A new trend in home ownership is Condo Hotels. These properties are basically individually owned hotel rooms, but they are managed by the hotel. Usually the management will take around a 50% fee for renting the condo unit. This is a great way for people to get into expensive markets, with the ability to have the unit rented to make extra money. This can help make the mortgage payment for people with mortgages. They are taken care of by the association, but the owner can go use thier unit whenever they want. Usually they do have to give the association advanced notice that they will be staying there, so the unit does not get rented by someone else.
Condo Hotels first hit the market in 2006. In that year there were more than 50,000 units sold. The market slowed down in 2007, a lot to do with mortagages harder to get. The market is expected to turn around in 2008. This type of property is also great for people that need to do a 1031 exchange. These are also great for people that want high activity markets such as Hawaii, New York or Las Vegas.