It depends on YOU, the investor. If you're paying cash, can you cash-flow on the unit? Is your money making more on the (theoretical) increase in value of real estate vs other investments? Probably safe to say that, at today's rates, your cash will do better in real estate than in a bank's vaults. But if the monthly assessment and taxes is at or above your expected rental rates then no, it's not a good investment. As far as pros and cons, a hotel building will have fewer lenders available and will appeal to a different type of buyer. There's something for everyone - whether this is for you or not is a personal calculation.