What is Timeshare? – What Are The Differences Between Timeshare & Condotel?

• 20 July 2021
• Local News
• 2714 Views

Timeshare investment is the division of ownership of a unit in a hotel or resort into smaller parts/shares so that investors can purchase shares at an affordable price. Shares are divided based on usage time, typically in one-week increments. Thus, with 52 weeks a year, the property will have a total of 52 shares.

For instance, if you purchase two shares, you will have the right to stay or own the unit for two weeks every year. Your name will be on the title deed together with other owners except that you purchase in form of a leased ownership.

The timeshare model can be applied to many different types of properties, such as vacation resorts, condominiums, apartments, and campgrounds. However, it is popular within vacation locales.

The pros of investing in a timeshare are, firstly, the investment size is affordable as you buy only one share, not the whole unit. However, you become one of the owners of the well-known resort in a top tourist destination spot and enjoy being able to stay every year.

For some, this is better than renting a random hotel every year without knowing what to expect. You will also get to be the owner and you can trade your share for profit at any time.

However, such an investment also has drawbacks. First, you will not get an annual return on this investment. Timeshares are different from condotels where you own the whole unit, but the complex is managed by the big hotel chain. With a condotel, you get will annual rental income plus free accommodation at a specific time per year. (Read more)

Timeshare owners will also have to pay a maintenance fee every year, and if the unit is getting old, you may find it difficult to sell your shares.

Therefore, investors should consider carefully before investing, as timeshare also has different terms and conditions for each project.

For Cambodia, the market is relatively new. The very first timeshare project announced was in 2017, which was a US$30-million condo project in Sihanoukville. (Read more)

Recently, LAB Group has also announced its plans to introduce Timeshare NFTs in Cambodia within the next two years. (Read more)

 

• Business and Market
• Tourism and Travelling