Land Use & ZoningIntermediateArizona Exam

Arizona's 'condominium hotel' (condo-tel) development model involves:

ATraditional full-service hotel operations exclusively, with the entire property owned by a single institutional entity and no individual unit ownership or condominium structure
BIndividual unit owners who own their units but participate in a rental pool operated by the hotel managementCorrect
CEntire hotel properties owned and operated exclusively by publicly traded real estate investment trusts, which are prohibited from offering fractional unit sales to individuals
DShort-term vacation rentals permitted only in resort overlay zones established by the municipality and subject to Arizona's STR registration requirements

Why Individual unit owners who own their units but participate in a rental pool operated by the hotel management Is Correct

Answer B: Individual unit owners who own their units but participate in a rental pool operated by the hotel management

Condo-tels allow individual buyers to own specific hotel units and participate in a hotel rental program when not using the unit personally. The hotel operator manages rentals and distributes net income to unit owners.

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