The word “condotel” is heard in every second presentation in Phuket, but it is rarely explained. Some sellers call it “an apartment with income”, others “a share in a hotel”, and both phrasings are imprecise. Legally you buy a condominium; economically you take part in a hotel business run by a professional operator. How well you understand the border between those two worlds determines both your income and your risks. Below we explain how a condotel works using Layan Green Park as a live example: what exactly you get, what you pay for, what you risk, and when this format is not for you.
Contents
1. What a condotel is
The word combines condominium and hotel. It is a building with two layers.
- The real-estate layer. Each unit is a separate object with its own owner and its own title document. The unit can be sold, gifted or inherited — with the caveats imposed by the contract with the operator.
- The business layer. The building operates as a hotel: reception, cleaning, bookings, restaurant, spa, marketing. All of this is handled by a management company, not by owners individually.
Between the layers sits a contract: the owner hands the unit to a rental pool, and the operator turns dozens or hundreds of identical units into one hotel product. A guest books a room, not “John’s apartment”. The income of all units is added up, operating costs are deducted, and the remaining net profit is split between owners and the operator. We covered the general mechanics of management programmes in the Phuket rental management programme; here we focus on what is specific to a condotel.
The main difference from “buy and let it myself”: you give up control in exchange for ready-made infrastructure. It is a conscious trade-off, and the format is only as good as your acceptance of its terms.
2. How Layan Green Park is built
Layan Green Park is Phuket’s first eco condo-hotel with the international EDGE certificate, two minutes from Layan beach. The VillaCarte Group project has two phases, and both are examples of a condotel.
| Parameter | Phase 1 | Phase 2 |
|---|---|---|
| Units | 248 | 296 (6 buildings) |
| Status | operating since 2024 | handover in 2026 |
| Who sells | resales from owners only | the developer |
| Entry price | studios from $142,602 (30 m²) | studios from $224,043 (36.7 m²) |
| Payment | full payment | schedule revised as sales progress |
The infrastructure that makes the complex a “hotel”: four freshwater pools with a waterfall, a club restaurant and bakery, three lounge bars, a 253 m² gym, a sauna, spa and beauty salon of 306 m², a 171 m² kids’ club, concierge and reception 24/7, a free shuttle to the beach and Boat Avenue, security and CCTV. All of it is paid for from common charges and operating income, not from your pocket “on request”.
The practical conclusion: in a condotel you buy not square metres but a place in a working system. That is why Phase 1 matters so much in Layan Green Park — it already hosts guests, and the rental model is proven by real occupancy, not renders. More about the project is in the Layan Green Park 2026 review and on the project page; how Phase 1 sold out before handover is in the sold-out Phase 1 case.
3. What you buy legally
Legally you buy a unit in a condominium. This is the key point: not a share in a company and not “hotel units of participation”, but a real-estate object registered at the Land Department (dol.go.th). A foreigner can hold a unit freehold within the building’s foreign quota, or leasehold. How to choose between the two forms is covered in freehold vs leasehold in Thailand.
What to check before signing:
- Title and quota. Whether the building has free foreign quota if you want freehold, and in whose name the unit currently stands (for a resale).
- No encumbrances. The unit is not mortgaged and there are no arrears on common charges to the building’s juristic entity.
- The contract with the operator. Term, pool exit procedure, what happens when the unit is sold, who is responsible for furniture and repairs.
- Transferability of the contract. Whether participation in the pool passes to the new buyer on resale — your asset’s liquidity depends on it.
A separate remark for Phase 1 resales: the deal is with a private owner, not the developer, so the check is cleaner and more detailed — the steps are in the due diligence guide for Phuket. This material is for information only and is not legal advice: the contract and title should be checked by an independent lawyer before purchase.
4. Where income comes from: the 60/40 pool
The income model in Layan Green Park and Layan Verde is the same: 60% of the pool’s net profit goes to the owner, 40% to the management company. The programme target is about 8–10% net per year with a payback of roughly 12 years. It is a target, not a guarantee, and we always call it that.
The calculation step by step:
- Guests pay for accommodation, the restaurant, the spa and services.
- Operating costs are deducted from revenue: staff, utilities, booking-platform commissions, cleaning, marketing.
- What remains is the pool’s net profit.
- It is split: 60% to owners in proportion to their units, 40% to the management company.
In numbers. Take a Phase 1 studio at the 21.07.2026 price list — $142,602. The 8–10% net target gives $11,408–$14,260 per year. Dividing by the price shows where the payback of about 12 years comes from: the closer the yield to 8%, the closer the term to 12 years. Note that the yield must be measured against the purchase price, not against a “discounted price”: for a resale the price is the deal price, including everything you paid the seller.
| Income model | Who carries the occupancy risk | Pro | Con |
|---|---|---|---|
| Rental pool (60/40) | All owners together | Income is averaged across units | Income floats with the seasons |
| Guaranteed yield | The seller, on paper | A clear number | The unit price usually already contains it |
| Self-managed letting | You personally | Full control | Time, agent and licence needed |
Why a “guaranteed 10%” is more often marketing than a contract is covered in guaranteed rental yield in Phuket, and demand seasonality in rental seasons and occupancy. The method for your own numbers is in how to calculate ROI in Phuket; you can also run a quick scenario in the calculator on the home page.
5. Owner costs
The pool’s net profit is income after the hotel’s costs. The unit owner’s costs are a separate line, and you need to include them when judging the real return.
| Item | Layan Green Park | How it is calculated |
|---|---|---|
| CAM fee | 75 THB/m² per month | common-area upkeep, always payable |
| Sinking fund | 650 THB/m² one-off | major-repair fund at purchase |
| Electricity and water | state tariff | EDGE gives up to 40% savings |
| Tax on rent | by law | depends on your residency status |
Take a 30 m² studio: the CAM fee is 2,250 THB per month (27,000 THB a year), and the sinking fund is 19,500 THB one-off. For a unit priced at 4,800,000 THB these are modest sums, but they accumulate and must be deducted before you call the yield “net”. How these charges work and why they grow with floor area is covered in sinking fund and CAM fees.
Tax on rental income is a separate topic depending on your residency and status. The general picture is described by the Revenue Department (rd.go.th), and the nuances for foreign owners are in rental income tax in Thailand. We do not give tax opinions: for your situation you need a tax adviser.
6. Hotel licence and legality of letting
Short-term letting in Thailand is a regulated activity: a building where rooms are let to guests for short periods must hold a hotel licence. For a condotel this is not a formality but the foundation of the whole business model. That is why we give it a section of its own.
The Phuket situation in 2026 is telling. By 12 August the Ministry of Interior had approved 275 of 392 hotel-licence applications accumulated since 2018, and on 26 September the deputy governor of the province announced the suspension of five hotels without a licence after a 30-day deadline for correction expired; about 40 more hotels remain under review with a deadline in October (per Bangkok Post). A detailed review of that week is in the market digest, week 40.
It does not follow that condotels are unsafe. The sanctions concern specific buildings that did not apply or did not fix violations. A working, licensed project with a registered management company is a different category, and Phase 1 of Layan Green Park has let units through a rental pool since 2024. But the lesson for a buyer is simple: a building’s legal status is the first item of the check, not the last.
What to ask the seller or operator for:
- a copy of the building’s current hotel licence and details of the licence holder;
- confirmation that the management company is registered and entitled to operate;
- a sample pool participation agreement and the latest pool reporting;
- written confirmation of how the unit is accounted for under the licence.
7. Personal stays and complex rules
A condotel is first of all an investment. If you want to live in the unit all year round, the format will most likely not suit you: the unit works in a hotel model, and a room permanently occupied by its owner drops out of the pool.
Layan Green Park programme terms:
- 30 days of personal stay per year, in the period May to October — that is, in the low season, when the unit earns less anyway;
- pets are not allowed;
- the unit is furnished and equipped to the operator’s standard, not to your taste;
- a free shuttle to Layan beach and Boat Avenue; the restaurant and spa are open to you as to a hotel guest.
The logic of the limits is simple: the more often the owner occupies the unit, the less it contributes to the common pool, and the pool is shared by everyone. That is why stay windows are tied to the low season. For those who need a life in Thailand rather than income, it is wiser to look at a condo or a villa and possibly a separate strategy for a visa for property owners.
8. Condotel, ordinary condo and villa compared
To understand what you are choosing, it helps to put the three formats side by side.
| Criterion | Condotel | Ordinary condo | Villa |
|---|---|---|---|
| Management | Operator, pool | You or an agent | You or a villa manager |
| Short-term letting | Built into the project | Often banned | Possible if rules are met |
| Personal stay | Limited to windows | No limits | No limits |
| Entry ticket | Lower (studios) | Lower or comparable | Higher |
| Control over the unit | Low | High | High |
| Owner’s hassle | Minimal | Medium | High |
A condotel wins where you do not live in Phuket and want a passive format. It loses where you want to dispose of the property yourself. A comparison of yield and hassle for studios and apartments is in studio or apartment in Phuket, and for villas in villa rental yield.
Layan Verde from the same developer also works on the pool model: entry from $235,995, handover in December 2028, hotel operator Dusit International for the premium buildings, and a 35% or 50% instalment plan during construction. It is the same condotel principle with a different profile: capital growth during construction plus a rental pool after handover. The two projects are compared in Layan Verde vs Layan Green Park.
9. Pitfalls: what can go wrong
Typical buyer mistakes with condotels and how to avoid them.
- Confusing “income” with “pool net profit”. When a seller says “10% yield”, ask: before or after costs, and on what price. The programme target is 8–10% net after the pool’s operating costs, but before your personal costs and taxes.
- Forgetting the owner’s charges. The CAM fee and sinking fund reduce the final return. Put them in the cost table before signing.
- Taking a target for a guarantee. 8–10% is the programme’s goal. Occupancy depends on the season and overall tourist flow.
- Not checking the licence. See section 6: the building’s status matters more than a nice presentation.
- Not reading the pool exit. How and when you can leave, what happens on sale, whether the contract passes to the buyer.
- Expecting to live “as in your own flat”. Pets are banned and personal stay is limited to 30 days in May–October.
- Buying a resale with an instalment plan in mind. A Phase 1 resale always means full payment; instalments exist only from the developer on units under construction.
- Treating price growth as a given. Phase 1’s ~100% growth is the story of one project, not a guarantee for Phase 2.
If you doubt who in the chain is responsible for a line of the contract, stop and ask for a written explanation. A general list of red flags is in developer red flags, and typical investor misconceptions in investor mistakes in Phuket.
10. Mini-case and conclusion
Mini-case (an illustration on catalogue numbers, not a real client story). An investor lives outside Thailand, wants a passive asset and is ready to visit once a year. They consider a Phase 1 Layan Green Park studio at the 21.07.2026 price list — $142,602, resale, full payment.
- The programme target is 8–10% net per year, i.e. $11,408–$14,260 a year before taxes and personal costs.
- Out of their own pocket they pay a monthly CAM fee: for 30 m², 2,250 THB, plus a one-off sinking fund of 19,500 THB.
- Once a year they use up to 30 days of personal stay in May–October.
- Before buying they request the building’s licence, the pool contract and pool reporting, and check the title through an independent lawyer.
Result: the format suits them because they need a ready operator and a low entry ticket. If they needed to live in the unit all year, a condo or a villa would be wiser. If they were after capital growth during construction, the under-construction Layan Verde with instalments would fit. The decision is set by the goal, not the product.
Conclusion. A condotel is a condo with a hotel layer. You get your own unit, a ready operator and a share of the pool’s net profit (60/40), and in return you give up control, accept the complex’s rules and pay owner charges. The key questions before buying: the building’s licence, the pool contract, your costs and the exit. The rest is arithmetic. We work as an agency that selects to the client’s brief, not to our own building sites, and can show the documents for both projects: Layan Green Park and Layan Verde. For districts see Layan and Bang Tao, and for our approach the agency page.
Next step. Leave a request — we will send the current price list, the current pool terms and a list of documents to check. Terms of cooperation with the agency: market commission, terms discussed at a meeting.
