How to differentiate your condotel from others in your building or immediate area?

Question

I'm currently looking at my first STR, and I'm focused on several beach front condotels. I'm looking in the Carolinas, but I think the question would apply to condotels in any beach area.

It seems like with condotels you are forced to compete primarily on price since your amenities or units can be very similar. If you are in one of these markets/units, how do you differentiate your unit and your listing from those surrounding you? How do you make it stand out to command a higher rate, so that the guest doesn't choose the guy next door because he's $5/night cheaper?

The only thing I can really come up with is design/decorating, and making your unit visually more appealing. But that seems pretty basic, so I think I must be missing something. What are you doing to increase occupancy without sacrificing income?

Thank you for sharing your wisdom!

Andrew Steffens · Answer

I do not have condotel experience, but a lot of STR experience where there is often fierce competition.

Since you do not have control of anything outside of your four walls, looking inward you nailed it with top tier design, and of course price.

Try to think outside of the box, adding something like an arcade game, pool table, additional bedding options (like Murphy beds). You will also want to follow other best practices and do not skimp on things like pro photos.

If you are self managing you also have control over guest experience. Your reviews can and should be better than your competition. Go the extra mile and provide a small gift at check in, something like that will all help.

Dena Beck · Answer

@Andrew Steffens, thanks for the input! I had thought about a small gift. The units are pretty small, so pool table is out, but I might see what I can find in the way of an arcade game or something like that. I've not seen any listings nearby with something like that included. Thank you. I appreciate your entire post!

Dena Beck · Answer

Thank you @Sarah Kensinger. Once we get an offer in, I may reach out!

Sarah Kensinger · Answer

You were already given great ideas! I would also say design, little details, and great host communication! If you need a designer that could either do remote work or travel to the area, reach out and I can give you a list.

Dena Beck · Answer

Thank you.

Shannon OKelley · Answer

I think it depends on what service you need. If you are leaning toward E-Design then it doesn't really matter where he or she is based. It's more about who you click with and who understands your goals for the property. If you think you need full service design, then it probably makes more sense to use someone local. I typically only do E-Design for out-of-area clients, but I know there are STR designers who will travel. But I would think you'd need to factor in paying for their travel in that situation, whether outright or included in their design fee.

Dena Beck · Answer

Thank you!! Do you recommend a designer who is local to the STR? @Shannon OKelley

Shannon OKelley · Answer

Reading the reviews can be tedious, but so valuable! And if design is nor your strong suit, then I'd definitely recommend working with a designer, particularly one who is experienced with STR design since it is quite different from primary residence design. Most of us offer both E-Design options as well as full-service, so you can choose what level of involvement you want to have in the process. E-Design is always the more affordable option, and if you have the time and live locally to your property then that might be the way to go. The designer creates a plan, and then hands it over to you to implement. If you have a full-time job, don't live in the same city, etc. then full-service might be the best fit for you. This is where the designer handles both the design AND the ordering and installation. Either way, working with a designer is an investment, but it's the biggest thing that will set you apart in an all STR building :)

Dena Beck · Answer

@Shannon OKelley thank you for the input. Considered consulting with an interior designer for help as it is not my strongest point. Reading all the reviews is a great idea. Thank you.

How to differentiate your condotel from others in your building or immediate area?

How to differentiate your condotel from others in your building or immediate area?

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