Tulum- Investing in a Condo Hotel

[Kevin Stewart]

I've been reading the forum thread(s) on Tulum, but they date back a few years, so I wanted to get some current insight into the market as we are considering investing in a Condo/Hotel project there. 

The property woud be managed by a third party hotel management company, and offer many ammenities like mini-market, restaurant, coffee shop, gym, wellness center. Guests will have to 24 hour room service and access to Tulum beach clubs. 

Returns are projected to be between 11-16% *conservatively*. Management takes a 20% operations fee. Owners get use of their unit for 50 days a year, and can put it back into the rental "pool" if they don't want to use it. You have the option of using your 50 days at another one of their hotel properties worldwide. Lastly, returns are pooled and paid out based on the performance of the entire hotel, not based on individual units. 

We have not invested in this type of asset class before, but my initial feeling is that it feels a bit like a time-share. I like that it is professionally managed, and we do not need to worry about whether our individual unit is rented, however I do have concerns about resale with this business model. 

Any insights into this type of asset class (specifically in Mexico), as well as investing in Tulum is greatly appreciated. Thank you!