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On the basis of ownership, hotels can be classified into two categories :
- Timeshare Hotels and Resorts
- Condominium Hotel
Timeshare Hotels and Resorts
A timeshare can be defined as an advance purchase of time in holiday accommodation. The purchaser pays a capital sum to acquire this timeshare and then pays an annual contribution towards the maintenance of the property. The period of time sold is generally based on the modules weeks.
Timeshare is a marketing concept in which hotels are marketed on a membership basis. Members can avail accommodation in the timeshare property by paying the upfront advance for the stay of a fixed number of days every year for a specific number of years.
Examples of International brands for timeshare: Disney, Hyatt, Starwood, Marriott, Four Seasons, Hilton, Ritz Carlton, Accor, and Domestic Brands are Club Mahindra, Kamat Group, Sterling resort, Toshali Resort, Cambay group, etc.
These properties typically resort timeshare units, in which multiple parties hold rights to use the property, and each sharer is allotted a period of time (typically one week, and almost always the same time every year ) in which they may use the property. The sharer holds no claim to ownership of the property.
This form of lodging has spawned a variety of products sold on similar occupancy schemes; cars, planes, boats, and luxury fractional properties.
Condominium Hotels
They are apartotels or apartment hotels. These units are developed on joint ownership basis. Each ownership purchases and has full right of and the unit he has purchased and shares the most common to the complex such as taxes, insurance, maintenance and upkeep of public areas including swimming pool, health club, parking, security, air conditioning, heating, cable, broadband, etc. Each owner can occupy or sell his unit independently but is required to follow the rules and regulations laid by the management. The owner enjoys the benefits of property, appreciation but needs not to bother about its maintenance, security, upkeep, insurance, etc. He is required to pay yearly maintenance charges. In some cases, a corpus can be made and the maintenance expenses are paid from the interest earned from the corpus. In some cases, the management can help the owner is renting out the property. They take full responsibility for the owners’ units’ safety and also pay to the owner a major portion of the rent earned from renting out. Usually, the management requests the owners to rent out in case of major conferences. The management earns a major portion by renting out conference hall and from catering.
A condominium, frequently shortened to condo, is a type of real estate divided into several units that are each separately owned.
Residential condominiums are frequently constructed as apartment buildings, but there had been an increase in the number of “detached condominiums” which look exactly like single-family homes but in which the yards, building exteriors, and streets are jointly owned and jointly maintained by a community association.
Unlike apartments, which are leased by their tenants, condominium units are owned outright. Additionally, the owners of the individual units also collectively own the common areas of the property, such as hallways, walkways, laundry rooms, etc.; as well as common utilities and amenities, such as the HVAC system, elevators, and so on. Many shopping malls are industrial condominia in which the individual retail and office spaces are owned by the businesses that occupy them while the common areas of the mall are collectively owned by all the business entities that own the individual spaces.
Some Other Concepts Related to Timeshares
Time-sharing
Unlike a vacation club, time-sharing involves the purchase of the real estate. You buy a week or weeks to use a furnished condo, cabins, or other accommodation that offers all the comforts of home, including a kitchen. Time-sharing limits travel options to one location, although often you have the opportunity to swap with owners of timeshares elsewhere in the country or the world.
Vacation Clubs
Membership in vacation clubs covers multiple locations. Some vacation clubs resemble timeshares in that they offer fully-furnished, home-style accommodations. Clubs such as one offered by Disney provide discounts to all of its resorts and theme parks. Hilton club members receive discounts at all the chain’s hotels. Ask if the club will give you a trial membership so you don’t have to commit yourself immediately.
Financial Obligations
Timeshare owners pay an initial fee to purchase their block of time and then annual maintenance fees that can rise over time. They can sell their block of time, much like any other real estate transaction. Vacation club members pay a single annual membership fee and generally do not have membership options.