When it comes to consumer interest in second home investment, Americans are quite eager to do so as long as they are getting a “good deal”.

Vacation and investment homes remain a strong and bullish niche in the real estate market, both as a means of providing a get-away as well as a return on investment.

In a recent survey from HomePages.com, it was found that 21 percent of consumers wanted to purchase a second home within a year and another 42 percent were considering buying within two to six years. Interestingly, one third of the respondents did not consider proximity to their primary home as a major factor in their decision-making. In fact, many were happy to fly to unique destinations to get away from their current surroundings.

With an emphasis on a promising investment, both financially and recreationally, many consumers have begun to look to condotels, a new trend in real estate. Condotels allow buyers to purchase individual units in a hotel and give them the option to enroll in a rental program, opening their units to hotel guests and sharing in on the rental income. If the owners do not want to participate in the rental program, they may simply just use their condotel unit as an in-town home. However, if they are involved in renting, they must be willing to incur extra costs. Owners may have to purchase additional insurance and a higher maintenance package in addition to their regular mortgage.

The biggest appeal in owning a condotel is that owners and guests may enjoy the typical perks of hotel services. Common amenities are better and provide many more choices for occupants than in the typical condo building. They may offer many more services including child day-care, pet grooming, housekeeping, dry-cleaning, and postal service. Also, fine dining restaurants and high-end retail stores provide convenience for owners and guests. In addition, many condotels are in prime locations as they are backed by some of the biggest names in the hotel industry. Common backers are the Ritz-Carlton, the W hotel, and Trump. These buildings are superb in architectural design and most are in close proximity to beaches, shopping, nightlife, and golf courses.

Condotels may also emerge from aging, vintage hotel conversions. Most cities provide tax breaks and other incentives for the reuse of older buildings. This is a great way to preserve the history of a city’s architecture and use these beautiful landmarks as attractive places to stay.

Unit prices can range from $1200 to $1450 per square foot. Of course, four or five-star hotel condos on beachfront locations may even surpass the $1 million mark. The units tend to be smaller than comparably priced traditional condos. They usually have smaller kitchens as well as a pre-determined layout and décor. Those buyers who choose to rent out their units must comply with the overall look of the condo hotel and must therefore be open to a set decorative style. Therefore, owners are not allowed to have personal property in the units for decorative or storage reasons.

Despite such few limitations, owners may enjoy the fact that they have little responsibility in the maintenance of their units. Management companies are chosen carefully to provide nothing but the utmost care and service one could expect. A condo hotel operation must run smoothly as competition is fierce, prices are high, and guests and owners are demanding. Furthermore, with so many services being offered, the day-to-day activities of everyone involved must be fluid and precise. Their businesses depend on it.

In Chicago, perhaps the most famous condotel is the Trump International Hotel and Tower. Sales for the tower were extremely successful both locally and from outside investors. The building promises state-of-the art amenities, a beautiful architectural design, and of course, superb views of the city’s skyline, the Chicago River, and Lake Michigan. Other high-profile condotel projects include The Hotel Blake, the Aldens Hotel, Hotel 71, and the Elysian.

Other popular U.S. markets for condotels include New York, Boston, Miami, and Las Vegas. All of the cities that offer condo hotels are ones, which see heavy traffic throughout the year from visitors and vacationers. Miami, which started the condotel boom about three years ago, is awaiting the completion of 11,600 units. Las Vegas, too, is currently seeing several high-end projects in downtown and is expecting 28,300 units. Areas like these, that are progressively growing in popularity and therefore expanding, will undoubtedly prove to be profitable in the long run.