These projects blend hotels and condos into a single package. Normally, at least some portion of the condo units are owned by private unit owners but are used by the hotel for hotel guests. The "common area," owned by the condominium owners is managed by the hotel operator.
Condo hotels are typically sold as second or third homes, not primary residences, so that units become part of the hotel's inventory of rentable units.
|What you get
||Often two and three bedrooms, and always with a kitchen
||A hotel room, from standard to suite, often without kitchen facilities
||Ranges from studios to penthouses, usually with kitchenettes
|Length of Stay
||May occupy unit anytime, 365 days a year
||Generally, the length of stay is limited typically one week to three months
||Entitled to occupy during the share purchase done or two weeks, for example
|Ownership of unit
||$350 to $2,300 (usually includes utilities)
||$450 to $750
||Rentals may be restricted by homeowners association CC&Rs
||Owners usually must make the unit available for rent when not occupying it by joining the developer's sponsored rental program, hiring an independent rental agent or renting the unit themselves
||Varies by management company
*Information from LA Times, March 12, 2006, K10.
Not Securities Transactions. The sale of hotel condominiums and subsequent rental management agreements do not constitute securities transactions. Salameh v. Tarsadia Hotel, 726 F.3d 1124 (9th Cir. Aug. 13, 2013).
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