Condo‑Hotel vs Condo: Hollywood Beach Investment Guide

Thinking about buying on Hollywood Beach and unsure whether a condo-hotel or a traditional condo fits your goals? You’re not alone. Each option plays by different rules that can affect your financing, taxes, insurance, returns, and even how often you can stay. This guide breaks down the local regulations, key differences, and a step-by-step checklist so you can invest with confidence. Let’s dive in.

Condo-hotel basics in Hollywood

A condo-hotel is a condo building that is licensed and operated as a hotel with unified management, a front desk, and hotel services. In Hollywood, the city code sets strict requirements for this classification, including a minimum of 200 rooms, unified management, and a central registration desk. Owners are limited to occupying their rooms for no more than 150 days in any 12-month period, and homesteading of rooms is prohibited. You can review the city’s condo-hotel rules in the Hollywood zoning code. See the City of Hollywood condo-hotel standards.

How a condo-hotel differs from a condo

Owner use and rental rules

• Condo-hotels follow hotel-style operations, including centralized check-in. Hollywood limits owner use to 150 days per year in these properties. Review the city code.
• Short-term rentals in residential condos are regulated. Hollywood requires a Vacation Rental License for rentals under six months, plus inspections and compliance with local standards. Check Hollywood’s Vacation Rental License program.
• Florida treats short stays as transient lodging for tax purposes, which affects how rentals are taxed and licensed. See Florida’s transient rental tax statute.

Financing options

• Many condo-hotels are ineligible for FHA loans and often do not meet Fannie Mae’s project standards, which can push buyers to portfolio or cash financing. Expect larger down payments and potentially higher rates. See FHA guidance on condo-hotels and Fannie Mae’s ineligible project list.
• Warrantable residential condos typically offer broader and more affordable loan choices.

Taxes you must collect and remit

• For rentals of six months or less, Broward County imposes a 6% Tourist Development Tax. Owners or operators must register, collect, and remit this tax. Learn about Broward’s Tourist Development Tax.
• State transient rental taxes also apply. Even if a manager helps, you are usually still responsible for proper registration and filings. Review Florida’s transient rental tax.

Insurance and risk

• Insurance costs for Florida condos have been volatile, with higher premiums common near the coast. Association policies and deductibles can drive special assessments. See local reporting on insurance trends.
• Condo-hotels may face different coverage structures and higher commercial exposure because of frequent guest turnover. Always review the building’s master policy and deductibles.

Governance and operations

• In Hollywood, condo-hotels must have unified management, a front desk, and hotel-style systems. Many also use mandatory rental programs and revenue-sharing agreements that affect flexibility and cash flow. Review the city’s definition and requirements.
• Residential condo associations often limit short-term rentals and may favor long-term leasing. Confirm the rental policy, any right of first refusal, and transfer rules in the governing documents.

Which model fits your goal?

You want a beach home for personal use

• Best fit: Often a conventional condo with flexible owner-occupancy and a rental policy that matches your lifestyle.
• Financing: More lender options and potentially lower rates in warrantable projects.
• Watch-outs: Insurance costs, reserve requirements, and possible future assessments due to statewide safety rules. See coverage on Florida condo safety changes.

You want steady rental income with less turnover

• Best fit: A residential condo that allows long-term leases.
• Financing: Broader access to conventional loans if the project is warrantable.
• Watch-outs: Association lease limits, approval processes, and potential special assessments.

You want flexible short stays and peak-season revenue

• Best fit: A condo-hotel or a condo that legally permits short-term rentals with the proper city license.
• Financing: Expect portfolio or cash-heavy financing for condo-hotels; plan for larger down payments.
• Watch-outs: Management fees, revenue-share terms, tourist taxes, and seasonality that can swing monthly income.

Local demand snapshot: Why STRs can work here

Broward County is a high-visit market, supported by airport traffic and year-round leisure demand. Regional reporting shows Broward hosting roughly 22 million visitors in 2024, with hotel occupancy around the low 70% range. See regional tourism context. Passenger traffic at Fort Lauderdale–Hollywood International Airport topped 35 million in 2024, supporting steady visitor flow. Review FLL passenger statistics. This demand supports the case for short-term rentals, though competition and seasonality can affect rates and occupancy.

Your due-diligence checklist

• Licensing status: Confirm whether the building is a condo-hotel, a residential condo, or a vacation rental property. Verify registration and inspections in Hollywood’s program and look for any past enforcement. Check the city’s Vacation Rental License page.
• Governing documents: Request the declaration, bylaws, rules, rental policy, meeting minutes, budgets, reserve studies, master insurance certificates, and any pending litigation.
• Building condition: Review recent structural or engineering reports, the reserve study, and the plan for required repairs or capital projects. Florida’s safety laws have increased inspection and reserve requirements, which can raise carrying costs. Learn more about legislative changes.
• Financing: Ask lenders whether the project is warrantable and whether FHA or conventional financing is available. For condo-hotels, expect portfolio or cash options. See FHA guidance and Fannie Mae’s policy reference.
• Insurance: Get the association’s master policy, deductibles, and loss history. Obtain multiple HO-6 quotes and confirm wind and flood coverage. Review local insurance trends.
• Taxes and filings: Confirm who collects and remits the 6% Broward Tourist Development Tax and state transient taxes. Request prior tax filings or revenue statements if available. See Broward’s TDT requirements and Florida’s transient tax statute.
• Revenue model: If investing for income, request 12 to 24 months of rental history, management agreements, and a pro forma that nets fees, utilities, reserves, and taxes.

Pros and cons at a glance

Condo-hotel

• Pros: Hotel-grade services, short-stay flexibility, potential for strong peak-season rates, unified marketing and booking.
• Cons: Limited owner occupancy, narrower financing options, higher management and program fees, different insurance and tax obligations, and potentially narrower resale pool.

Conventional condo

• Pros: Broader financing access in warrantable projects, steadier income with long-term leasing, more control over use and carrying costs.
• Cons: May restrict short-term rentals, subject to rising insurance and reserve requirements, and potential special assessments.

Bottom line

Both paths can work on Hollywood Beach. A condo-hotel may deliver higher peak-season revenue but comes with hotel-style rules and limited financing. A traditional condo may offer easier financing and steadier returns if long-term leasing is allowed. If you want help matching your goals to the right property and rules, connect with Isaias Franco for tailored guidance.

FAQs

Can I live full time in a Hollywood Beach condo-hotel unit?

• Hollywood’s code generally limits owner occupancy in condo-hotels to 150 days in any 12-month period, and some buildings add more restrictions.

What mortgage options exist for condo-hotels in Hollywood?

• FHA financing is not allowed for condo-hotels and many are ineligible for Fannie Mae, so buyers often use portfolio loans or cash with larger down payments.

What taxes apply to short-term rentals on Hollywood Beach?

• Rentals of six months or less require collecting Broward’s 6% Tourist Development Tax plus state transient rental taxes, alongside Hollywood’s licensing rules.

How do insurance costs compare between condo-hotels and condos?

• Coastal Florida insurance has risen in recent years; condo-hotels may carry different or higher exposures due to guest turnover, so review the master policy and deductibles.

What inspections and reserves should I ask about before buying a condo in Broward?

• Request recent structural and engineering reports, reserve studies, and any planned assessments since Florida safety laws have increased requirements for many buildings.