Investing in Condotels to respond for the increasing Tourism

by PRIME Philippines Research and Advisory  June 30, 2017

Thinking of investing in condominiums? Hotels? Well, why not both? Owning a place with valet drivers, room services, swimming pools, gyms, and spa at the same time is not a dream anymore and only a step away as condotels can provide the convenience and luxury of both condominiums and hotels. Whether the purpose is for personal use or passive income, condotels is a great investment option given its increasing demand in the Philippines.


With new developments in infrastructures under the Duterte’s Administration, tourism is expected to increase in the following years. To name a few, the Philippines is going to have its very first resort airport in Cebu, as well as its third connecting bridge to the said airport, increasing its accessibility. Development plans such as the installation of subways and new MRT and LRT lines, rehabilitation of ports and airports, as well as development of new roads, are also already laid out. Aside from infrastructural investments, the development of Okada Manila, which is a possible trend-setter for the gaming and leisure industry, as well as the increased interest of foreign groups like Nickelodeon in places like Palawan, which can spearhead further interest of foreign firms to develop more theme parks in the Philippines, will invite more tourists to visit Philippines. As the saying goes, “It is more fun in the Philippines.”


Given the increasing tourism, condotel is a great investment option. A condotel is a condominium that is operated like a hotel. Condotels provide amenities similar to a regular condominium combined with amenities provided by a hotel. The main difference between a condominium and a condotel is that in a condo unit, you call the shots. You own the condo and whatever you do with it is up to you. On the other hand, in a condotel, you partner with the hotel. Unlike some condominiums, condotels usually come fully-furnished. Given that condotels are supposed to give a luxurious hotel-like experience, changing the structure of the unit is prohibited.


Condotels are also very convenient. They can be used not only as a home or a place to stay but also as a money-making machine. Imagine, after using the room for your own convenience, someone else will stay there the following day and pay you the corresponding rent as the hotel operators will manage the hotel while you are gone, optimizing the use of the room. You sit back, relax, and enjoy the cash flows.



Overall, tourists prefer to stay in affordable but luxurious hotels rather than cheap apartments. With luxurious hotels always getting fully-booked, condotels can provide the extra rooms that the tourists need. This high demand coming from the foreign tourists, as well as the local travelers, is expected to increase in the following years due to the said developments within the country. In the end, the fundamental question remains: With this trend of increasing tourism, how else can we take advantage of it? What other investment opportunities can be derived from it?