Baby boomers interested in buying vacation homes are now considering one of the latest trends in second home ownership: the condo hotel.

Condos are a type of vacation home. They are typically located at resorts operated by some of the major luxury hotel chains, such as Marriott, Ritz-Carlton, Hilton, and Trump International, to name a few.

These upscale second homes made their debut in Miami, but the condo trend has now spread across the country to markets like Orlando, Las Vegas, Chicago, and various cities in California, Colorado, and New York. They are also quite popular in exotic places like Mexico, Panama, the Caribbean, and Dubai.

Hotel condominiums are perfect for the lifestyle enjoyed by baby boomers, providing luxurious and hassle-free second homes without all the maintenance worries. They offer baby boomers the opportunity for easy and relaxed family vacations in attractive locations without wasting time researching, planning, and booking travel accommodations.

Unlike traditional vacation homes, condo hotels are furnished condominium suites located within some of the country’s most famous hotels and resorts. Owners of these suites are entitled to use all the luxury amenities and services offered by the property, such as fine-dining restaurants, gyms, spas, and concierge services.

In addition, the headaches of maintenance, guest services, and housekeeping are taken on by the hotel’s on-site management company.

But what really sets hotels apart from condos is that individual owners can put their unit into the hotel’s rental program when they’re not there. The hotel management assumes the responsibility of finding and dealing directly with the tenants, freeing the owners of these duties. The rental income generated by the condo hotel unit helps offset the costs of ownership.

Many baby boomers looking for investment alternatives see condominiums as a smart option, a means to diversify into more than just holdings in the stock market. Due to the limited supply of land in many select locations, the likelihood of capital appreciation in hotel condominium units is increased.

Condo hotel units come in a variety of sizes and prices, typically ranging from $300,000 to over $1 million for prime properties.

Unlike a timeshare, which typically provides only a week or two per year of use, condo owners are fully deeded property owners who can generally use their condo suites when and how they want. Baby boomers want vacation homes that are available when their busy schedules allow them free time.

Also, while traditional timeshares can be difficult to resell, condominium hotels, with their luxury amenities, prime locations, limited inventory, and appreciation potential, are more easily resellable.

For all these reasons, the condo hotel product, and the lifestyle it offers, appeals to the baby boomer generation. Look for more condos on the market in the coming years to meet this growing demand.