Condo Hotels come to Europe

Whilst on a long flight to Barbados recently, upon glancing through the inflight magazine, one particular article grabbed my attention, about the concept of owning a hotel room on a 999 year lease and letting the Hotel Management run it.  A surprisingly simple idea for investors seeking a hassle free investment.

Condo hotels have been popular in areas such as Miami, Las Vegas and New York for twenty years, but I must admit I hadn’t heard about this brilliant idea until I took time to read about the concept during my flight.

People can buy a hotel room or suite for personal use and rent it to hotel guests when not using it and it is rented out usually on a rotational system through the hotel pooling system.  The hotel takes a share of the rental income and is responsible for the maintenance.   It is possible also to purchase a condo hotel off plan.

This idea is proving extremely popular in Central London by investors who have a place to stay for virtually no outlay.   I must delve more into this as I believe there are other advantages such as rooms being eligible for inclusion in SIPPs (self-invested personal pensions) allowing investors to benefit from tax- free returns on both their income and capital growth.

I will shortly be adding condo-hotels to my listings on the ESI property web site so that anyone interested will be able to learn more about this brilliant idea.

Eugenie