Canadian Condo Hotels are a new trend in second home ownership. Buyers can purchase luxury vacation homes at a world-class resort and receive rent revenue whenever they are not using their residence, helping to offset the cost of ownership.
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Canadian Condo Hotels are normally operated by the biggest names in the hospitality industry like Four Seasons, Ritz-Carlton and ChoiceHotels. By capitalizing on the hotel’s name recognition, advertising, national affiliations, centralized reservation system and management expertise, Canadian Condo Hotel unit owners typically receive a higher level of rental income than they would from ownership of a traditional vacation home.
Owners normally participate in the property’s rental program and share in the revenue the unit generates. Ownership is considered to be 100% hassle free as all maintenance and rental issues are handled by in-house management companies.
With a timeshare, owners are typically allotted just one to two weeks of the year to use their condo. They receive the same calendar weeks unless they go through a process to trade with someone else. With a Canadian Condo Hotel unit, owners have deeded ownership to their unit and can usually use it when they want. Timeshares can also be difficult to resell, even if the seller is willing to take a loss. Canadian Condo Hotels, on the other hand, because of their prime locations, limited inventory and upscale quality, are a highly-desired commodity. They are more likely to appreciate over time and can be readily resold.
As part of the rental agreement, the hotel pays for most operating expenses such as housekeeping, administrative and marketing costs. The Canadian Condo Hotel owner typically pays the real estate taxes, insurance and capital improvements.
Canadian Condo Hotels are attractive because they offer a luxurious lifestyle and hassle-free ownership. In addition, low interest rates and a volatile stock market have caused investors to diversity and consider real estate alternatives like Canadian Condo Hotels.