A condo is a residence you own and use under its declaration and HOA rules. A condo hotel (or condotel) is a unit in a building run as a hotel, often with a rental program, hotel services and limits on when you can use the unit. The difference shows up in how you can use the unit, whether a rental pool or hotel management is required, and how lenders and securities rules treat the building.
Updated October 11, 2026
A condo is a residence you own and use under its declaration and HOA rules. A condo hotel (or condotel) is a unit in a building run as a hotel, often with a rental program, hotel services and limits on when you can use the unit. The difference shows up in how you can use the unit, whether a rental pool or hotel management is required, and how lenders and securities rules treat the building.
Condominium: A condo owner holds title to the unit and can live in it, rent it or sell it within the condominium's declaration and the association's rules, including any rental restrictions. The association manages the common areas and amenities; it doesn't run the building as a hotel. Financing depends on the building and the lender.
Condo hotel (condotel): A condo hotel unit is also individually owned, but the building is run as a hotel. Units may be placed in a rental program run by a hotel operator, the building may provide hotel services to owners and hotel guests, and owners may be limited in when they can use their own unit. Terms vary by project, so read the documents. "Condo hotel" is a market term: the definitions section of Florida's Condominium Act (Fla. Stat. § 718.103) doesn't define "condo hotel" or "condotel."
At a glance
- Use: a condo owner uses the unit within the declaration and HOA rules; a condo hotel's documents may limit owner use, for example with blackout dates or occupancy limits
- Rentals: a condo owner can rent within the HOA's rental rules; a condo hotel unit is often rented through a rental program or rental pool run by the operator
- Management: a condo is run by its association; a condo hotel's hotel operation is run by a hotel operator
- Services: they vary by condo building; a condo hotel may offer hotel services such as a front desk and housekeeping
- Financing: it depends on the building and lender for a condo; Fannie Mae won't buy loans on units in projects run as hotels (see below), so ask lenders early about a condo hotel
- Resale: for a condo hotel, ask how financing limits and the rental terms could affect future buyers
Financing: Fannie Mae's Selling Guide (B4-2.1-03, Ineligible Projects) says Fannie Mae won't purchase or securitize loans secured by units in projects "managed and operated as a hotel or motel, even though the units are individually owned." Its signs of hotel operation include an HOA licensed as a hotel, project documents that restrict owners' ability to occupy the unit during any part of the year, required rental pooling, required sharing of rental profits, and hotel-type services such as registration, daily cleaning and central key systems. That limits conventional (Fannie Mae) financing for many condo hotels. Other lenders and loan programs set their own rules, so ask lenders about the specific building before you sign.
Securities and rental pools: In Release No. 33-5347 (1973), the SEC said that offering condominium units together with participation in a rental pool, or with a rental arrangement under which the buyer must hold the unit available for rental for any part of the year, must use an exclusive rental agent or is otherwise materially restricted in occupying or renting the unit, will cause the offering to be viewed as an offering of securities (investment contracts). The same applies when units with a rental arrangement are sold with emphasis on the economic benefits from the promoter's management efforts. It's a 1973 interpretive release, and whether a particular offering is a securities offering is a question for a securities or real estate attorney.
Service differences: A condo hotel may offer hotel-style services, such as a front desk, housekeeping and room service, because the building also serves hotel guests. Some branded residences offer similar services without operating as a hotel; for one example, see Is Cipriani Residences a Hotel or a Residence?.
Questions to ask before buying
- Is there a rental pool or rental program, and is it mandatory or optional?
- Are there blackout dates, day caps or other limits on when I can use the unit?
- Who manages the hotel operation, and who holds the licenses?
- How are rental revenues and expenses split, and what fees come out first?
- What do lenders say about financing a unit in this building?
- How does resale work, and do the rental terms pass to the next owner?
Talk to an agent. Ask a Haute Real Estate Network agent about the buildings you're considering: Reggie Bouzy, founder and CEO of Le Comble, Inc., an advisory platform his profile says is focused on branded residences and "condotel" properties, and founder and CEO of The Bouzy Group; or Maria Kuzina, Broker/Owner of Miami Luxury Real Estate in Miami Beach, who sells luxury condos and homes across Miami. You can also find a realtor. For related questions, see What Is the Difference Between a Condo and a Branded Residence? and What Is a Hotel-Branded Condo Rental Program?.
Sources
- Fannie Mae Selling Guide B4-2.1-03, Ineligible Projects (Projects that Operate as Hotels or Motels)
- SEC Release No. 33-5347 (1973), Guidelines as to the Applicability of the Federal Securities Laws to Offers and Sales of Condominiums or Units in a Real Estate Development
- Fla. Stat. § 718.103, Definitions (2026 Florida Statutes)
This is general information, not legal or financial advice. Ask a real estate or securities attorney and your lender about a specific project.
Frequently Asked Questions
What is a condo hotel?
A building where units are individually owned but the property is run as a hotel, often with a rental program, hotel services and limits on when owners can use their units. Terms vary by project.
What does "condotel" mean?
It's another name for a condo hotel, a blend of "condominium" and "hotel." It's a market term; the definitions in Florida's Condominium Act (Fla. Stat. § 718.103) don't define it.
Can I live in a condo hotel unit full-time?
It depends on the project's documents. Some condo hotels limit owner use, for example with blackout dates or occupancy limits tied to the rental program. Read the declaration and any rental agreement, and ask before you sign.
Is a condo hotel harder to finance?
It can be. Fannie Mae won't buy loans secured by units in projects managed and operated as hotels (Selling Guide B4-2.1-03). Other lenders set their own rules, so ask lenders about the specific building early.
Do condo hotels have to use a rental pool?
Not necessarily. Some projects require owners to make units available for a rental pool; in others it's voluntary. If there is one, ask how revenue is split, who sets rates, what fees apply and whether you can leave it.
Is a condo hotel a security?
It can be. In Release 33-5347 (1973), the SEC said condominium units offered with a rental pool, a required rental arrangement, an exclusive rental agent or material occupancy restrictions are viewed as securities offerings. Whether a specific offering is one is a question for a securities or real estate attorney.
Is a branded residence a condo hotel?
Not necessarily. A branded residence can be a residential condominium with no hotel guests. See What Is the Difference Between a Condo and a Branded Residence? and, for one building, Is Cipriani Residences a Hotel or a Residence?.