Brand names often outperform the lesser known names when it comes to just about everything! That name brand is just what gives people the impression that they are buying or staying and/or using a luxury service or accommodation. Whether or not they are a good investment is subjective in nature. Depending on the location, condo-hotels can be very profitable year-round. Miami in general is seasonal December-March being the busiest time. The next critical issue is the management of the condo-hotel; what is their track record or is their any guarantee of income? Another important element is the house/investor split.

There are many varibles that make up the condo-hotel, management being most important.

I have written several articles on the pros and cons of buying condo hotels - take a look at the link.

Be certain to get a written plan of the Hotel-program to compare costs and restrictions. I have seen certain hotel-programs can charge as much as 45% of revenue generated, plus other misc. fees which could total over 50% of the reveune generated. Not soo good when you are trying to generate some cash flow from your invesment.

Also, make sure you clarify their restricions regarding use... better said, restrictions regarding owner usage. Some programs only allow the owner a limited number of days of useage per year.

Condo-hotels could be a good investment just make sure to do your homework.

Raza,
Like most issues in real estate, this one comes down to the property itself. Where is it located, how much are you getting for your money, is it comparable with recent sales in the area, and for this particular question you've asked, what's the split between management and owner. While one condo hotel project may be a great deal, another one right down the street may be terrible. Just get all the facts, and find someone to go with you to the project that will help you ask all the important questions you need.

Raza- the factors that these hotels want you to recognize is the convenience and prestige. If you can put a monetary value on these elements and justify it, go for it. Will this be a personal residence? If not, do you really care to make the additional investment on someone else's behalf?

Raza, The big names always sound attractive to any buyer - but there are tons of pros and cons to condo-hotels, even those with the best locations and the most sought out destinations. I wrote a series of posts about condo hotels that you may find helpful.

It all depends on where in the country/world they are. Look at your total cost and tax implications.