A condominium-hotel, or "condotel," is a hybrid real estate model that combines the characteristics of a condominium with those of a hotel. In this arrangement, individual investors can purchase hotel units, similar to acquiring a traditional condominium. However, these units are subsequently managed and operated by a professional hotel management company, such as Hotel101, as an integral part of a larger hotel property. Unit owners typically do not reside in their units but instead participate in a revenue-sharing program based on the overall hotel's performance. This model offers the benefits of real estate ownership without the day-to-day responsibilities of property management.

Hotel101's business model significantly distinguishes itself from both timeshares and traditional condominium rentals. Unlike timeshares, where ownership is limited to specific usage periods, Hotel101 unit owners possess full, titled ownership of their unit. In contrast to traditional condominium rentals, where owners are responsible for tenant acquisition, booking management, maintenance, and operating costs, Hotel101 assumes all these responsibilities. The owner participates in a revenue-sharing scheme derived from the entire hotel's performance, ensuring a more passive and hassle-free investment.

Unit owners in Hotel101 Madrid generate earnings through a revenue-sharing model. While the precise percentage is not specified in the available information, the model implies that owners receive a share of the hotel's gross room revenue, irrespective of whether their specific unit was occupied. This collective earning approach provides a stable income stream, as it mitigates the risk of individual unit vacancy. The "Tested and Proven Business Model", with a track record of over 2,000 rooms sold and more than 6,000 keys in the pipeline, suggests a history of successful revenue generation.

Hotel101 promotes its investment as "Self-Liquidating," which implies that unit owners are exempt from the typical burdens and costs associated with property ownership. This model explicitly states the absence of:

• Operating Costs: Day-to-day operational expenses are covered by the hotel management.

• Management Responsibilities: Owners are not involved in the hotel's daily management.

• Maintenance Fees: All maintenance and upkeep costs are handled by the hotel.

• Renovation Costs: Future renovations or upgrades are not the financial responsibility of individual unit owners.

• Parking Slot Purchases: Parking is managed by the hotel.

• Monthly Dues: Owners do not incur recurring monthly charges.

This comprehensive elimination of owner liabilities makes the investment truly passive and appealing to those seeking hassle-free returns. The elimination of these recurring costs and responsibilities directly translates to a truly passive income stream for the investor. This model significantly reduces the typical risks and burdens associated with real estate investment, making it highly appealing to a wider range of investors, particularly those seeking hands-off, stable returns without the complexities of property management. This simplified ownership model can attract international investors who might be hesitant due to unfamiliarity with local regulations or management challenges.

Hotel101 Madrid offers flexible payment terms designed to accommodate various investor preferences. These options are structured to enhance investment accessibility:

• Option 1

  • 100% spot cash within 30 days.

• Option 2

  • 99% equal payment spread over 24 months, with 1% retention at completion.

• Option 3

  • 25% down payment, 25% spread over 24 months, and a 49% lump sum payment on the 25th month, with 1% retention at completion.

• Option 4

  • 50% down payment and a 49% lump sum payment on the 25th month, with 1% retention at completion.