The Orlando Sentinel reports on when an investment isn't an investment. "After years bemoaning a lack of decent business-class hotels, Central Florida's travel industry may finally get what it wants. But what makes this wave so unique are the hotels' owners. These new projects would have hundreds of them, most with only a vague understanding of the hospitality industry."

"Meet the condominium hotel. Developers plan to sell rooms and suites as condos, marketing them as vacation homes that generate a cash flow. Central Florida isn't alone. Las Vegas, Chicago, Miami Beach and Palm Springs, Calif., are germinating condo-hotel projects of their own. 'Construction costs have gone up so much that they have forced some developers out of the market,' said Mark Lunt, a lodging-industry expert with Ernst & Young in Miami."

"In many cases, condo-hotel developers move on after their projects are built and sold out."

"Lodging-industry experts say a lot needs to be learned about condo hotels, including what will happen to owners' units if the hotel doesn't prove financially successful. Like any hotel project, condo hotels should be built to meet a need, (consultant) Pat Ford said. He advised buyers to consider how well the hotel is likely to perform once it is built."

"'There has to be a reason for the hotel to be built,' he said. 'There has to be sufficient demand from the market, and there has to be a desire on the part of the consumer to use the hotel for repeat vacations.'"

"'I would call this a unique opportunity for people who want to use the property for 60 or 90 days a year,' said Camilo Aguirre, a principal in CMA Development Group of Miami Beach, which announced plans for The Blue Rose, a 1,300-room condo hotel. 'We're finding all kinds of people who want a vacation home.'"

"Developers avoid depicting the hotel units as investments, saying that federal securities regulators restrict such pitches. Instead, they call them vacation residences. 'They can't be sold as investments,' said Ford. 'If you are looking to invest money and receive a normal rate of return, you would be better off putting your money elsewhere.'"

"Most hotel developers don't expect owners to occupy their properties for long stretches. But there are exceptions. Victor Barrios of Clermont says he is interested in buying a condo-hotel suite as a residence. 'My wife and I would want to live in the hotel,' he said. 'It has a certain appeal, though I guess after three or four years you might get tired of hotel living.'"

"Barrios said he thinks a hotel suite would be a good investment if he finds one offered at a reduced pre-construction price. 'Mostly it's an investment opportunity,' he said. 'If you can get in at a good price, you can make a hefty little profit after it is built.'"