BANGALORE: If you are planning to buy a second home, you could consider buying a unit in a condo hotel.
Condo hotels, a relatively new concept in India, allow buyers to own a hotel room. The owner is entitled to 21 to 60 days of use of the room in a year, and the hotel management uses the rest of the time to generate revenues from tenants. The rental proceeds are split between the owner and the hotel chain.
It’s different from a vacation timeshare, where you don’t own an entire room and you are not entitled to a share of the profits. You are only entitled to use any of the rooms in the hotel chain for typically a week.
Many condo hotels across the world are managed by luxury hotel brands like Marriott and Four Seasons . They offer a host of amenities and buyers share the cost of upkeep by way of annual maintenance fees.
In India, some local players are exploring the condo hotel concept. Tuscany Terraces, owned by hospitality player Silvexity Group, has sold 100 units on the condo model at their property in Neral, 80 kms from Mumbai. The resort has sold a hotel room of 691 sft for Rs 28 lakh, and a 1,100 sft room for Rs 46 lakh. "We operate on a fixed rental model with assured return on clients’ capital," said Amod Kumar Singh, VP at Silvexity.
Mohili Meadows, part of Cinnamon Holidays, is selling studios, 1 BHK and duplexes in its resort property in Karjat near Mumbai. Properties vary from 553 sft to 2,375 sft and starts at Rs 17.37 lakh. The demand for condo hotels is emerging in places like Lonavala and Alibaug, which are big markets for second homes.
"Hospitality players are looking at raising equity from individuals and condos provide that option. It’s financially feasible especially when private equity money is expensive. Typically, hotel properties give higher yields, about 20% over time, than commercial properties," said Anand Narayanan, national director - residential at property consultancy Knight Frank India.
B S Rathor, chairman of All India Resort Development Association (AIRDA), calls condo hotels a "product extension in the vacation ownership space" . He said a comprehensive legal framework needs to be drafted for such products, indicating that it could otherwise lead to legal issues.
Since condo hotels are a nascent phenomenon, there are challenges such as the absence of a resale market and higher operational risks.
FAQs
Can you invest in a single hotel room in a resort or hotel complex? The short answer is yes. At Ruebush Group we build and operate boutique hotels and we allow anyone to buy a hotel room and earn lucrative monthly income from the daily bookings. Looking for a great investment?
How long can you stay in hotel in India? ›
The rule of thumb is generally: a guest can stay as long as they want.
Can you use a hotel room for a few hours? ›
Depending on the hotel, it's possible to book from 2 hours up to a full day. Regardless of the time you want to relax, you can choose and book a hotel room for a few hours to meet your expectations.
Can you stay in a hotel for a long period of time? ›
Some hotels may have specific rules regarding the maximum length of stay, while others may have limitations on amenities or services available for long-term guests. It's also important to inquire about any additional fees or charges that may apply to extended stays, such as housekeeping fees or parking fees.
How much money do you get if you own a hotel? ›
According to a report by Hotel Management, the average hotel owner in the United States makes between $50,000 to $150,000 per year in profit per year.
What is it called when you own a hotel room? ›
A condotel is a condominium project that is operated as a hotel with a registration desk, cleaning service and more. The units are typically individually owned. Unit owners also have the option to place their unit in the hotel's rental program where it is rented out like any other hotel room to paying guests.
How long can you live in India as a tourist? ›
Maximum stay by a foreigner in India on an e-Tourist visa or regular paper Tourist visa or both in one calendar year shall be restricted to 180 days. Foreign nationals will not be allowed to enter India through land routes on e-Tourist Visa/regular paper Tourist Visa.
Can I stay in India for a year? ›
All foreign nationals who intend to stay in India for more than 90 days as a tourist must obtain the relevant Indian visa from an embassy. Visitors from a select few countries do not require a visa to visit India as a tourist, although one of these has a limit of 90 days (for longer stays, an embassy visa is required).
How many months can you stay in India? ›
In India, the travel authorization and visa requirements for foreign nationals specify the time they are allowed to stay in the country. The time allowed to stay in India depends on the visa: Validity of the Indian Tourist visa: 180 days Per Entry. Validity of the Indian Business visa: 180 days in Total.
What is the 24 hour rule for hotels? ›
Cancellations made within 24 hours of your scheduled arrival date normally mean you'll be charged in full for the night, but there are exceptions to every rule!
Considerations Before Going to a Hotel Just to Shower
Some hotels may have restrictions on non-guests using their amenities, while others may charge a fee for day-use access. It's best to check the hotel's website or call ahead to inquire about their policies and any fees that may apply.
What is 72 hour rule in hotel? ›
Most hotels have a '72-hour' rule, which means guests can leave the sign on before hotel staff are allowed to enter the room with security.
Are hotels cheaper if you stay longer? ›
Most extended stay guests book accommodations for at least one week. This is because the average nightly rate is discounted when guests stay longer.
Is it better to live in a hotel or apartment? ›
And depending on the hotel, you may get access to amenities such as a gym, pool, spa, and more. With apartments, you can find ones that are furnished and have similar amenities to hotels. You probably won't get daily housekeeping, but the odds are you'll get more space in an apartment as opposed to living in a hotel.
Why do people stay in hotels long term? ›
With amenities such as self-serve laundry and in-suite kitchens, they're a cost-effective and convenient alternative to renting a traditional apartment. Because guests stay for a longer period of time, extended stay hotels typically offer discounted rates.
Can you buy a hotel and turn it into a house? ›
You absolutely can.” Rubin argues that many other large commercial spaces that are not being used can be repurposed into affordable housing and he has been doing it for years.
How can I buy a hotel? ›
Keep reading to learn the step-by-step process of buying a hotel.
- Search for Property. Start by identifying the type of hotel you would like to own. ...
- Locate a Hotel. ...
- Conduct Due Diligence. ...
- Evaluate Financing Options. ...
- Negotiate Final Terms. ...
- Close on Financing and Purchase. ...
- Sign Contracts. ...
- Determining Return on Investment.
Chain hotel owners are individuals or companies that own multiple hotels under the same brand. These hotels are typically managed by a third-party management company or the brand itself. Chain hotel owners may or may not live on the premises, as it depends on the specific management structure in place.
Is owning a hotel real estate? ›
The first thing anybody needs to know about hotel investment is that hotels are unlike any other properties. It is a real estate property but it is so different from any other property type.
