Staring at listings around Canyons Village and wondering if a condo-hotel or a traditional condo is the smarter move? You are not alone. The choice impacts how you use the property, what you pay in fees, how you finance the purchase, and what resale might look like in a few years. This guide breaks down the basics so you can align your Park City plan with your lifestyle and investment goals. Let’s dive in.
Quick definitions for Park City buyers
A traditional condo gives you individual ownership of your unit and shared ownership of common areas through an HOA. You control how you use the unit, subject to CC&Rs and HOA rules. Many buyers use these as second homes, primary residences, or rentals, depending on project rules.
A condo-hotel is a deeded unit inside a building run like a hotel. A professional operator manages reservations, housekeeping, front desk, and amenities. You can often place your unit in a rental program and receive a share of revenue after fees. Owner use is sometimes limited by the rental calendar and building rules.
In Canyons Village, demand swings with ski season, holiday periods, and big events. That seasonality can benefit condo-hotel operations and short-term rentals, but it also means revenue and occupancy are not flat year round.
How ownership works
Deed, title, and agreements
Both options give you a deed to your unit. With a condo-hotel, you also accept hotel-level agreements and standards. These can include a rental management agreement, hotel operating rules, and sometimes brand or franchise requirements. Expect clear rules on furnishings, rental processes, and maintenance.
HOA, fees, and services
Traditional condo HOA dues usually cover common area maintenance, building insurance for common elements, snow removal, landscaping, exterior repairs, reserves, and administrative costs. Utilities and interior services may or may not be included.
Condo-hotel dues tend to be higher because they layer hotel operations on top of standard HOA items. Fees help fund front desk and concierge services, staffing, marketing and reservation systems, housekeeping for guests, linen service, amenities like spa or valet, and commercial insurance. If you join the rental program, your share of rental revenue is typically reduced by management, franchise, housekeeping, and booking fees before you are paid.
Rental programs and owner use
Some condo-hotel properties require participation in a rental pool. Others allow you to opt in or out. In both cases, the building’s rules and your management agreement set owner-use windows and blackout dates. Your revenue share is based on net income after operating costs. Review sample P&Ls, fee schedules, and reserves. Gross bookings are not the same as your actual income.
Traditional condos can be used for primary living, second-home use, or rentals, depending on HOA and local rules. You usually have more say in furnishings and interior choices, and you may not be bound by hotel standards.
Financing differences
Financing is often the biggest surprise.
Traditional condos typically fit conventional mortgage guidelines more easily, subject to project approval and standard underwriting. FHA and VA loans may be available if the project meets those programs’ requirements.
Condo-hotel units face tighter lender rules. Many conventional lenders restrict lending in buildings run primarily as hotels, especially where short-term rentals are the norm. Down payments and borrower qualifications can be higher. Rates and terms can also differ. The safest path is to get preapproved early and confirm that the specific project and unit are eligible for your loan type before you negotiate.
If you plan to finance, build in time for lender due diligence on the project. Ask how the appraisal will treat a condo-hotel unit and what data will be used to support value.
Taxes and insurance basics
Rental income and lodging taxes
Income from short-term rentals is taxable. You can usually deduct allowable expenses, such as mortgage interest, property taxes, HOA dues tied to rental use, insurance, utilities, management fees, and depreciation. The way you participate in management can affect how losses and income are treated by the IRS, so consult a tax professional.
Short stays are also subject to local transient lodging taxes. In Park City and Summit County, short-term rentals are typically taxed, and the operator often collects and remits taxes. In a condo-hotel, the manager usually handles this. If you self-manage a traditional condo, you may be responsible for compliance. Confirm how taxes are handled before you start renting.
Property taxes
Your unit is assessed for property tax by the county assessor. Income potential can influence market value, but the assessment is still completed at the unit level.
Insurance
Traditional condo owners usually carry an HO-6 policy for interior elements, contents, and liability, while the HOA’s master policy covers common areas. Condo-hotel properties often have a commercial master policy. You may need added coverage for personal property, short-term rental liability, and loss of rental income. Review the master policy to see where your responsibility begins and what deductibles apply.
Market and resale in Canyons Village
Seasonality and demand
Canyons Village thrives in winter with ski traffic and holiday periods, and summer events continue to grow. That means occupancy and rates can spike in peak months and soften in off-season. Review historical occupancy, average daily rates, and event impacts for the specific property before you underwrite income.
Valuation approach
Traditional condo values lean on comparable sales, price per square foot, and broader residential trends. Condo-hotel values are influenced by hotel-style metrics, such as occupancy, average daily rate, revenue per available room, net operating income, and cap rates. Brand strength and management quality matter. When you compare units, look beyond price per square foot.
Brand and management impact
Branded properties can benefit from national reservation systems, recognized standards, and guest loyalty. That can support occupancy and rates. Brands also charge franchise and marketing fees, which reduce net owner income. Always evaluate the net, not just the gross.
Reserves and assessments
Full-service buildings carry higher operating and capital costs. Review the reserve study, budgets, and the history of special assessments. Hotel-grade systems and amenities need periodic upgrades. Healthy reserves reduce the risk of surprise assessments.
Which is right for you?
Choose a condo-hotel if you prefer hands-off ownership and hotel services, and you value an on-site team to handle marketing, bookings, guests, and housekeeping. A rental program can simplify operations and smooth your owner experience.
Choose a traditional condo if you want more control, plan to use the unit as a primary or second home for longer stays, or prefer conventional financing and simpler governance. You may also prefer to choose your own property manager or rent long term.
In both cases, match the property to your goals for use, income, and exit timing.
Due-diligence checklist
Use this checklist to keep your process on track.
Condo documents
- CC&Rs, bylaws, and rules. Confirm use, rental, and alteration policies.
- Recent HOA budgets, meeting minutes, and reserve study. Review 12 to 24 months.
- History of special assessments and upcoming capital projects.
Financials and operations
- For condo-hotels: management agreement, sample owner P&Ls, and franchise fee schedules.
- Historic occupancy, average daily rate, and owner payouts for at least 12 to 36 months.
- For traditional condos: rental rules and any limits on short-term rentals.
Legal and licensing
- Verify local short-term rental licensing requirements and that the property is compliant.
- Confirm who collects and remits lodging taxes.
Financing and appraisal
- Lender confirmation that the project and unit meet your loan program’s rules.
- Clarify appraisal method, comparable sales or income approach for condo-hotel units.
Insurance
- Master policy coverage and deductibles. Identify what you must insure inside the unit.
- Ask about short-term rental liability and loss of rental income coverage.
Practical items
- Furnishing standards, alteration rules, pets, noise, parking, and storage.
- Owner-use calendar and how to reserve dates in condo-hotel programs.
- Guest access, registration, and security procedures.
Exit planning
- Recent resale comps for similar units and a sense of buyer demand.
- Any right of first refusal or association purchase rights.
Next steps
Choosing between a condo-hotel and a traditional condo at Canyons Village comes down to how you want to use the property and how hands-on you want to be. When you pair that with clear numbers on fees, financing, and net income, the right path usually becomes obvious.
If you want a tailored plan for your goals, schedule a conversation with Wayne Levinson. You will get a clear comparison of specific buildings, a review of fees and projected net income, and a financing path that fits how you plan to use the home. Let’s map your Park City playbook.
FAQs
What is a condo-hotel in Canyons Village?
- It is a deeded condo unit inside a building run as a hotel, with front desk, housekeeping, and a rental program that shares revenue with owners after fees.
How do condo-hotel fees differ from condo HOA dues?
- Condo-hotel fees include standard HOA items plus hotel operations like staffing, reservations, housekeeping, and amenities, which generally makes total monthly costs higher.
Can I finance a condo-hotel the same way as a traditional condo?
- Often not, since many lenders have stricter rules for condo-hotels, so expect tighter underwriting and confirm project eligibility before you write an offer.
Who collects lodging taxes on short-term rentals in Park City?
- In condo-hotels, the manager usually collects and remits taxes, while in self-managed rentals you should confirm your responsibility for collection and remittance.
How is a condo-hotel valued compared with a traditional condo?
- Traditional condos lean on comparable sales, while condo-hotels add hotel metrics such as occupancy, average daily rate, and net operating income to the analysis.
What documents should I review before buying in Canyons Village?
- Gather CC&Rs, HOA budgets and minutes, reserve studies, management agreements, sample P&Ls, occupancy history, insurance policies, and lender confirmation of project eligibility.
