Considering a condo-hotel in Brickell because you want both lifestyle and income? You are not alone. Brickell’s business energy, international appeal, and walkable amenities create steady short-stay demand, but the rules and returns are not the same as a typical condo. In this guide, you’ll learn how condo-hotels work in Miami, what governs owner use and rentals, how to evaluate returns, and the due diligence that protects your investment. Let’s dive in.
Condo-hotel basics in Brickell
A condo-hotel is a condominium where individual units can operate as hotel rooms. You own the unit, and a hotel operator often manages reservations, housekeeping, pricing, and guest services. You may have limited personal-use days and the option or obligation to join a rental program.
In Brickell, you’ll see variations. Some buildings allow owner occupancy with an optional rental program. Others have mandatory rental periods or centralized hotel management. Many are branded residences with hotel-level services that appeal to business and leisure guests.
The key point is that you have two layers of governance. You are subject to residential condo rules and a commercial relationship with a hotel operator. Review both closely because they drive how you use the property, how income is shared, and your ongoing costs.
Ownership rules you live by
Your condo documents set use and rental restrictions. They outline minimum rental periods, whether short-term stays are allowed, and how common areas are managed. The hotel management agreement covers reservation priority, owner use scheduling, payout calculations, standards, and access.
Expect limits on personal occupancy. Many condo-hotels cap owner use days and may have blackout dates during peak season or major events. Confirm any owner-use fees for housekeeping or turnovers.
Most projects restrict independent listing. Even if short-term rentals are allowed, many condo-hotels require all rentals to run through the hotel operator rather than platforms. This helps maintain standards and safety and also impacts how income flows to you.
Miami rules, taxes, and compliance
Florida’s Condominium Act (Chapter 718) governs many parts of condo life, including governance, assessments, reserves, and disclosures. Your declaration, bylaws, rules, and amendments explain what is permitted for rentals and owner use. Always read them, including any referenced hotel or franchise agreements.
Because Brickell sits within the City of Miami, you must follow city ordinances for transient lodging and short-term rental registration, plus building safety and occupancy rules. Unincorporated Miami-Dade County has different rules, so focus on City of Miami requirements for properties in Brickell.
Short stays typically trigger state sales tax and local transient or tourist development taxes. Hotel operators or platforms often collect and remit these taxes, but you should verify who is responsible and how it appears on your statements. Rental income is taxable, and using a unit for transient lodging can affect property tax valuations and eligibility for certain exemptions. A tax advisor with hospitality experience can help you plan for these impacts.
Projects operating as hotels must comply with zoning approvals and commercial life-safety standards. That can influence how the building is staffed and insured, which in turn affects your HOA fees.
How condo-hotel returns are generated
Your revenue is driven by ADR and occupancy. ADR is the average nightly rate. Occupancy is the share of nights booked in a period. Room revenue is ADR times occupancy times the number of nights.
Owner payouts are set by the management agreement. Common structures include a split of gross room revenue, a split of net revenue after the operator’s expenses, or a fixed rent lease to the operator. Review exactly which expenses are deducted before your share is calculated. Franchise fees, marketing and distribution costs, housekeeping, and an FF&E reserve may come out first.
Because the hotel brand and operator handle pricing, distribution, and service, you trade some control for convenience and access to hotel-level demand. The right operator can lift ADR, but fees and costs can offset that gain.
Costs that reduce returns
Several expense categories influence your net payout:
- HOA assessments. Hotel-style staffing, amenities, and insurance often mean higher monthly fees than a typical condo. Special assessments or capital projects can add to costs.
- Operator and brand fees. Management commissions, franchise fees, and distribution or OTA costs can be sizable. Understand each percentage and the order of deductions.
- Housekeeping and turnover. Charges are often per stay. Higher turnover can mean higher cleaning costs.
- Taxes and insurance. Transient taxes are collected on stays, and owners owe income taxes on distributions. Insurance requirements may be more robust for units in a hotel operation.
- Financing costs. Lending is more specialized for condo-hotels and often carries higher rates or larger down payments.
- Vacancy and seasonality. Brickell demand is seasonal, with a high winter season and slower summers. This affects ADR, occupancy, and cash flow timing.
Financing and insurance reality
Financing for condo-hotels is more constrained than for standard condos. Many conventional, FHA, and VA programs restrict loans on condo-hotel units. Private and portfolio lenders often serve this niche, but they may require larger down payments, higher interest rates, and tighter underwriting.
Before you make an offer, get pre-approval that specifically covers condo-hotel units. Lenders may review the project’s budget, reserves, rental concentration, and the hotel management agreement to assess risk. Being prepared with the right lender can save time and protect your deposit timeline.
Model your Brickell unit like a pro
Start with hard data. Request historical ADR and occupancy for your unit or comparable units. Ask for owner payout statements for the last 12 to 36 months. Review the condo budget, recent special assessments, and the project’s reserve study if available. Read the hotel management agreement to confirm the payout formula and timing.
Then build a simple framework:
- Estimate owner share of room revenue based on the contract.
- Subtract HOA dues, insurance, utilities you are responsible for, and any program fees.
- Account for taxes and debt service to calculate net cash flow.
- Run sensitivity scenarios for ADR and occupancy, plus potential HOA or insurance increases.
Brickell’s seasonality matters. Model high, mid, and low seasons and check how blackout dates or owner-use days could affect available inventory for the hotel program.
Market drivers and risks in Brickell
Brickell draws business travelers, international visitors, and leisure guests who want proximity to downtown, dining, and nightlife. Cruise and convention activity and access to the airport help support midweek and weekend demand.
New supply can pressure ADR and occupancy. Watch the pipeline for new hotel and residential projects that permit short stays. Macro trends like interest rates, tourism cycles, international capital flows, and storms can also move the market.
Resale markets for condo-hotel units can be narrower. Buyers may focus on income history, restrictions, and fee structures. Keep complete performance records to support resale value.
Due diligence checklist
Use this list to organize your review before you buy or sell:
Legal and governance
- Full condo declaration, bylaws, rules, and amendments.
- Hotel management agreement and rental program participation agreements.
- Association budgets, audited financials, reserve studies, and recent meeting minutes.
- Estoppel certificate showing assessment status and pending claims.
- Litigation history for the association or developer.
Financial and operational
- 12 to 36 months of ADR, occupancy, and owner payout statements for the unit and comparables.
- Fee schedule for management, franchise, distribution, housekeeping, and FF&E reserves.
- HOA fee history and what dues cover, including insurance and staffing.
- Confirmation of who collects and remits transient taxes and what reports you receive.
Financing and taxes
- Written lender pre-approval for condo-hotel financing with down payment and rate guidance.
- Tax planning for transient taxes, income tax treatment, depreciation, and property valuation effects.
Physical and market
- Standard inspection plus FF&E condition review.
- Booking calendars, owner-use scheduling, and current occupancy patterns.
- Conversations with the on-site general manager and current owners to validate operations.
Practical owner questions
- Exact payout formula and disbursement timetable.
- Number of units in the rental pool and owner-use policies.
- Blackout dates, caps on owner use, and priority rules.
- Upcoming capital projects and expected owner contributions.
- Insurance requirements beyond the master policy.
For sellers: Position your unit for value
If you plan to sell, treat your unit like a small business with a track record. Organize 12 to 36 months of payout statements, ADR and occupancy history, and any reconciliations from the operator. Clarify the current rental program terms, housekeeping charges, and FF&E reserve status. Resolve outstanding assessments or disclosures early to keep diligence smooth.
Consider light refreshes that lift perceived value. Hotel-use units often benefit from updated furniture, paint, and soft goods timed to the FF&E cycle. Clean documentation and a fresh presentation can widen the buyer pool and support pricing.
If you value discretion or want to test demand, you can explore private listing strategies alongside premium distribution. A boutique, legally-informed approach helps you address investor questions, manage risk, and keep the process efficient.
When you are ready for next steps in Brickell, reach out for a private conversation. You will get a clear view of rules, returns, and your most effective path to buy, hold, or sell.
Contact Carlos Beltran for a risk-aware, concierge approach tailored to condo-hotels in Brickell.
FAQs
Can I live full time in a Brickell condo-hotel unit?
- Possibly, but many projects limit owner occupancy or tie full-time use to restrictions on rental eligibility, so confirm what your condo documents and hotel program allow.
Can I rent my unit on platforms like Airbnb instead of the hotel program?
- Usually no. Most condo-hotels require centralized rentals through the operator and prohibit independent listings to maintain standards and compliance.
How are returns calculated for condo-hotel units in Miami?
- Returns come from ADR times occupancy, minus operator fees, HOA dues, housekeeping, taxes, financing, and reserves, with your owner share defined by the management agreement.
Is financing available for condo-hotel purchases?
- Yes, but it is specialized. Expect higher down payments, potentially higher rates, and a lender review of the building’s financials and hotel agreement.
What taxes apply to short-term stays in Brickell?
- Short-term rentals typically incur state sales tax and local transient or tourist taxes, and rental income is taxable; confirm who remits these and how it appears on your owner statements.
What documents should I review before buying a condo-hotel unit?
- Review the condo declaration and rules, hotel management and rental program agreements, association budgets and reserves, 12 to 36 months of payout history, and any litigation or assessments.
