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Condo hotels are gaining momentum as both an investment vehicle and a hospitality model. Blending individual ownership with professional resort management, they allow owners to enjoy personal use of their unit while generating income when it’s rented to guests. For developers, operators, and buyers, condo hotels represent a hybrid that combines the benefits of real estate with the revenue potential of hospitality.
But success in this model requires more than just location and design. Owners must understand the unique dynamics of condo hotels to protect their investment and maximize returns.
At Brittain Resorts & Hotels (BRH), we’ve managed condo hotel properties for decades. Here are five things every owner should know about the rise of this model.
Rental Income Potential Depends on Management Quality
The biggest draw of a condo hotel is rental income, but performance varies dramatically. A professionally managed rental program with strong marketing, revenue management, and guest service can produce far higher returns than self-managed or ad-hoc rental efforts.
HOA and Owner Alignment Is Critical
Unlike traditional hotels, condo hotels have HOAs overseeing common areas and shared expenses. Strong alignment between the rental program and the HOA ensures that maintenance, amenities, and owner interests are all supported. Misalignment, on the other hand, can hurt guest satisfaction and long-term property value.
OTA Dependence Can Be Reduced
Many condo hotels fall into the trap of heavy OTA dependence, losing significant revenue to commissions. At BRH, our portfolio averages just 15% OTA dependence thanks to robust repeat guest programs and direct booking strategies. Owners should look for managers who can demonstrate this kind of balance.
Preventative Maintenance Protects Asset Value
Deferred maintenance is one of the fastest ways to erode both rental income and property value. Owners should ensure that their management company has a preventative maintenance program and adequately funded reserve accounts to keep the property competitive for years to come.
Data and Marketing Drive Repeat Guests
The most profitable condo hotels don’t just sell stays — they build relationships. Leveraging guest data for personalized marketing, loyalty programs, and seasonal offers turns first-time visitors into loyal repeat guests. This drives higher occupancy, steadier cash flow, and stronger long-term returns.
The Bottom Line
Owner partnerships that last are built on more than contracts. They’re built on alignment, transparency, innovation, flexibility, and performance.
At Brittain Resorts & Hotels, these principles guide every relationship we form, which is why so many of our owner partnerships have not only lasted, but grown over decades.
Want to learn more about how BRH helps owners succeed in the condo hotel model? Connect with us to explore the opportunities.