While the term “condotel” is nothing new, its meaning has changed dramatically since the hotel-condominium hybrids were introduced 30 years ago. Back then, a condotel unit might look - and feel - like a cramped, converted hotel room.

Today’s condotels - privately owned condominium units available for short-term rental - are more spacious, with some properties boasting up to 4,000 square feet and amenities such as business centers, retail shops and restaurants, spas and exercise facilities.

For buyers looking for a vacation property with rental-income potential, condotel units can be priced lower than traditional condominiums, and many are completely furnished and equipped, making them ideal for out-of-town owners. Those same “feels like home” qualities appeal to vacationers seeking an alternative to the traditional hotel room. In fact, popular vacation “hot spots” such as Las Vegas, Orlando and Waikiki are seeing a surge in condotel development with some hotels being embarked for conversion to condotel units and other properties being built exclusively for the short-term rental market.

 This Report is brought to you by Paula Clark’s Monthly Real Estate Newsletter for Bergen County’s Pascack Valley and Northern Valley from The Gooder Group.