CoTels

One of the big trends in the hotel industry today is the creation of permanent residences within a hotel property with the additional offering of the regular hotel services.

Although this is not a new thing (some commentators point back to the Cammelback Inn in the 1960s), it’s the renewed vigour of the hotel industry to pursue this offering that has caught our eye. Starwood Hotels have created a whole floor of permanent residences at the prestigious St Regis in New York and their W Hotel chain are now provide opportunities to buy into the Wonderland lifestyle.

In fact it’s happening all over the US from Vegas, to Aspen to Florida. The Miami Herald notes that more than 30 condo-hotel projects have been built, are being converted or are planned from Fort Lauderdale to Key Biscayne. The Plaza Hotel in New York is being refurbished and will reopen in late 2006 with 200 condos and 150 hotel rooms as well as a multi-level luxury department store, Luxist reports.

Travel & Leisure define the phenomenon as:

In this type of real estate deal, a room or suite is sold to an individual. The buyer can opt to place the unit in a rental program and receive revenue to offset costs for the balance of the year. All residents have access to hotel services and amenities. The purchase price can vary from several hundred thousand to several million dollars. In some cases, rental programs will warehouse your personal belongings (which are then reinstalled exactly as you left them).

Hotel Chatter coins these ‘condo hotels’ as CoTels. They say,

CoTels are all the rage these days. From Miami to Vegas developers are touting the values of a CoTel. No more hotel bills, but the same high service standards, plus you have equity to boot. Some CoTels will even rent your room when you are out of town and give you a nice kickback.

Some of this trend has been fueled by baby boomers looking for retirement homes, whilst boomer’s kids are looking for second homes. The trend of ‘togetherness’ (of friends and family coming to a resort to hang together)could also be a driving force here. Setai developer Jonathan Breene adds:

"Having the fridge stocked in advance or clothes cleaned and stored by someone else is incredibly alluring for over-scheduled individuals. Today, people want everything done for them."

Services have reached a new level, from private chefs to 24-hour butlers. Concierges can also arrange jet or yacht charters and snag elusive restaurant reservations.

Hotel Chatter’s On Ben Afflick’s Room At The Aqua Blue, Las Vegas
Miami Herald On Condo Hotels Are This Year’s Chic
Travel & Leisure On Home Away From Home
Luxist On Plans For The Plaza Hotel