vacation home. This is especially true if the
condotel is located in a tourist area. Unit owners can stay in their units
without having to pay the high cost of a hotel room. Another advantage is the rental revenue of
the unit can actually offset the amortization of the unit. For instance, if the
rate of the room is around P4,000 per night and it is occupied for a good part
of the year, then the cost of amortization can actually be covered by the
rental of the room by other guests. Unit owners will not have to deal with
landlords since the management of the hotel will ensure that the room us
well-maintained. It can also be a source
of pride for the unit owners since they can say they are part owners of the
hotel. The condotel also has potential for capital appreciation or its value can
actually increase as years go by if it is well-maintained.
 |
| Sibukaw Resort Residences |
On the other
hand, there are also some disadvantages in investing in a condotel. One major
disadvantage is the need to make a reservation before the unit owner can stay
in the room. Since it is operated as a hotel, unit owners will still have to
make a reservation, which can be difficult during peak seasons (but they can
actually make their reservations way ahead of time). Another disadvantage is the
condotel is affected by dips in the market. This is one good reason why
investors should consider all options before they start investing in a
condotel. They should check the location whether it is a good place for
tourists to stay in and whether it is a high tourist area. However, it is also important to note that the
revenues of the condotel are split up equally among all unit owners. This means
all unit owners can expect something in return whenever there are guests in the
hotel even if no one is staying in their units.
These are
just some of the things to consider before you think about investing in a
condotel. A number of condotels have
actually been set up in numerous tourist destinations in the country. And it is
possible for the return on investment to be attained in less than a decade,
depending on the occupancy rate of the hotel.
So you want
to ensure that you have somewhere to stay in the place you would like to spend
your vacation in, it may be a good idea for you to consider investing in acondotel, especially in areas that tourists normally spend their vacations.
