Owning a second home in a desirable vacation destination is a dream for many people. However, the high costs and burden of maintaining a property far from their primary residence can be a barrier to the dream-come-true lifestyle.
That’s where partnerships between real estate companies and a luxury hotel or resort can come into play. We’re not talking about basic timeshare programs where you buy into a package that gives you access to a few weeks a year at one (or various) properties. This is bigger than all that.
This is a financial investment that can reap great returns if handled properly, provided the buyer puts in the time upfront to do substantial research. Hotels are looking to cash in on this opportunity, too. It makes a lot of sense for hotel developers to secure ample funds at the beginning of new construction to support new-build projects or additional investment.
High net worth individuals, who may already have plenty of diversification in their investment portfolio, are turning to real estate options in collaboration with luxury hotel brands for the added variety (and perks) they offer. These are residences sold as luxury abodes attached to major hotel and resort brand properties and featuring the amenities that come with.
There is a certain cachet that comes with owning a second (or third, or fourth) home that is part of Ritz-Carlton or St. Regis, for example. Developers know this and seek out the brand (and often a celebrity architect or designer) they believe best fits with the market and the potential price point they look for from investors.
Around the world these investment opportunities are proliferating. If you’re looking to put your hard-earned money into luxury real estate that carries high-end hotel prestige – whether it’s for the travel opportunities it can encourage, or the ability to earn extra income through a hotel’s rental pool – there are plenty to consider.
HOW IT USUALLY WORKS
These large mixed-use resorts consist of both traditional hotel rooms plus condominiums or residential units that can be purchased outright (think villas and multi-bedroom homes). Owners have the ability to use them, usually whenever they wish (based upon if they own it outright or have chosen a fractional ownership) along with the accompanying amenities and facilities of the hotel or resort.
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