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Condotels – The Vacation Industry’s Next Big Trend

Story originally published by Xplorie. To read the full story click here. 

In the five years prior to COVID-19, the short-term rental market sky-rocketed with a growth of 300%. Despite a tough year grappling with the side-effects of a pandemic, performance is trending upwards and vacation rentals look set to stay as the preferred accommodation for travelers across the US.

COVID-19 had a harsh impact on hotels and short-term rentals but the industry is bouncing back fast, vacation rentals faster than hotels! The changes in travel behavior in a COVID-19 world, the convenience of a vacation home where you can remain within your bubble, and catching up on missed travel opportunities (revenge travel) are all contributing factors. Property Managers in sought-after travel destinations are struggling to meet the demand for rentals and growth is on the road map for many.

Guesty’s short-term industry report for March 2021 shows that 83% of respondents believe travelers will continue to book short-term rentals over hotels and 60% anticipate that hotels will incorporate short-term rentals into their business models. Traditional lodging is a thing of the past and is being replaced by trendy short-term-rentals and the vacation industry’s next big trend, Condotels. Guesty’s survey also shows that 75% of property management companies are making plans for expansion to their portfolio in 2021 with 20% looking to purchase more properties. Are condotels a trend worth investing in?

What is a Condotel?

Condotels go beyond your typical vacation condo! A condotel is a condominium-style complex that looks, feels and functions like a hotel. Each unit is individually owned and the investor retains all ownership and rights to live in, or rent out, the condo as they desire. Condotels are attractive to investors entering the vacation market and are currently trending as a smart and hassle-free investment option to grow your real estate portfolio and earn passive income. Condotels are not subject to the same constricting limitations and laws that apply to residential short-term rentals, making them an excellent (and legal) solution for the vacation rental industry.

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Story originally published by Xplorie. To read the full story click here. 

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