A condotel, or condo hotel, is essentially a hotel is which units in the hotel are owned privately. Condominium owners make money by renting out their property when they are not staying in it themselves. The hotel operator manages the rental program and property management, all for a fee, of course (fees vary from project to project). Condotels differ from timeshare projects in that the owner of a condotel condominium owns the property outright, and can live there whenever he or she wants. In point of fact, however, most owners of condominiums in such projects view their purchase mainly as an investment rather than either a vacation property or a permanent residence. Before buying, question the developer on occupancy rates and expected return on investment; professional, ethical developers will be able to provide you with this information. Also check to see if management fees have been calculated into the ROI calculation.

Condotels have the look and feel of a resort development. Many offer room service, pool areas, gym facilities, restaurants, and all the other services that one expects from a hotel. As such, a condotel is very similar to a resort complex with a hotel and a separate, gated condominium community. In the latter kind of development, condominium owners also rent out their property whenever they aren’t staying there.

You might find yourself paying a premium for a condotel—more in fact than you would pay for an ordinary residential condominium—due to the fact that the future rental revenue and the value of the hotel amenities are factored into the pricing. If you are planning on living year round in Costa Rica—or even for only a few months a year—you probably wouldn’t want to live in a condotel. The coming and going of guests, along with the absence of permanent residents, is likely to create a transitory atmosphere that is unappealing to anyone who wants a more home-like environment.

The condotel is a concept that is relatively new to Costa Rica. Today, there are a number of such projects under development, especially in Jacó and surrounding areas. Below are brief descriptions of two condotel projects.

Sonesta Jacó Resort, Jacó (Puntarenas)

The Sonesta Jacó Resort is a luxury development that will comprise six thirteen-story buildings, with a total of 185 condominium units. Owners who place their condominium unit with the hotel rental service (and it’s assumed that nearly every owner will do so) are required to furnish their unit with Sonesta-branded furniture and bedsheets. Buyers of condominium units are promised monthly accounting statements that will allow them to monitor rental revenue.

Both owners and guests of the hotel will have access to a dizzying array of amenities. An expansive entertainment area will feature a beach club, large pools, restaurants, bars, scheduled entertainment events, a conference center, and more.

This 86.5-acre project is located on the road that runs from the main highway to the center of Jacó. Although this condotel isn’t located directly on the beach, all units that are located on the fifth floor or above will have ocean views.

La Joya de Lagarto, Play Lagarto (Guanacaste)

This project is located on a secluded beach next to the tiny fishing village of Lagarto. It’s about a 45-minute drive from Tamarindo (and a 70-minute drive from the Liberia International Airport). When finished, it will comprise 10 ocean-front villas and approximately 30 one-, two-, and three-bedroom condos, each with a swimming pool. (There are also plans to one day add a boutique hotel with 70 to 90 rooms. This means that at some point in the future this project will transform from a condotel development to a hotel resort with gated community project.)

The 22-acre property slopes gently down toward the sea. The design of the show villa—completed at the time of writing—blends elements from Tico-style homes with the clean lines of a contemporary villa. All properties will come fully furnished and owners have the option of delegating maintenance and rental services to the project developers. (Note: at the time of writing, the final 20-minute drive to the property was on gravel roads. Local developers promise to pave this road in the near future.) Project amenities will include restaurants, swimming pools, beach club, spa, and fitness center.

La Joya de Lagarto is different from Sonesta Jacó Resort in nearly every way, and will thus likely attract a different clientele. Located in a quiet, secluded, and pristine corner of Guanacaste—and with relatively few villas and condos—this project will appeal to people who are more interested in tranquility and unspoiled nature than in a life of beach parties and action.