diff --git a/app/models/conversion_host.rb b/app/models/conversion_host.rb
index 92fa69e3e1b..774e085424a 100644
--- a/app/models/conversion_host.rb
+++ b/app/models/conversion_host.rb
@@ -21,7 +21,7 @@ class ConversionHost < ApplicationRecord
     :uniqueness => true,
     :format     => { :with => Resolv::AddressRegex },
     :inclusion  => { :in => ->(conversion_host) { conversion_host.resource.ipaddresses } },
-    :unless     => ->(conversion_host) { conversion_host.resource.blank? || conversion_host.resource.ipaddresses.blank? },
+    :unless     => ->(conversion_host) { conversion_host.address.blank? || conversion_host.resource.blank? || conversion_host.resource.ipaddresses.blank? },
     :presence   => false
 
   validate :resource_supports_conversion_host
diff --git a/spec/models/conversion_host_spec.rb b/spec/models/conversion_host_spec.rb
index 4e733185262..93c158cb8a9 100644
--- a/spec/models/conversion_host_spec.rb
+++ b/spec/models/conversion_host_spec.rb
@@ -309,6 +309,7 @@
     end
 
     it "is valid if an address is not provided" do
+      allow(vm).to receive(:ipaddresses).and_return(['127.0.0.1'])
       conversion_host = ConversionHost.new(:name => "test", :resource => vm)
       expect(conversion_host.valid?).to be(true)
     end