Trying to decide between a condo-hotel unit on or near the Strip and a standard Las Vegas condo? You’re not alone. Both offer lifestyle benefits, and one may also promise income potential, but the rules, financing, and resale dynamics are very different. In this guide, you’ll learn the key differences so you can align your purchase with your goals and risk tolerance. Let’s dive in.
What each product really is
A standard condominium gives you ownership of a unit in a residential building with an HOA that manages common areas and rules. You control occupancy and long-term leasing within HOA and local regulations. This is the familiar residential model most buyers know.
A condo-hotel, often called a condotel, is a condo unit inside an operating hotel or resort. Units typically look and function like hotel rooms and can be placed in the hotel’s rental program. You own a condo interest but also operate under hotel agreements that govern rentals, fees, and owner use.
Practical differences you’ll notice
- Furnishings and services: Condo-hotel units are usually sold furnished and include access to hotel services like housekeeping and concierge. Standard condos may not include these services.
- Use flexibility: Condo-hotels commonly limit how many days you can occupy the unit each year or require participation in the rental program. Standard condos generally offer broader control, subject to HOA and local rules.
- Income model: Condo-hotels are marketed as income-producing through nightly rentals. Standard condos rely on owner occupancy or longer leases.
- Governing documents: Both have HOA documents, but condo-hotels also include operator agreements and rental pool rules that significantly affect your rights and fees.
Rules and regulations in Las Vegas
HOA governance and Nevada law
Condominiums in Nevada are governed by NRS Chapter 116. The declaration, bylaws, and CC&Rs outline assessments, use restrictions, leasing rules, and how the HOA operates. In condo-hotels, the hotel operator rules are often attached to or referenced by the declaration, so you should review the full package of documents before you commit.
Hotel vs residential licensing
Condo-hotels operate within licensed hotel properties. If you enroll in the hotel rental program, the operator typically handles short-term rentals through the hotel system. Standard condos used for short-term rentals must follow Clark County or City of Las Vegas rules, which can include business licenses, registrations, and compliance with building and zoning requirements.
Taxes and required remittances
Nightly rentals in Las Vegas typically trigger transient occupancy taxes and other assessments. In condo-hotels, the operator usually collects and remits these taxes before paying owners their share. Property taxes are assessed by Clark County as usual; confirm how any rental income is classified and reported for your situation.
Disclosures and protections
Nevada requires disclosures on resale condos and HOA financial information. In condo-hotels, review hotel operator agreements for transfer fees, right of first refusal, restrictions on marketing and resale, and any resort or special assessments that may be charged.
Financing and insurance differences
Warrantability and loan options
Many condo-hotels are considered non-warrantable by lenders because of hotel operations and high investor or short-term rental use. That can limit access to conventional financing and may require higher down payments, often in the 20 to 30 percent range or more, with portfolio or specialty lenders. FHA and VA loans generally do not permit typical condo-hotel projects unless specifically approved.
Title and transfer constraints
Condo-hotel projects often include right of first refusal provisions, transfer or registration fees, and limits on leasing or marketing. Title companies need to clear any operator liens or assessments before closing. Some buildings may require enrollment in the rental program as a condition of ownership or transfer.
Insurance considerations
Resort or building insurance is usually arranged by the association or operator and funded through HOA assessments. You may need additional liability or homeowner coverage for your unit, especially when it is rented nightly. Clarify how operator insurance allocates responsibility for guest incidents and property damage.
Management, use rules, and cash flow
How rentals are managed
- Operator-managed rental pool: Most condo-hotels enroll units into a hotel-run rental program. The operator handles bookings, housekeeping, and marketing, and then pays owners net revenue after fees and taxes.
- Owner-controlled rentals: Less common in condo-hotels due to operator rules. If permitted, you may face restrictions on marketing channels or minimum standards.
- Hybrid models: Some projects mix owner-use blocks with rental pool participation for the rest of the year.
What the operator agreement covers
Operator agreements specify revenue splits, management and housekeeping fees, maintenance charges, and any marketing or administrative fees. They also set owner-use limits, blackout dates, and reservation priorities. In some cases, the operator reserves room blocks for packages or corporate bookings that may impact your unit’s availability.
Cash flow mechanics and reporting
Expect monthly or quarterly statements that show gross bookings, taxes collected, fees, and net payouts. Review how timely and transparent the reporting is and whether owners have audit rights. Remember that HOA dues and reserves are separate from operator fees and may be higher than typical residential condos due to hotel-level services.
Day-to-day experience
Hotel amenities like housekeeping, front desk, valet, and food and beverage are attractive, but higher guest turnover can increase wear and replacement costs. Branded properties may require periodic owner-funded upgrades to meet brand standards. Confirm what is included versus billed separately.
Market and resale in Las Vegas
Demand drivers you should track
Las Vegas condo-hotel performance is tied to tourism, conventions, entertainment, and gaming. Hotel occupancy and average daily rates influence rental income potential. Standard condos are influenced more by neighborhood trends, owner-occupant demand, and long-term rental markets.
Pricing and liquidity
Condo-hotels often price based on hotel metrics like occupancy and RevPAR, and buyers evaluate returns on a net basis after fees and taxes. Standard condos are more commonly valued by recent comparable sales and price per square foot. Historically, condo-hotels have had narrower buyer pools and lower resale liquidity than standard condos.
Resale constraints to expect
Resales can trigger right of first refusal, transfer fees, or mandatory rental pool participation. Buyer vetting can take longer due to financing limitations and operator approvals. Obtain historical income data for the unit and similar units to support valuation and set expectations.
Due diligence checklist
- Governing documents: Declaration, CC&Rs, bylaws, HOA budgets, reserve studies, meeting minutes, and special assessment history.
- Operator agreements: Rental pool terms, owner-use limits, fee schedules, reservation and marketing rules, and any restrictions on independent listings.
- Financial performance: 12 to 36 months of unit statements and comparable units showing revenue, occupancy, average daily rate, and fees.
- Taxes and licensing: How transient occupancy taxes are collected and remitted, and whether taxes are withheld before owner distributions.
- Financing: Project warrantability, likely down payment, interest rate range, and eligibility for conventional or government-backed loans.
- Insurance and liability: Building policies, required owner coverage, and liability allocation for guest incidents.
- Resale conditions: Transfer fees, right of first refusal, any required operator approvals, and cooling-off or waiting periods.
- Physical condition: Unit inspection, furniture and fixture replacement schedules, and responsibility for repairs or brand-mandated upgrades.
- HOA health: Reserves, delinquency rates, special assessments, and upcoming capital projects that could affect costs or operations.
Which option fits your goals
Choose a condo-hotel if you want hotel amenities, plan to use the unit part-time, and are comfortable with operator rules, variable income, and specialized financing. Your analysis should focus on net income after all fees and taxes, not headline room rates.
Choose a standard condo if you prioritize control, predictability, and broader financing options. This path typically offers a wider resale market and valuation based on comparable sales rather than hotel performance.
Next steps with a local advisor
If you are weighing a Las Vegas condo-hotel against a standard condo, a disciplined, document-first review will save time and improve your outcome. You deserve clear answers on income potential, costs, and exit options before you write an offer. For a structured evaluation and on-the-ground insight into specific buildings and HOAs, connect with Belen Clark for a Personalized Market Consultation.
FAQs
What is the main difference between a Las Vegas condo-hotel and a condo?
- A condo-hotel is a condo inside a hotel with rental pool and operator rules, while a standard condo is a residential unit with HOA governance and broader owner control.
Can I use a condo-hotel unit whenever I want in Las Vegas?
- Often no; many condo-hotels limit owner days or impose blackout dates and require rental program participation for part of the year.
How is financing different for condo-hotels versus condos in Las Vegas?
- Condo-hotels are frequently non-warrantable, requiring higher down payments with portfolio lenders, while many standard condos may qualify for conventional or FHA/VA if the project is eligible.
Who handles taxes on condo-hotel nightly rentals in Clark County?
- The hotel operator typically collects and remits transient occupancy taxes, then pays owners net income after taxes and fees; confirm this in the operator agreement.
Are Las Vegas condo-hotels harder to resell than standard condos?
- Usually yes; condo-hotels tend to have narrower buyer pools, more approvals and fees, and longer timelines compared to standard condos valued by comparable sales.
