Rental Property Investor · Las Vegas, NV · Member since 2016 · 16 posts · 14 votes
What is the condo/hotel market generally like in Orlando. I'm investigating purchasing a unit, and my main experience is here in Las Vegas. Here it is nearly impossible to get financing for one, and the rental demand is hit or miss. Is the hotel occupancy rate strong in the Disney area? Is the demand for these units very good or great? Or is the market getting flooded with tons of Condotel projects and the future looking bleak? Thanks!
Real Estate Agent · Orlando, FL · Member since 2008 · 551 posts · 159 votes
10y
@Anthony Podloski condotels are best when you are buying for personal use and wish to offset the holding costs. In the Disney area I would suggest luxury units. A few years ago Disney built several midrange hotels that they book with park packages that come with perks. If looking purely for investment purposes townhomes and single family homes zoned for short term rental are an option and may provide a more predictable occupancy profile provided it is properly managed. We had a rush of new build projects here about 6 years ago. Not so much recently. I have seen, in passing, mortgage brokers offering condotel financing.
Lender · Chicago, IL · Member since 2016 · 17 posts · 5 votes
9y
@Anthony Podloski The hotel market in Orlando is stable, running high occupancy but lower ADRs. I currently have 3 hotels listed for sale in the Orlando tourist market that fit this exact criteria. If you're still looking at investing in Orlando or just want to bounce ideas back and forth, send me a PM!
Houston, TX · Member since 2016 · 34 posts · 9 votes
9y
it seems like their would be too many variables involved in a condotel to try any actually predict cashflow.....probably not a good idea as an investment in my opinion
Brooklyn, NY · Member since 2015 · 3 posts · 1 vote
9y
@Chris Grenier, I'm curious what are some of the specific issues or reasons with condo hotels in the Orlando area that you are recommending against. I've looked at some units in the Grove and considering for investment as well as a place for some family members to use for vacation purposes. Thanks in advance for any information.
@Chris Grenier, I'm curious what are some of the specific issues or reasons with condo hotels in the Orlando area that you are recommending against. I've looked at some units in the Grove and considering for investment as well as a place for some family members to use for vacation purposes. Thanks in advance for any information.
Hey in terms of an investment...they are awful. You'd be lucky to break even! And I am saying this from experience selling them to clients who 'had to have them'.
The Grove looks good on paper, its a cool new resort but there is 0% chance of capital growth on those things and as soon as the rental guarantee ends it's downhill from there. If you are looking for somewhere for vacation purposes and be content if the unit at least pays for itself then it's completely a reasonable purchase but looking at it for any actual investment opportunity it's awful.