Over 25 different condo hotels are now being developed in Orlando and another five to 10 are in the planning stages.
The same qualities that made this dynamic city the timeshare capital of the world - amazing theme parks, fantastic weather, championship golf courses and world-class shopping -- are now helping Orlando capture the title of "condo hotel capital" as well.
What Are Condo Hotels?
Condo hotels are fabulously-furnished condominiums located in luxury hotels that offer a wide range of amenities from resort-style pools to full-service spas, fine-dining restaurants and concierge services.
Owners use their condos whenever they'd like. When not using their unit, they can place it in the hotel's rental program and receive a portion of the revenue it generates, usually about 50% although it varies by property.
Because the hotel is typically managed by a professional hospitality company like Hilton, Hyatt, Sonesta, Trump or Starwood, owners can feel confident that their vacation home is being well cared for and is being well marketed to potential guests.
Who's Buying Orlando Condo Hotels?
The condo hotel concept is popular in Orlando with families who want an exciting place to vacation with their kids, empty nesters and seniors who love golf and year-round good weather, and international buyers who want a U.S. vacation home but are wary of trying to manage and maintain a property from overseas.
In Orlando, estimates are that over 40 percent of the condo hotel units sold are to U.K. buyers, although German and Latin American buyers have also shown an affinity for the area.
How Much Do Orlando Condo Hotels Cost?
Orlando, more so than any other U.S. city, offers a wide range of condo hotels at various price points. The budget-minded consumer can find properties in the $100,000 to $200,000 range. Many of these condo hotels are actually conversions of existing hotels.
Middle-of-the-road properties are well-located usually within close range of the area's popular theme parks and offer a very comfortable vacation home in the $200,000 to $500,000 range.
At the very top-end of the scale are five-star, amenity-rich condo hotels that offer everything from on-site water parks to world-class golf courses to Las Vegas-style entertainment venues. Units at these condo hotels can cost from $500,000 to upwards of $1,000,000.
Are Condo Hotels Investments?
While condo hotels are primarily marketed as a lifestyle and vacation product, they are also real estate. In major vacation destinations like Orlando real estate appreciation has been significant and sustained for many years. People who buy a condo hotel unit in Orlando for that reason often do so as a means to diversify their portfolio and look forward to selling their property at a profit.
How Do You Choose the Right Orlando Condo Hotel for You?
Realtors who specialize in condo hotels and are personally familiar with the Orlando area can help you examine the pros and cons of each property on the market. They can help you compare amenities, locations, developers, management companies and appreciation potential.
Also, they can tip you off to new properties coming on the market, helping you to buy in the earliest stages of pre-construction when prices are lowest and unit selection is greatest.
PLC International Marketing Networks has revealed that some institutional investors are trying to diversify their property portfolios through areas like Southeast Asia, China and beyond - with the Philippines heading the list, then Thailand, Japan, China, and Singapore property investments featuring in some portfolios.
In the UK, "Investors are moving to new areas to find value" said Beth Collingz, Global Marketing Director of PLC International Marketing Networks based in Metro Manila and Cebu in the Philippines. "More and more of clients for Condotel Investments are coming from the UK. There has been a distinct market shift from US based clients over the past few months and we see that trend continuing over the winter months of 2006 and on into 2007 has Sterling continues its increase in value over the US Dollar.
A lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe, specially UK Housing prices, and the easy payment options available for our Condotel Developments, but there are other factors, too. Offshore Property Investors, Foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes, particularly Condotel Investments where they can use the Condo for vacations and rent it out through our In-House Condotel Management when they are not using the unit thereby gaining rental incomes that on today's purchase prices, give a projected ROI on their investments of some 12-14% depending upon the mode of payment for the unit
Metro Manila remains a popular choice with international buyers and institutional investors. Collingz says clients tell her that it makes more sense to buy in a year-round vacation destinations and business centers. Lancaster - The Atrium Condotel developments by Pacific Concord Properties located in Shaw Boulevard, Metro Manila - fits the bill with all it offers to International buyers.
Accessibility is also a factor. Flights from London to Manila, for example, average just 16 hours, add to that the many airline specials and it's easy to see why this area is becoming an international community. Unlike other offshore rental properties, where the rental market is largely seasonal, in the Philippines there is a strong market for rental properties year round. This gives buyers greater flexibility in choosing when to use and when to rent their property. The strong rental/second home market also has resulted in a proliferation of professional property managers and rental agents, making property ownership and rental easy. Pacific Concord Properties Inc with it's flagship Lancaster Condotel Developments fit's the bill
Lancaster Manila Atrium Tower A, Shaw Boulevard, Metro Manila, Philippines is a "Full Service" Condominium Hotel ["Condotel"] offering Studio, One, Two and Three Bedroom Suites for sale. To be completed and ready for turnover from December 2010, the Lancaster Suites Manila Atrium Tower II will provide unit owners with premier residential condo units with the option of enrolling their units in the Lancaster Condotel Rental Pool and earn Rental Incomes as Owner Non-Residents when not using their units through Condotel Management and reciprocal arrangement with Lancaster Cebu Resort Residences. This makes Lancaster Suites Manila, one of the Hottest Investment Opportunities in the Philippines said Collingz
Both Bob Ostrander & Plcmarketing are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Bob Ostrander has sinced written about articles on various topics from Real Estate. Bob Ostrander is a real estate broker with Condo Hotel Center. He specializes in the Orlando condo hotel market and has more than 25 years experience in franchise acquisition, development, marketing and operations management in the hospitality industry. V. Bob Ostrander's top article generates over 2900 views. to your Favourites.
Plcmarketing has sinced written about articles on various topics from Banner Advertising, Investments and Property Investment. PLC International Marketing NetworksPacific Concord Properties Inc., Manila Head OfficeShaw Boulevard, Mandaluyong City. Metro Manila. PhilippinesPhone: Manila [632] 717 1958Fax: Manila [632] 718 1828Pacific Concord Properties Inc., Cebu OfficeLapu-Lapu C. Plcmarketing's top article generates over 74000 views. to your Favourites.