During the real estate boom when everyone was buying up everything at the beach, long-loved resort hotels and motels were being bought out and torn down as fast as you could say “room service” to make way for single family homes, high-rise luxury condos and the strange hybrid called the condotel. Heck, sometimes developers trying to beat the real estate bubble didn’t even tear down the hotel they had just bought out. They just flipped it as best they could to look make it appear more luxurious – and with a few Transformer sound effects (wha-wha-whe-whe-whi) – presto! chango! – a condotel for all to buy into. But the problem is, like New Coke, people didn’t buy into the hype…
Perhaps figuring out what a condotel was gave people trouble. Wikipedia says a condotel is typically a high-rise buildings developed and operated as a luxury hotel. These “hotels” have condominium units which allow someone to own what amounts to a full-service vacation home (with lots of neighbors down the hall and people always in your living room – or what non-owners call the lobby). When the condotel owners aren’t using their “home,” they can leverage the marketing and management done by the hotel chain to rent and manage the condo unit as it would any other hotel room. This sounds awfully a lot like a timeshare to me, but what do I know, I’m old school.
But the problem with condotels, besides the freaky name, is developers marketed them to potential owners as solid investments, saying that their condotel room (or “home”) would be booked almost all the time. In addition, some condotels on the coast have gotten into legal trouble for allowing developers to circumvent laws designed to protect public beach accesses. Because a condotel has hotel rooms, it can be called a public accommodation, but in truth the rooms are mostly under private ownership.
The Wall Street Journal offers an article on the pros and cons of condotel ownership in their online archives, and it may shed a little more light than I have on the trend called “condotels”….


