“Condohotels”, the trend in real estate for the reactivation of tourism in Mexico

“Condohotels” are not a new topic in Mexico; however, they have gained greater strength for the economic reactivation in the Turistic zones of the country in recent years.

It is a business model that promotes the acquisition of a property not to inhabit it, but for him rent short, medium and long stays with the comforts of a hotel.

Marisol Gutiérrez, head of Customer Services at the real estate services firm Levy Holding, explained that this type of facility has rebounded in destinations with options to relax and escape the hustle and bustle of big cities, where the climate and landscapes are ideal for resting as much for Mexicans as well as for foreigners, which brings with it income in dollars or euros due to international demand.

“Under this scheme, the owner’s investment will never lose value; well the property profitability is always increasing thanks to the added value of the place, for the tourist destination and the rate per night”, commented the specialist.

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Goodwill plus rent

According to Gutiérrez, the real estate firm HEI Community offers this business model in areas such as Lake Chapala or the Riviera Nayarit, which generate an attractive return for the percentage of capital gains plus the percentage of rent; without forgetting that the owner can enjoy the unit four weeks a year.

In addition, owners should not worry about the administration and monitoring of the property, since, through HEI Travel, they will be able to access real-time occupancy results, income, reviews, reservation status, reports and trends on their property.

It is also in charge of the daily cleaning of the units, cleaning and hygiene supplies, service personnel, among others.

In other words, the owner hands over the management of the property to HEI Travel and, in addition, enters a rental ‘pool’ where he receives an additional income based on the profits from the real estate development and regardless of the size of the unit.

“Punto Laguna in Ajijic on the Chapala Riverside, is an example of this type of property. Thanks to its location in an area renowned for social events during the weekend, hotel occupancy is in high demand. Thus, the “condohotels” give the user the advantage of having a private space, with the comforts of a hotel and at a strategic point”, added Gutiérrez.

In Mexico, HEI Community not only manages “condo-hotels”; It is also responsible for the maintenance of estate or administration of shared workspaces known as “coworking”.