Condo-Hotels for Short-Term Rentals: A Smart Alternative
When I first started hosting on Airbnb nearly a decade ago, building a direct booking site felt far off. Between platform policies, service fees, and constantly changing algorithms, the idea of owning the guest relationship sounded appealing, and also like a lot of work.
Fast forward to today, and I’ve explored a few different models, from standard listings to the beginnings of direct booking. There’s one option in particular that not enough hosts talk about, and it might be the sweet spot: owning a unit in a condo-hotel.
Whether you’re thinking about building a direct booking website or want something with a little more structure in place, here’s a breakdown of all three paths, including the pros, cons, and what’s working for me.
What Is a Direct Booking Website?
A direct booking site is your own standalone website where guests can find your short-term rental, book directly, and pay without going through Airbnb, VRBO, or another platform. You’re responsible for everything from calendars and communication to policies and payment.
Pros of Direct Booking:
- Lower fees: No host or guest service charges from OTAs.
- More control: Set your own policies and house rules.
- Stronger branding: Great for repeat guests and creating a recognizable identity.
Cons of Direct Booking:
- More responsibility: You’ll need your own rental contract, guest communication system, and payment processing.
- Less visibility: You won’t get automatic traffic like you do on Airbnb.
- More setup time: Building the website, managing SEO, syncing calendars – it’s a whole other time consuming project.
A Surprising Middle Option: The Condo-Hotel Model
If you’re not ready to go fully independent, a condo-hotel might be worth considering. This model gives you many of the benefits of direct bookings without all the heavy lifting.
What is a Condo-Hotel?
A condo-hotel (also known as a condotel) is a building that operates like a hotel but is made up of individually owned units. Owners can use their unit part-time and rent it out when they’re not there. These properties often come with professional management, cleaning, guest communication, and a direct booking website that markets the entire building.
Guests can book your unit directly through the building’s site or on platforms like Airbnb, Expedia, and Booking.com, all without you personally having to manage listings or messages.
Pros of Owning a Condo-Hotel Unit:
- Built-in systems: You’re not starting from scratch. Most have an on-site team for cleaning, guest check-in, maintenance, and even marketing.
- Platform and direct booking exposure: Your unit is listed on major OTAs and on a centralized booking site run by the building.
- Passive(ish) income: You can be a more hands-off owner compared to managing an STR independently.
Cons of the Condo-Hotel Model:
- Less control: You often can’t customize your listing or guest communication. Policies and decor standards may be set by the building.
- Revenue split: You’ll likely split earnings with the building’s management company, sometimes 30–50%.
- HOA-style rules and fees: These can include limitations on personal use, pet policies, and high monthly dues.
Oh, the Amenities!
One of the standout benefits of owning a unit in a condo-hotel is the ability to offer guests elevated amenities that are rarely found in single-family short-term rentals. Think resort-style perks like a pool, hot tub, fitness center, on-site restaurant or bar, and even concierge services — all included as part of the guest experience. These features can significantly boost your property’s appeal, especially to travelers who value convenience and comfort. Late-night check-ins, professional front-desk staff, and built-in security also create a seamless, hotel-like stay while you still maintain ownership of your unit. It’s a powerful way to stand out in a crowded market without having to manage all the moving parts on your own.
Condo-Hotels in Washington
If you’d like to explore direct booking sites with condo-hotels, here are two great properties I’ve stayed at personally, and both offered better rates when I booked directly through their websites.
Grandview on the Lake in Lake Chelan, WA offers individually owned condo-style units right on the waterfront, with access to resort-style amenities like a lakeside pool, hot tub, and on-site wine bar. Located in the heart of downtown Chelan, Grandview combines the flexibility of a vacation rental with the convenience of a hotel. Each suite is unique, since they’re individually decorated by owners, but all are professionally managed by the Grandview team. I’ve stayed here multiple times and always found the direct booking process through simple and smooth, and in fact, I got a better rate than I would have on Airbnb or other third-party platforms.
Suncadia Resort in Cle Elum, WA is another condo-hotel-style experience that blends natural beauty with full-service comfort. Units are privately owned but managed by the resort, offering guests access to stunning amenities like pools, golf courses, spa services, fine dining, and seasonal outdoor activities. Whether you’re looking for a cozy studio or a multi-bedroom suite, Suncadia’s accommodations are nestled into the landscape with sweeping mountain or river views. Not only are there condo-style options, this community offers luxury, multi-bedroom, stand-alone homes as well.
Like Grandview, I found booking directly through their site gave me the best price and access to exclusive offers. It’s a great example of how STR ownership within a managed property can offer both strong guest appeal and owner convenience.
So, Which Model Is Right for You?
| Option | Best For | Key Tradeoff |
|---|---|---|
| OTA-Only (Airbnb/VRBO) | New hosts or single-property owners | Convenience vs. platform control |
| Direct Booking Site | Experienced hosts scaling up or seeking independence | Freedom vs. complexity |
| Condo-Hotel Ownership | Investors who want exposure without daily management | Simplicity vs. reduced control |
My Take: Match Your Strategy to Your Season
If you’re just getting started or happy with your current setup, there’s no pressure to build a booking site. But if you’re starting to scale — or want more brand presence and repeat guests — direct booking is a smart long-term move.
On the flip side, I think condo-hotels are underrated. If you want to grow your STR business but don’t have time to manage more listings yourself, this model might let you “scale light.” Owning multiple condotel units across different markets could even be a creative path to a semi-passive STR portfolio. You can read more in this blog post: Should You Own a Short-Term Rental?
Final Thought
Whether you’re building a custom booking site, sticking with platforms, or considering a condo-hotel unit, the key is building a guest experience worth repeating.
In my own rentals, I’ve found that thoughtful design, reliable communication, and clean systems matter more than which platform guests book through.
And remember: direct bookings are great, but the best kind of direct booking? A happy guest who wants to come back.
Read more in my other blog post, Should You Create a Direct Booking Website for Your Short-Term Rental? Pros, Cons & What to Know.
– KP
