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- 🥂 Luxury Short Term Rentals - 👉 Experiential Properties Drive Big Returns
🥂 Luxury Short Term Rentals - 👉 Experiential Properties Drive Big Returns
Ben Apple
May 18, 2023
Hi friends - welcome to the new readers and thank you to all for your continued support.
If you have any feedback, comments, or ideas for future trend reports, please drop a reply to this email or click the feedback form at the bottom to help me better meet the needs of this growing community!
Okay, on to this week's trend breakdown.
Here’s what you will learn in today’s email:
How much can you make with luxury short term rentals?
Who are the players in the industry?
What are some examples of top properties?
What is the most expensive luxury short term rentaln?
What tools can you use to manage?
And more!
👉 Problem
The growing vacation rental market has brought to market many new properties and offerings, but there are gaps in the market to serve travelers and guests looking for more unique and personalized experiences.
⚡ Big Idea
Today's travelers are looking for one-of-a-kind experiences. While demand for short term vacation rentals has increased, there is an opportunity to deliver unique, luxury experiences.
📊 Charts and Data
This Precedence Research report shows the growth projection of the short term vacation rental market to an estimated $111B in 2030.
There has been a growth in vacation rentals across all price tiers with demand further shifting towards upscale and luxury units.
🔥 Opportunities
Increase Returns with Exclusive, Unique Properties
Creating exclusive experiences and one-of-a-kind properties can deliver outsized returns.
This largest log cabin in America makes $1.3M per year on Airbnb!
Mark Jenney builds unique, luxury properties like this 15 acre estate in San Diego with backyard resort featuring baseball field, pickleball, mini-golf, soccer, and any other activity you can imagine.
For $3k+ per night, you can rent this California Castle in the Forest.
Invest in Fractional Luxury Properties
Fractional real estate investing platforms (see previous report) let you invest in luxury short term rentals in prime destinations around the world.
Arrived lets you invest in vacation rental properties like this Asheville, NC property.
Manage Properties
Many property managers are making a living managing short term rentals for others for a fee.
Red Cactus Rentals manages luxury properties like this 10 BR home in Scottsdale, AZ.
List My Rental Home provides custom property management solutions from design and investment to 24/7 maintenance.
Raise Funds for Luxury Short Term Rentals
New funds are emerging to serve this growing asset class.
Shared Estates runs a fund for luxury short term rentals in the Berkshires.
Stomp Capital runs a private equity fund that owns and manages short term rentals like this West Palm Beach estate.
Utilize Technology to Identify Properties, Manage, and Create Value
💼 Case Studies
Mark Jenney's thread highlights 17 luxury Airbnb properties that make over $1M per year!
Musha Cay, David Copperfield's Bahamas island, is one of the most expensive Airbnb properties, listed at $60k per night!
🤝 Players
Airbnb Luxe is the upper echelon of Airbnb properties, a collection of 2,000 luxury homes, resulting from Airbnb's $200M acquisition of Luxury Retreats.
VRBO is a top player in the short term rental space, with a large collection of luxury listings.
Homes & Villas by Marriott was a Marriott platform launched in 2019 with 2,000 luxury homes to compete in the luxury short term rental space.
Kid&Coe is a platform designed for families with kids, with beautiful luxury properties in key destinations around the globe, like this beach home in Lisbon.
Mint House offers modern luxury apartment hotel rooms like in this art deco lower Manhattan hotel.
Life House has a portfolio of luxury short term rental hotels and offers property management services.
✨ Predictions
More personalized and unique properties will be in demand, with special amenities like these backyard resorts.
Growth of luxury homes used for parties, events, retreats, such as AvantStay
More developers will build condos with the flexibility to use as short term rental properties, such as Nexo in Miami.
Personalized concierge will grow, like LVH Global, offering luxury property owners the ability to join a network of luxury homes, with concierge services such as yacht and jet rental
Demand will continue to grow for unique properties and experiences, such as this rental on the side of a cliff.
⚠️ Risks
Luxury short term rentals may operate at a lower occupancy.
Traveler preferences and demand for certain property types and amenities may decline.
Luxury properties have higher costs to purchase, maintain, and manage.
✅ Key Takeaways
There are unique, luxury short term rental properties making $1M per year!
Today's travelers demand one-of-a-kind experiences.
With Millennial and Gen Z's preference for experience over things, the experiential luxury travel market will continue to grow and evolve.
🔗 Additional Resources
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