Checking Into Condotels

	A Home at the W, Las Vegas
	Photo courtesy of The Edge Group

Always dreamed of owning a second home? Now you can, in a perhaps unexpected way.

Ownership in condo hotels is fast becoming an ideal way to purchase an enviable vacation or second home without all the responsibility.

When you buy a room or suite in one of these luxury resorts, not only will you enjoy the life of a pampered guest, but you'll have the opportunity to reap financial rewards as well.

A real estate venture that's existed quietly for decades, condo hotels, or "condotels," are attracting private investors who want a great vacation spot or second home that will generate revenue, both to offset ownership costs and provide a future return on their investment.

Typically, condotel owners have the option of occupying their units for a certain number of days per year, then entering them into the hotel's rental program for the balance of the time.

The resulting revenue from other hotel guests is split between the unit owner and the hotel's management company, and can offset maintenance and other fees.

At Your Service

You are always treated like a guest when you check in to your condotel unit. The rooms are frequently located in mixed-use hotels and resorts that also house traditional hotel rooms and offer amenities such as deluxe spas, pools, housekeeping and concierge services.

The new W Hotel that's under construction in Las Vegas, for example, promises to deliver all of the services and pampering that guests have come to expect from this luxury brand.

With 4,000 rooms, a 75,000-square-foot casino and 10 restaurants and night clubs, this hotel is being built in true Vegas style. Its design incorporates the signature W entrance that's more living room than lobby and features posh retail shops, including Fred Segal.

While the hotel's developers look forward to welcoming their first overnight guests, their attention now is on buyers of the project's condo hotel rooms.

These rooms come equipped with features like plasma TVs and Sub-Zero refrigerators, and the hotel offers luxury services including a concierge, valet parking and a Bliss spa.

Starting at $650,000 for a 500-square-foot unit, the first 500 rooms have already sold out, and the second 500 are going fast.

"The W brand is one of the biggest contributing factors to our success in the condo hotel market. People have a lot of faith in the brand, and they want to buy into it," says Maggie Feldman, spokeswoman for the hotel's development partners the Edge Group and Starwood Hotels and Resorts (HOT).

But the growth of condotels is not focused solely on new development.

In New York City, the famed Plaza Hotel is closed for renovations, and when it reopens in 2007 it will include 152 condotel units. The Plaza's rich history and prime location -- bordering Central Park and Fifth Avenue -- make it one of the most coveted parcels of real estate in the country.

"In purchasing at The Plaza, you are purchasing one of the great buildings in the city. It's an icon known around the world," says Lloyd Kaplan, spokesman for Elad Properties, owners of the Plaza Hotel.

The new hotel residences will feature a butler on every floor, and occupants can use in-room touchscreens or the concierge service to order Broadway tickets and make restaurant reservations.

	You'll Never Have to Clean the Pool
	Photo courtesy of The Edge Group

Guests will also be surrounded by restored elements of the Plaza's original architecture, including a 1,200-square-foot stained-glass skylight that adorns the ceiling of the hotel's Palm Court.

A Growing Trend

"Condo hotels are not really new; it's just that the bigger players are involved now," says Jan Freitag, vice president at Smith Travel Research, a leading information and data provider for the lodging industry.

According to Freitag, interest in condotels began to rise around 2002, when the concept hit the radar of bigger hotel chains. "It's like time-shares. It wasn't until Disney began offering them 15 to 20 years ago that they became mainstream," he explains.