Timeshare is an established concept and has long been considered to be the best home rental and ownership model available. That line of conventional thinking is now being shaken up by the condo hotel and now there are definitely more options and you should ask yourself condo hotel or timeshare?
Spot the difference
The first point to address is the difference between a condo hotel opportunity and a timeshare.
What you are doing when you buy a timeshare is to choose a specific location and a specified week or weeks in which you would like to be able to use your chosen property each year.
With a condo hotel, there is a greater element of flexibility with regard to how often you choose to use the unit that you have invested in.
Investing in a condo hotel does not mean that you can simply turn it into your permanent residence and there are restrictions in place to prevent this scenario.
Investing in a condo hotel does however give you a greater level of flexibility of use in comparison to the rigidity of a specific location and week that you are buying with a timeshare.
Popular tourist venues like Park City are now offering condo hotel options and you can see why this would be attractive to investors as you could benefit from a steady stream of visitors who want all of the amenities of a luxury hotel.
It is important to also understand the distinction between a condo hotel and a more traditional vacation apartment condominium.
A condo hotel is basically an opportunity to acquire a lavishly appointed and furnished condominium suite within an established hotel environment, with all the amenities that you would expect to see.
A condo hotel is not the typical second home scenario that people have been accustomed to under the timeshare banner and of course, you also get the flexibility of using the suite yourself almost as often as you would want to.
Location and value for money
If you were trying to compare a timeshare against a condo hotel in terms of the quality of the location, both types of ownership tend to be located in desirable and accessible locations, so neither can be considered superior to the other on that score.
Location is obviously an important part of your decision-making process but you should be able to find a condo hotel and a timeshare opportunity you like, so another point to consider is value for money.
You will probably find that a timeshare might be available at a lower price than a condo hotel but there are differences in the structure of the deals that you need to consider rather than simply making a direct price comparison.
With a timeshare, you are entitled to the revenue generated from renting out the weeks that you have bought, but the rest of the year is for the benefit of other owners.
With a condo hotel, you receive deed ownership of the property and if you want to rent it out throughout the year you should be able to generate a greater income than just owning one or two weeks as you do under a timeshare arrangement.
The traditional timeshare has been shaken up by the concept of condo hotels and it is well worth looking at both opportunities on their own merits, if you are thinking of investing.
Jacquelyn John earns her living in the travel industry and spends a lot of her spare time hitting the slopes. She enjoys being able to share her experiences online and is a regular contributor for a number of travel-related websites.