Many people dream about buying a condominium in Park City that serves as a second home that pays for itself when not in use. A condo-hotel can be a great solution. Condo-hotels are condominiums (each individually owned) in a building that has a front desk, maid service, and all the amenities one would expect from a hotel.
There are condo-hotels in all sizes and price points in Park City. Here are just a few examples of properties that will cover the cost of ownership. Some even provide a tidy profit after ownership costs are paid. Note that I did not research every single condo-hotel in Park City. This list is based on properties I have shown and sold in the past year. Net revenues are actual numbers for 2017. Rental revenue will always vary based on owner use.
- Price is based on the LIST PRICE.
- Cost to own is based on TAXES + HOA
- Return is Net After Cost to Own divided by Purchase Price
Hotel Park City Studio
Price: $450,0000
Cost to own: $11,611
Net rental revenue to owner: $29,894
Net after cost to own: $18,283
Return: 4.1%
Waldorf Astoria Studio
Price: $399,000
Cost to own: $8,222
Net rental revenue to owner: $36,720
Net after cost to own: $28,498
Return: 7.1%
Sundial Lodge Studio
Price: $359,900
Cost to own: $7,607
Net rental revenue to owner: $19,000
Net after cost to own: $11,393
Return: 3.1%
Lodges at Deer Valley – 3 Bedroom
Price: $1,000,000
Cost to own: $22,291
Net rental revenue to owner: $36,667
Net after cost to own: $14,396
Return: 1.4%
St. Regis Deer Valley – 3 Bedroom
Price: $2,575,000
Cost to own: $54,316
Net rental revenue to owner: $60,371
Net after cost to own: $6,055
Return: 0.235%
Montage Deer Valley – 3 Bedroom
Price: $4,450,000
Cost to own: $57,308
Net rental revenue to owner: $145,000
Net after cost to own: $87,692
Return: 1.98%
When searching for a condo-hotel property the return on investment is important, but so is the actual property if it will also function as a second home. I have had clients choose a lower return just because they preferred a particular location or unit. The great news is that with a cash investment, all of these properties cover their cost of ownership. Some of these properties generate enough income to also cover a mortgage. With the volatility of the stock market, wouldn’t it be nice to park some investment funds in a Park City property that you and your family will enjoy?