Condotels were an investment craze during 2015–2019, attracting billions of USD with promises of 8–12% annual returns. Reality has proven far more complex.
What is a Condotel?
A condotel (Condominium + Hotel) combines residential apartments with hotel management. Owners purchase units and authorize a management company to operate them for rental income sharing.
Legal Risks
To date, condotels still lack a complete legal framework in Vietnam. Many projects issued land certificates incorrectly, leading to prolonged disputes. The 2024 Land Law introduces more specific provisions but ambiguities remain.
Real-World Performance
Independent research shows only 30–40% of condotel projects actually paid out promised returns. Many developers halted payments after 2020 due to COVID-19 and operational difficulties.
When Should You Invest in a Condotel?
If considering investment, choose: (1) Reputable developers with a good payment track record, (2) High-demand tourism locations (Phu Quoc, Da Nang, Nha Trang), (3) Don't depend on promised returns — view it as a resort property for personal use plus rental income.
