Search this blog

Custom Search

September 02, 2010

Condo Hotel or Condotel – Is it a Worry-free Investment?

A condo hotel or “condotel” as it is widely known today is a relatively new concept in vacation home ownership. It is a condominium project that is operated as a commercial hotel even though the units are individually owned as in a condominium. It is managed like a normal  hotel where there is a front desk that offers short term occupancy, food and beverage services, housekeeping and others. Unit owners are given Condominium Certificate of Title (CCT) which is the main difference between condotel and timeshare ownership of a vacation home.

This can be a very good investment for those people who work abroad and occasionally come home for a month long vacation or less. Or for people wanting to have a vacation home that they can come home to on certain parts of the year and earn from it while they are away.

Investing in condotel units can really be worry-free if you do the due diligence before signing the contract. A thorough analysis of the location, accessibility to the major needs of the target market, Return on investment and the track record of the operator with regards to management and accurate reporting of the investment performance on a monthly basis or as stated in the contract are the primary concerns that you need to be clear about before deciding to buy into one.

I have enumerated the following advantages and disadvantages that I see about the condotel investment and I hope these would help shed light about it.


  •  Worry free on common leasing problems because the professional operator takes care of the marketing, room reservation, accounting, maintenance and concierge services.
  •  The elegant interior design of your unit is done professionally for you.
  •  You are assured in the share of income even if your unit has not been occupied in a month because the rental income for all units are pooled together and shared among unit owners based on a per square meter ownership. So owners of bigger units gets bigger share.
  •  If the condotel is located in a strategic place, like for example in Boracay Island which is a tourist haven. The rate of occupancy is high throughout the year, especially during peak season. This means big share for the unit owners and less time to recover your investment.
  •  This is one way of earning passive income since all hard work is done for you and all you need to do is to literally wait for the money to come.
  •  If ever you decided not to use your complimentary stay, you yourself can rent it out and pocket the full rent or have it waived and let the operator use your unit continuously.
  • Return of investment can be achieved in less than 10 years depending on the rate of occupancy and location of the condotel project.
  • No need to worry about association dues because it is part of the unit maintenance which the operator handles.
  • When you enroll your unit to the condotel operation, you are only allowed certain number of days in a year to occupy your unit and you have to notify the operator way ahead of time to book your stay. (Duration of complimentary usage may vary depending on the terms of agreement.)
  • Requires additional investment for the furniture that the operator will install in your unit.
  • Since the condotel is managed professionally, only a small percentage of the net income from leasing operation is shared among unit owners. Usually around 30% or less.
  • Most condotel projects charges joining fees in order to enroll your unit in the condotel operations. This means additional investment on your part.
  • Since the management is outsourced, it takes a great deal of trust on your part for the capacity of the operator to effectively manage the business. 
  • Some condotel operators prohibit usage of your complimentary stay on major holidays of the year or during the peak season.
If you think I have missed a detail or if you have anything to add to the list. Please feel free to comment below. This would greatly help all of us learn more about this investment. Please note that the terms may vary depending on which condotel project you are investing into. Therefore some of the things I wrote above may not apply.

Live a beautiful life!

Ryan Rillorta

PS. DMCI’s Alta Vista de Boracay offers the leaseback program that is actually a condotel operation. For more details, (Click here)

PS2. Some people believe that rich people become rich because of greed and therefore they don’t want to become like one. In order to be wealthy, you need to have the right mindset. Let my mentor help you shun this rubbish belief and replace it with the right one. Be very blessed (Click here)

PS3. You may have a friend or a relative who is looking to invest in any of the DMCI projects. You can refer them to me and share part of the brokerage fee. Email me at

PS4. Don’t be the last to know. Subscribe to this blog by entering your email on the upper right hand side of this page.

1 comment:

  1. You can know about taking condo hotel or a condotel. The post is very useful


Related Posts Plugin for WordPress, Blogger...