anyone have any success with STR motel room?

Question

Has anyone taken a motel and did STR with any success?

This motel is not an urban motel that is ridden with crime.  This is a motel in the mountains and typical guests are economy travelers.  Units are about 200-300sqft and I'm thinking about putting in a tiny kitchenette, a breakfast table and chairs for two, and a murphy bed, and TV. I haven't seen any STR units that are as small as a motel room with very little amenities.  At that point, I'm afraid that the guest might not find value above a traditional motel.  The value that I can provide a guest above a traditional motel might be - better unit finish and furnishings, better clientele in the community, and more personalized service. Also, all units will be STR, and no motel guests.

Curious as to hear if anyone had any success doing STR in very small spaces that may not offer much more than a traditional hotel/motel.

#STR

#motel

#studio

Chase Hoover · Answer

In progress- stay tuned!  We just launched a 7-key boutique motel and we're a few weeks out from another 22-key.  We've fully remodeled both and added brand new trendy furnishings and designs.  We're the mid-range price option between a branded hotel and a vacation cabin in our area (Shenandoah Valley, VA - lots of hiking, outdoors, wineries).  No on-site staff, everything contactless and automated = super low operating expenses.

7-key (Basecamp151) - website launched but waiting on photography to come back so we can update the photos:  https://www.basecamp151.com/

22-key (Grey Pine Lodge) - website not yet launched but here's the FB page where we've been posting updates:  https://www.facebook.com/greyp...

Charlie Massey · Answer

would love to know if this model works. Also would love to know the best way to find older motel owners. It seems like there are abandoned ones all over where I live, but I've never seen any for sale.

John D. · Answer

You are providing a little more value than a typical motel, you can probably charge slightly more than an average motel.

I'm remodeling a 20-unit motel 2 hours north of San Francisco right now, we are going over the top with the design style, and will be offering it for large groups as a buyout as well.  I know some other smaller hotels/motels that have done well going super styly.

Bruce Woodruff · Answer

I just stayed in a STR last weekend (in Lake Havasu AZ) that had obviously been an older condo complex. It had been nicely redone and was full of amenities, plus nicely located. So it can be done. But there was very nice attention to detail here and it was very well run.....

Eamon Keating · Answer

Hi Ki Lee,

I have not had any success with it. However, I have stayed in a place like this a few years ago. I was trying to find the link to the place. It was in Yachats, Oregon. It looks like there are a few options when doing a quick search through AirBNB. I will ask my wife for the link when she gets home. However, I think it is a great option. Each room could have the typical things you would find in a hotel room plus a kitchen. The benefit also is that there is probably a location benefit and that was why the hotel was built in that area. It may also be cheaper because you don't have to staff the front desk as you would in a traditional hotel.

Daniel Hyman · Answer

If you do execute this plan, make sure to check with your tax advisor regarding rules of "substantial services" with regards to how you intend to operate.

Michael Baum · Answer

If you look on AirBNB and VRBO you will find plenty of hotels/motels renting rooms there.  It can be done, but I am not sure why you just don't run it as a hotel.

Paul Sandhu · Answer

It's still a motel room.  I've got a waiting list of people that are tired of staying in a motel that want to move into a furnished house of mine for these reasons:

Fully stocked traditional kitchen you would find in a house.

Laundry room with a washer and dryer.

Living room with cable/wifi/streaming HDTV.

Your own bedroom with tasteful paintings of T/A.

An outdoor grill.

It costs less than a motel room.

You can also shoot a bow/arrow or pellet gun in the back yard.  Dogs can stay in the fenced in back yard too.  Some of my places have a fire pit or horseshoes in the back yard.  There is a garden hose where you can wash your vehicle.  I've had people set up a small above ground pool too.  My biggest house sleeps 8, and it has a kegorator.  I drove by there one morning at 9:00 when the tenants had a fatigue day (every 14th day off work), they were unloading a keg from a truck.

Bruce Woodruff · Answer

There is a member here doing this in Phoenix I believe.....maybe he'll chime in.

If you do this, you better absolutely nail it. People are doing STRs to avoid the whole hotel feel. All the rooms look the same, cheaply furnished, neighbors  on both side or upstairs. You'd have to go upscale and then where's your ROI?

Will Kenner · Answer

Interesting idea. Have not heard of anything similar. My initial thought is the potential difficulty distinguishing this from a regular motel option from the client's perspective, as you mentioned. Also curious what others have to say.

anyone have any success with STR motel room?

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