Condo Hotel

[Terraform]

What specifically makes a Condo/Hotel a commercial property?

 

[ddnma]

What specifically makes a Condo/Hotel a commercial property?

Unofficially, if you google the condo name you get web sites which advertise daily,weekly/monthly rentals you have passed the first test. If there is a rental desk/office, that is your 2nd test.

Great question because I think every lender has a different definition.

 

[JRS at OBX]

The fact that the primary use is not residential?

 

[CBBoston]

These are meant to operate much like a hotel with each "room/suite" having maybe a whole or fractional ownership. There is a management company that's hopefully flagged and handles all the room/suite rentals. Its an income producing (in theory) property.

 

[Kevin Mc]

They are classified as Residential in my market (there is only one).

 

[Lost Cause]

Its an income producing (in theory) property.

From what I've seen, that income production remains theoretical only.

Condo hotels seem to be the most pointlessly complex property type I've ever seen.

The fact that the primary use is not residential?

Not residential?

 

[CBBoston]

Marriot condoed many of their hotels back in the 80s. From what I remember their main motivator was they could net more money this way rather than as a traditional bulk sale. Clearly they knew individual unit buyer weren't as motivated by returns.

 

[JRS at OBX]

Not residential, as in most residents do not live there full time. I do not consider a hotel to be residential and a condotel is a hotel with multiple owners. Many condotels limit the time you can use the unit although some will allow you to live there full time.

I've stayed in a condotel unit before. I rented the room for a few nights in Myrtle Beach. I wouldn't have known it was a condotel if there wasn't a sales office located right across from the front desk, near the bellhop stand.