Understanding Boston's Condo Hotels

Just a few years ago, when the national real estate market was soaring, one of the trendiest properties to buy was the new condo hotels. Although the concept wasn't newly born, it appeared as such when condo hotel projects were sprouting up all over Miami Beach, Orlando, Fort Lauderdale and Las Vegas. What's not to love? The sales pitch is quite attractive; own a condo at one of the newest and hippest hotels in the country, receive all the glorious amenities of the hotel, mingle into the hotel's social scene, enjoy lavish spas and spectacular dining just a few floors below you, and realize the potential for regular rental income.
Unfortunately, as with most things, if its too good to be true, yada, yada, yada. As the real estate market slowed down, many projects in Miami Beach and Las Vegas had the plugs pulled before the first brick was even laid. Of the buyers who purchased pre construction, most had their 10% deposit returned to them. However, even with a few scrapped projects, condo hotels are still here, and because people desire them, more are on their way. Nationwide, 81 projects are currently in construction, with 29 opening this year alone.
Although Boston hardly supports a tourist market anywhere near the size of Florida and Nevada, some of the city's best hotels offer condo ownership. Just opened is the Intercontinental on Atlantic Avenue with 130 condominiums. Within the year, Battery Wharf in the North End will open with 104 units, and, soon after, the Mandarin Oriental with 40. Open for years has been the Residences at the Ritz Carlton Hotel with 53, Four Seasons Place with 90, and Rowes Wharf at the Boston Harbor Hotel with 96 condos. And that's just to name a few of them.
If you're interested in purchasing a residence at a hotel, its important to learn as much as you can about what comes with your ownership. What, if any, interaction exists between the residences and the hotel. Many times, especially in Boston, residences are not allowed to participate in any rental programs. In such cases, the units are generally much larger and more luxurious then the hotel units. If you're interested in learning more about any of the properties listed in this article, please contact us.