How condo hotel system works?
- Michal Polesný
- Apr 23
- 3 min read
Updated: May 1
If you're looking for a hands-off real estate investment with income potential, the condo hotel model is worth exploring. Especially popular in tourist and business hubs, condo hotels offer a unique blend of property ownership and professional hospitality management. Here's how the system works in Poland.
What Is a Condo Hotel?
A condo hotel (also known as a condotel) is a building operated as a hotel but with units individually owned by private investors. When you invest, you purchase a specific unit—such as a studio or suite—within the property. That unit is then made available to guests just like any other hotel room.
The key difference? You, the owner, earn a share of the rental income.
How It Works in Practice
1. Purchase Process
Investors buy units much like they would buy an apartment. The transaction typically involves a notarial deed and entry into the Polish land registry. Many developers offer turnkey solutions, including fully furnished units ready for immediate rental.
2. Management Agreement
Once you own the unit, it’s managed by a hotel operator—usually the same developer or a partnered hospitality firm. They handle everything:
Guest check-ins and bookings
Daily cleaning and maintenance
Repairs and furnishing updates
Marketing and customer service
This means you don’t have to worry about being a landlord or dealing with guests directly.
3. Revenue Model
The income structure can vary, but a common arrangement in Poland is:
Revenue share: The hotel operator manages the property and takes a portion of the rental income, while you, the owner, receive the majority—typically 70% to you and 30% to the operator.
Some developments may also offer a guaranteed return (e.g. 6–8% annually), but these are less common and often apply only in the early years of operation.
In some cases, hybrid models are available, where you receive a minimum base return and also share in additional profits above a certain threshold.
4. Owner Use
Many condo hotel agreements allow you to use your unit personally for a set number of days per year—ideal if you'd like to vacation in your property. The exact number of nights and booking conditions are detailed in the management agreement.
5. Exit Options
Most contracts include a minimum holding period, often 5 years. After that, you’re free to resell the unit on the open market or within the developer’s network. Appreciation potential and rental history can both influence the resale value.
Key Things to Consider
While the condo hotel model is designed to be low-effort, it’s important to do your homework:
Review the management contract carefully to understand fees, obligations, and your share of the income.
Check the operator’s track record—especially in terms of occupancy rates and guest reviews.
Understand the tax implications, both in Poland and in your home country. Condo hotels may involve VAT, income tax, and possibly double taxation treaties.
Evaluate the location. Even within this model, location is still the number one factor influencing performance.
Final Thoughts
Condo hotels in Poland offer a streamlined way to invest in real estate without becoming a hands-on landlord. You own a physical asset, enjoy a share of the rental income, and benefit from professional management. It’s a model that combines property ownership with the ease of a passive investment.
At Solacity, we help investors like you find vetted condo hotel opportunities that offer reliable returns and minimal hassle. If you're curious about whether this model fits your goals, reach out to us for a personalized consultation.
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