When you’re exploring property ownership in places like Park City, you’ll often come across two options: traditional condos and condotels. While both have their merits, condotels bring something extra to the table: flexibility, rental income potential, and a vacation-ready lifestyle.
Here’s a closer look at the differences and why a condotel, paired with the right financing, could be the smarter move.
What’s the Difference Between a Condo and a Condotel?
- Traditional condos are built for long-term living. You can own, live in, or rent them out, but most financing programs depend on the building meeting strict requirements.
- Condotels combine the best of both worlds: private ownership with the amenities and management of a hotel. That means front desk services, housekeeping, and, most importantly, the ability to generate income through short-term rentals when you’re not using it.
Why Condotels Stand Out for Investors
- Income Potential
With nightly rental rates often higher than long-term leases, condotels in prime vacation markets can generate impressive income. Ski season in Park City or summer tourism hotspots create high-demand windows that traditional condos just can’t match. - Hassle-Free Management
Because condotels are run like hotels, owners don’t have to worry about cleaning, check-ins, or marketing. The property’s management team handles it all. - Lifestyle Benefits
When you’re not renting your unit, you enjoy full access to resort-style amenities, concierge services, pools, gyms, and more. It’s both an investment and a vacation home.
The Financing Challenge (and Solution)
Here’s the honest part: condotels are usually considered non-warrantable, which means many traditional lenders won’t finance them. That’s where working with a condotel financing expert makes all the difference.
Loan options for condotels include:
- Portfolio and non-QM loans (kept in-house by lenders, more flexible).
- DSCR loans, where projected rental income can help you qualify.
- Jumbo loan options for higher-value properties.
Yes, condotel loans often require larger down payments and reserves, but the trade-off is worth it if your unit generates strong income.
How Condos Compare
Traditional condos have their place, but they come with limits:
- Financing is easier if the building is warrantable, but that excludes many vacation-focused projects.
- Rental income potential is generally lower and depends on long-term tenants.
- HOAs may restrict or prohibit short-term rentals altogether.
For buyers focused on lifestyle + investment, condotels open more doors.
Why Condotels Can Be the Smarter Move
If you’re looking for:
- Higher rental income,
- A property that doubles as your vacation spot, and
- A turnkey management system
Then a condotel is tough to beat.
Yes, the financing is different, but that’s exactly why I specialize in it. With over 17 years in lending, I know how to position condotel buyers for approval, find the right lenders, and secure terms that make sense for your financial goals.
Conclusion
When you stack condotels against traditional condos, condotels often come out ahead for investors and second-home buyers. The key is understanding how financing works and having the right guide by your side.
If you’re ready to explore condotel ownership in Park City or beyond, let’s chat. I’ll help you review the numbers, walk you through your loan options, and make sure your condotel purchase is both smooth and financially sound.