Frequently Asked Questions

Hotel-branded residences are just like other forms of residential property, just better. They are typically located in the same building or resort as a luxury hotel and enjoy the services, amenities, management and social aspects of the hotel environment. While some properties allow owners to rent the residences, or even offer an optional rental program through the hotel, most hotel-branded residences are designed to provide privacy from hotel guests. When affiliated with a major hotel chain, the residences are typically branded by the hotel chain, although there are sometimes restrictions on the residence owners' use of the brand.

Benefits of owning a hotel-branded residence include:

- Trophy Status: Hotel-branded residences are often the most desirable properties in their respective market areas. They generally represent high-quality architecture, interior design and construction quality in desirable urban or resort locations, all of which carry the seal of approval of the luxury hotel operators. And it does not hurt to be able to say, as Coco Chanel did, "The Ritz is my home."

- Superior Services & Amenities: Hotel-branded resiences typically have access to a variety of hotel services and amenities on demand. This extends from professionally trained and managed staff to housekeeping, room service, concierge and access to luxury spas, fitness centers, restaurants and bars.

- Stronger Resale Values: Given the property's superlative quality and the globalized nature of the luxury property market, hotel-branded residences are positioned to outperform the prices of the non-branded property market. They are also generally quite rare, helpng to protect property values.

Hotel condominiums make great second homes and investments. Think of a hotel condominium as a hotel room, suite, or resort villa that you can buy. As the owner, you can stay there for a period of time during the year - usually up to 60 to 180 days per year - and when not in residence, it will be rented out by the hotel. Revenue from rentals is then split with the owner based on a rental program agreement with the hotel, with generally 40 to 50% of the proceeds paid to the owner. The purchase typically comes with a high-end furniture package, which will need to be maintained with the hotel's room standards for guests, although many hotel condominiums come with a locked "owner's closet" so the owner can keep personal belongings secure when hotel guests are using it. These are also known as "hotel condos" or "condo hotels."

Owners of hotel condominiums enjoy the following key benefits:

- Offset Costs: Given that most vacation homes are vacant for 80 to 90 percent of the time, the hotel condominium rental programs help to offset the operating costs of maintaining the property, and depending on the property and the owner's usage may generate substantial positive cash flow.

- Portfolio Diversification: Hotel condominiums are a way of investing in the hotel real estate market. Unlike regular residential property, their values fluctuate closer to the hotel markets, and thus represent a way of investing without increasing your exposure to residential real estate.

- Hassle Free: For many busy individuals and families not certain about when or how often they will use their second home, hotel condominiums represent an easy, hassle-free way to enjoy a second home or an investment property without having to manage it or find rental tenants on their own.

Serviced apartments often refer to extended-stay hotels designed for stays of one week to one year. These properties typically offer furnished suites for those that need more than a hotel room but less than their own apartment. Services such as housekeeping, concierge, laundry, and on-site dining are also sometimes offered, and sometimes serviced apartments can be affiliated, branded, and/or managed by a well-respected global hotel chain.

Supercity Aparthotels is an excellent provider of Serviced Apartments in London. For more information, visit www.SupercityUK.com

Fractionals are sometimes confused with timeshares, but are somewhat different in that they are generally much higher-end, luxury properties for which buyers acquire a higher percentage of the time in the property - anywhere from 1/12 to 1/4 of the annual usage. For buyers looking for second homes of a high standard but do not want to pay as much as a hotel-branded residence or hotel-condominium would cost, this may be a good option.

A destination club is a membership-based structure that sells access to a portfolio of vacation homes in various locations such as beach or mountain resorts and popular urban destinations. Members can arrange to book access to different residences within the collection for limited portions of time per year. Some destination clubs are equity-based in that the real estate is owned and its members may participate in value appreciation of the underlying properties. Destination clubs are best for those who enjoy vacationing in different destinations instead of repeatedly returning to the same vacation home.