condo hotel?

[bfdretired Member Find all posts View Profile Close bfdretired]

Does anyone have experience with a condotel? My son purchased one at lake lawnlodge resort in wisconsin....I understand it is a hotel room only in a resort type atmosphere....Having been spoiled with B/G resorts...I cant imagine just having a hotel room.....he owns the unit and rents out what he doesnt use?
what do you think?

[timeos2 Senior Member Find all posts View Profile Close timeos2]

Another highly touted plan that had no legs

Does anyone have experience with a condotel? My son purchased one at lake lawnlodge resort in wisconsin....I understand it is a hotel room only in a resort type atmosphere....Having been spoiled with B/G resorts...I cant imagine just having a hotel room.....he owns the unit and rents out what he doesnt use?
what do you think?

You have the concept basically correct. This was an idea that flourished briefly a couple years ago but most of the projects have never been - and most likely will never be - built. It was a vehicle to have a room (not a timeshare but a hotel room perhaps with upgraded amenities) that you owned but the operator of the project would rent out for you when you didn't use it. It was costly, it was a way to get developers "free" financing for the project from investors who in theory would make money through the rentals. It was a poster child for the excesses of the most recent real estate boom (now bust). It also tended to be for projects that couldn't get traditional funding even in that loose money period so they were often in overbuilt or questionable demand areas. Even those that were built may have a hard time sustaining themselves.

I hope his succeeds as a few were actually viable projects but overall the idea has already come and gone. In Orlando alone there were 24 or more proposed. Last I saw two were actually completed, a couple more were done but most (!) buyers were trying to get out of their deals and the rest are largely signs on vacant lots touting the beautiful development planned to be "completed in 2007". Big money lost in many cases.