Can someone help explain exactly what “Stay Alfred” is

Question

Can someone help explain exactly what “Stay Alfred” is?

Benjamin Vail · Answer

I think you mean "does anyone know what Stay Alfred "WAS"?

I read an article yesterday that Stay Alfred filed for Chapter 7 Bankruptcy yesterday! I don't want to see anyone suffer, but I can't hide my excitement for this news... Let me start from the beginning.

Stay Alfred is a short term rental company, (Like Sonder, Vacasa, Domio, Lyric, ect..). Their main business model was renting several apartments from new built apartment buildings, and filling them with furniture, and re-renting them back out on Airbnb and short term platforms like Vrbo. Stay Alfed is one of the companies that got VC backed funding. They raised $60 million, and were off to the races. In my hometown of Columbus Ohio, they came in and opened 60 units in a matter of a month. They signed 60 leases, and opened units in many of the new built buildings.

I like business competition just as much as the next red-blooded American, but for me running a start-up STR management company that I started in my garage, and funded myself, I can not compete with a $60 million backed VC company. I just can't. They operated at a loss, in order to soak up market share.

I made it to the VRMA international conference this year in New Orleans, and I met some of the people who worked at Stay Alfred, they are nice people. I sat in a session on revenue managment, and It was really cool to sit in a room with the leaders of the biggest STR companies in the world, and what I learned was that they really don't know that much more about revenue management (dynamic pricing) than I do!

Fast forward to 3 weeks ago,... Stay Alfred announced that they were going to "put a hold on all rentals for 8 weeks, to pass the virus and open back up". I thought that was strange, because how much that would actually cost them to shut down with $0 revenue for 8 weeks and how would they pay rent on the thousands of leases they just singed nationwide?

Then yesterday I could not help but be excited to learn that they are closing for good. I am already making a plan for how I will approach those landlords about taking over some of the Stay Alfred dumped units.

I am so glad you asked.... Can someone explain what "Stay Alfred" is?... And like I said, you should change it to "What Stay Alfred Was?" ... :)

Paul Sandhu · Answer

Alfred is also the manager of The Batcave.

In some of my STRs, I have a framed print that says "Always be yourself. But if you can be Batman, be Batman."

Julie McCoy · Answer

They're a large-scale arbitrage company.  They have master leases on urban apartment/condo complexes or blocks of units and then rent them out short term, making money on the margins.

They are different from AirBNB/VRBO; AirBNB and VRBO are just platforms where operators can list.  Stay Alfred is the operator of a large portfolio of urban units, likely backed by private equity.

John Underwood · Answer

Never heard of it so it must not be too important.

Sean McDonnell · Answer

I think they are wannabe Airbnb/VRBO in that they are a vacation rental company. They are a platform that leases residential space to families on travel.

Jingru Sui · Answer

I met some of Stayafred people in NOLA at VRMA too. Where do you see the article about them filling bankruptcy? could you share?

Robert Ellis · Answer

I doubt there will be much of a market for taking over these leases in columbus. You know @Charles Hawkins and he manages for some of these larger apartment complexes and they aren't desperate to lease their units. Especially going into the summer. Good luck though

Todd Goedeke · Answer

@Benjamin Vail I understand your enthusiasm now that a competitor is bankrupt, but how will you take advantage of the situation as compared to others who will do likewise?

In the marketing world how do you set yourself apart from the big platforms if all you do is rely on them for marketing?

Remington Lyman · Answer

Did you walk my unit?

Stephen Keighery · Answer

I stayed at the one near Canal St several years ago. They are basically short term rentals. I think they may have been around pre-AirBnB days. I am not sure whether they own the properties, my guess would be they lease them or offer a managed service to the home owners. I don't see how they will remain relevant with AirBnB unless they use the platform and act as a management company.

Can someone help explain exactly what “Stay Alfred” is

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