What is a Condotel?
Condotels are operating hotels where the suites are sold as condos. Yes, that’s right, you can buy hotel suites in many of your favorite boutique hotels here in Waikiki. You can then use it as a vacation getaway for yourself, your family, and friends and rent it out in the hotel pool for income the rest of the time. Outrigger, Aqua, Trump and soon to be Ritz-Carlton are some of the participating hotel managers, not a bad list.
Waikiki Condotels Gain in Popularity and Price
Right now condotels, high and low, aren’t just selling quickly, they are selling at higher and higher prices. In the last three months, according to statistics taken from the Honolulu Multiple Listing Service, 70 condotel suites have sold with an average price of $425,000.
Last year in the same period, only 54 sold with an average price of $270,000. That’s an increase of 30% in the number of sales and a 57% increase in the average price. The number sold shows how busy the market is. The higher price shows that the luxury buyer is now in the market vs the bargain investor types that dominated sales last year.
In the past, many buyers were content to let their investment condo sit empty while it appreciated. Today’s buyer wants their money working for them. Rental income is sought by both bargain buyers and luxury buyers alike. Appreciation is great too and we are now seeing that again as well. Condos with income that offsets cost of ownership and perhaps makes a little money are quick to sell.
Condotel after condotel is selling out:
- The Waikiki Shore, Waikiki’s only true beachfront condotel (managed by Outrigger), had 5 condos sell in the last 3 months – as of today there are only 2 left.
- The Ilikai, made famous in the original Hawaii 5-0 TV series opening (managed by Aqua Hotels), had 10 sell and now only 2 suites remain.
- The Luana Outrigger has seen 7 sell and now only 2 remain.
The market is so hot that the newest building planned to be built here in Waikiki will be a condotel and will be managed by none other than the Ritz Carlton. These luxury ocean view suites set above Luxury Row here in Waikiki are slated to begin pre-sales in June.
If you have been thinking about selling a condo at any of these complexes now is a very good time. Send me an email and I would be happy to send you a complementary market price opinion on your unit.
Best Buy Waikiki Condotels
For you buyers, here are some blogs I’ve written about Best Buys in each complex:
- Waikiki Shore: Waikiki’s only condotel right on the beach (managed by Outrigger)
- The Ilikai: One of Waikiki’s most iconic hotels (managed by Aqua)
- The Regency on Beachwalk: Right in the center of Waikiki (managed by Outrigger)
See you on the beach!