Over the past 10 years, Luxury Hotel Advisors has watched as the condo hotel concept has undergone a significant transformation, adapting to changing market demands and economic conditions. This innovative model, which blends private ownership with hotel amenities, has evolved to offer unique benefits to developers, individual owners, and hotel guests alike.

A Brief History

Condo hotels gained popularity in the early 2000s but faced challenges during the 2008 financial crisis. The past decade has seen a resurgence and refinement of the concept, with developers and hoteliers learning from past experiences to create more sustainable and attractive offerings.

Benefits for Developers

The condo hotel model offers several advantages for developers. By pre-selling units, they can secure funding and reduce their exposure to market fluctuations, effectively mitigating financial risk. This approach also allows for diversified revenue streams, with income flowing from both real estate sales and ongoing hotel operations, providing greater financial stability. Additionally, luxury hotel brands can leverage this model to expand their presence without the full capital investment typically required for traditional hotel development.

Advantages for Owners

Individual unit owners in condo hotels enjoy a range of benefits. They have the potential to benefit from real estate appreciation in desirable locations while also generating rental income when their units are not in personal use. The hassle-free ownership experience, with professional management handling maintenance and rentals, is particularly appealing to second-home buyers. Moreover, owners gain access to luxury hotel amenities without bearing the full cost of ownership, creating a unique value proposition.

Perks for Hotel Guests

Hotel guests staying in condo hotel units often find themselves in more spacious accommodations compared to traditional hotel rooms. These units typically offer a home-like atmosphere with fully equipped kitchens and separate living areas, providing a residential feel that many travelers appreciate. The professional management ensures consistent quality and high standards of maintenance and service. Guests also benefit from access to luxury brand experiences, enjoying the amenities and service standards associated with high-end hotel brands.

Recent Trends

The condo hotel sector has seen several notable trends in recent years. Many properties now offer increased flexibility in usage options for owners, striking a balance between personal use and rental potential. The integration of technology, including smart home features and seamless booking systems, has significantly enhanced both the owner and guest experience. There’s also a growing focus on lifestyle, with developments emphasizing unique experiences and local culture to attract buyers and guests. Sustainability has become a key consideration, with many new condo hotel projects incorporating eco-friendly design and operations to appeal to environmentally conscious consumers.


This concept has matured over the past decade, overcoming initial challenges to become a viable and attractive option in the luxury hospitality landscape. By offering benefits to developers, owners, and guests, this model continues to evolve, adapting to new market realities and consumer preferences. If you have plans for a condo hotel development, LHA is uniquely positioned to assist with the development and implementation of the Home Owners Association. This element is not typically part of a hotel development and the integration of home owner needs with hotel guest operations is one of our unique capabilities at LHA.

More articles on condo hotels from LHA here.

About the Author

L.K. Eric Prevette is a 30-year veteran in the hospitality industry and served as CEO of several luxury hotel companies, including RockResorts and the Resort Properties Division of The Irvine Company. He also served as Chief Financial Officer and Chief Development Officer for Rosewood Hotels and Resorts.

Mr. Prevette has spent most of his hospitality career working exclusively with independent luxury and boutique hotel assets. He and his partner, Carlos Lopes, launched Unique Hotels in 1987 and later co-founded Bel Air Hotel Company. During his career, he has successfully repositioned and assisted in the sale of hotel properties valued at more than $500 million and provided valuable asset management and other advisory services to owners and lender of over 50 hotels in the US, Europe, Mexico, the Caribbean and Asia.

Mr. Prevette brings creative financial and operational thinking to each project with the ultimate goal of optimizing asset value. He is now a managing principal with Luxury Hotel Advisors

Please visit https://luxuryhoteladvisors.com for more information.