How Does Hilton Whistler Ownership Work?
The Hilton Whistler is a pretty attractive option for buyers looking to get their first Whistler investment condo but ownership there can be confusing. Let's go over all the nuts and bolts of how Hilton Whistler ownership works.
1. Phase 1 Unrestricted
In the MLS you will usually see The Hilton listed as a Phase 1 unrestricted owner use property. The Phase 1 restrictive covenant in Whistler means that you as the owner can have unlimited use of your property and it's also zoned to allow you to rent it out nightly any way you wish.
However, if you stayed there a lot, lived in it even or rented it out on your own AirBNB style the hotel management wouldn't be able to operate it as a hotel very effectively, would they?
2. Works Like a Phase 2 Condo
So, in many ways it's really run like a Phase 2 condo hotel which limits the amount of days you can use your suite and it also does not allow you to do your own rentals. You must use the hotel management for rentals and sign a rental management agreement with them. Stick around to the end of the video for a full description of how proper Phase 2 condos work.
So, to make this limited owner use happen, the hotel charges owners 16% of the average room rate for that unit type on that given night. 10 of that 16% goes to The Hilton as a franchise or royalty fee and the other 6% stays with the unit in the unit's reserve fund. So, this 6% is still basically your money but goes towards any major renovations needed in the future.
Simply put, you're paying to stay in your own unit when you're in Whistler and because of that, you're less likely to stay frequently leaving the suite available for rent by The Hilton management more often. This gives you higher revenues because you're not occupying your unit too much.
On the topic of revenues, you do get your unit's share of the overall hotel rental revenue, minus any nights you stayed there, and minus the Hilton's 45% management fee and other related expenses. Hit me up in the comment section below if you have any detailed questions about how the revenue stream works.
One final note. Because it's a hotel suite you can't do any renovations to the unit or decorate on your own. You're bound by the hotel's decor and bound by any renovations that the strata council of owners votes to make down the road at The Hilton's request.