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Condohotels in Cabo San Lucas: What You Need to Know


Condohotels have become a popular investment option in Cabo San Lucas. These complexes combine the ownership of a private apartment with the services of a hotel, offering owners a number of advantages, such as rental income, access to high-quality amenities and services, and the ability to enjoy their vacations in a tourist destination.

In this article, we explain everything you need to know about condohotels in Cabo San Lucas, from what they are to the pros and cons of investing in one.

What is a condohotel?

A condohotel is a type of real estate property that combines the ownership of a private apartment with the services of a hotel. Condohotel owners own their unit, but they also have access to the hotel’s facilities and services, such as concierge, housekeeping, and food service.

Condohotels are commonly found in popular tourist destinations, such as Cabo San Lucas. This is because the demand for accommodation in these destinations is often high year-round, which can generate stable income for condohotel owners.

Advantages of investing in a condohotel

There are a number of advantages associated with investing in a condohotel in Cabo San Lucas. These include:

  • Rental income: One of the main advantages of investing in a condohotel is the potential for rental income. When you are not using your unit personally, you can put it into the hotel’s rental program and receive a percentage of the income generated by guest bookings.
  • Location in a tourist destination: Condohotels in Cabo San Lucas are located in a popular tourist destination, which can increase demand for rental and generate stable income.
  • Professional management: The property management and operation of the condohotel are handled by professionals in the hotel industry. This means you do not have to worry about day-to-day management, maintenance, marketing, and other operational aspects.
  • Ease of use: Unlike a traditional rental property, you do not have to worry about finding and managing tenants, as the condohotel management takes care of everything.
  • Personal use options: Depending on the condohotel’s rules and the management contract, you may have the option to use your unit personally during certain periods of the year.
  • Amenities and services: As a condohotel owner, you can access the hotel’s amenities and services, such as swimming pools, gyms, restaurants, and scheduled activities.
  • Potential appreciation: If the condohotel is located in an area with tourist growth and real estate development, the property could appreciate over time, which could result in an increase in the value of your investment.
  • Investment diversification: Investing in a condohotel can be a way to diversify your investment portfolio, as you would be exposed to the hotel industry and the real estate sector in a tourist destination.

Disadvantages of investing in a condohotel

While there are many advantages associated with investing in a condohotel, there are also some potential risks to be aware of. These include:

  • Maintenance costs: Condohotels typically have higher maintenance costs than traditional residential properties. This is because owners share responsibility for the maintenance of the complex’s common areas.
  • Taxes: Condohotel owners may be subject to additional taxes, such as property taxes and income taxes.
  • Rules and restrictions: Condohotel owners must comply with the complex’s rules and restrictions. These rules may limit their use of the unit and the amount of time they can rent it out.

Tips for investing in a condohotel

Investing in a condohotel can be an exciting opportunity, but it also requires careful research and planning. Here are some tips to keep in mind before investing in a condohotel:

  • Research the local market: Make sure you understand the demand for accommodation in the destination.
  • Investigate the developer and operator: Do your research to make sure the developer and operator have a good reputation.
  • Understand the costs: Understand all the costs associated with the investment, including maintenance fees, taxes, and any other fees.
  • Read the contract carefully: Read the contract carefully before signing it to understand your rights and responsibilities.


Condohotels can be a good investment for those who are looking for a way to generate rental income, enjoy the benefits of hotel services, and diversify their investment portfolio. However, it is important to do your research and understand the risks associated with investing in a condohotel before making a decision.

Here are some additional things to consider when investing in a condohotel in Cabo San Lucas:

  • Location: Cabo San Lucas is a popular tourist destination with a high demand for accommodation. However, it is important to choose a condohotel that is located in a desirable area with good access to amenities and attractions.
  • Price: Condohotels in Cabo San Lucas can range in price from a few hundred thousand dollars to several million dollars. It is important to set a budget and stick to it.
  • Financing: There are a number of financing options available for condohotel investments. It is important to compare rates and terms before choosing a lender.

If you are considering investing in a condo hotel in Cabo San Lucas, be sure to do your research and work with a qualified real estate professional to find the right property for you. At Baja Memories Real Estate we are here to help you.


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