Quote from @JD Martin:
Good afternoon all my fellow STR'ers!
I have a home in Florida that I STR in Four Corners, FL when I'm not there. It is a good sized home (3000 sf) in a great location on a lake. I've done reasonably well renting it out, though I'm a little different than many STR owners in that it doesn't particularly bother me if it makes any money since I use it myself.
I'm at the point where I really need (or maybe want is a better term, since technically these things still function) to make some larger improvements - I want to remove the remaining carpet in the home for all LVT, finish out the modern touches I've put in like modern light fixtures, furniture, high dollar ceiling fans, etc, replace the countertops with a nice quartz, etc. For my own personal use and preferences, all of these things make sense. From a dollar cost point of view, I think they are probably of low utility, as a lot of the properties around here compete essentially on price only.
My personal point of view is that I don't want to compete with the bottom feeders around here. Not only do I want a nicer home for the times I am there (several months during the year), I think that there could be a niche market for upscale properties that offer better furnishings and amenities. For example, up until now we've been strictly self-service, but I am considering adding some specific concierge services to stays. I am considering axing the weekend stay people as they seem to be hardest on properties and are also the cheapest/brokest guests. ETC. I've discussed the idea with my PM who doesn't think it is a bad idea but that it will almost certainly generate less bookings. That seems likely to me as well, though I'm not sure I care (I could leave the house vacant all year if I wanted). I'm not interested in "theming" like Star Wars or Disney rooms as my adult kids, siblings and older parents also come stay with us here and they don't need to sleep in Little Mermaid rooms.
In any case, I'm hoping to get some insight from anyone who has upscaled their properties to attract a better class (and higher paying) of guests - what was your experience? Of course, if you're in the Orlando/Florida area that's a bonus, but anywhere is fine with me especially if it's a big vacation area.
Sorry I didn't post sooner, but your post raises some interesting questions.
1. you're getting ready to invest in your property, primarily because you and your family would enjoy it more. You don't want a "typical" Disney themed property.
2. Revenue isn't your TOP priority (but who wouldn't mind making a bit more money?)
3. Nearby properties compete mostly on price.
4. You would like to attract a niche market of better, higher paying guests and are considering concierge services as part of the package.
5. Your property is lakefront - a huge plus.
In my opinion, you can definitely improve the property in a way that will make it more comfortable/luxurious for your family AND attract a larger market of more discriminating guests willing to pay higher rates. If you are already investing in reno, go the extra mile to make the property really special.
1. I would consider a compromise solution - don't completely eliminate theming but add it to just a few rooms and do it in a tasteful "sophisticated" way that won't be off putting to family members. Let's face it, people come to Orlando to go to theme parks, and if you have NO theming you will exclude a large part of your market. Also, consider adding a game room if you don't already have one. That is another opportunity for theming and higher rates.
2. If you are not currently using dynamic pricing, I can't emphasize enough how important this is. For instance, consider longer stay minimums in peak season and allow shorter weekend stays (at higher rates) in the slower months. Having the correct approach to revenue management is super important, especially when nearby properties are purely price-driven. This is also why having the right decor is so important, to make it stand out.
3. For the Orlando/Disney market, not sure how much of a draw the concierge approach will be...but if you do it make sure it's done well. Whoever provides the service must be a pro. In my opinion, decor is way more important.
4. Really emphasize the lakefront view in photos. Consider adding some family-friendly amenities...4 square, Giant Jenga, a sturdy poolside basketball hoop etc. Make sure the outdoor table is beautifully set for photos. All of these things will help guests understand they can have a luxurious and fun stay in your property and justify higher rates.
Food for thought!
