Where to invest for STR and MTR

[Ivan Aldana]

Hey BP fam! I'm still doing market research and can't decide what would be a less riskier option for me, is it better to find a property in a vacation destination that's more rural and outdoors or a property in a more urban/metro area? I'm thinking that in more rural areas there's less exit strategies, like what happened when COVID hit, everybody stopped taking vacations. So since it's not really in a metro area you can't really convert it to an MTR or LTR if you had to. The only exit strategies I see is only STR, sell, or go through reserves until vacations would pick back up.While in a more metro area you can convert to MTR or LTR if need be. What do you guys think? Do you any of you guys have properties in both kind of markets? If so, which are performing better in your experience?

[Theresa Holl]

Another thing to notice is who the experts say are making money in 2024, which are luxury and eco/experience type properties.  Don't be just another vanilla (forgettable) $190 ADR listing with cell phone pictures, no SEO and the same hot tub and fire pit as everyone else.  You can do something simple like transform a garage or unfinished basement into a "wellness center" for about $10K and then make business connections with local yogis, wellness practitioners, hold meditation retreats and specialized events. Upcharge for spa boxes, maybe a massage or concierge services, etc...Those marketing strategies will boost your bookings and top line revenue, plus make you more memorable.  Think a bit like a boutique hotel owner.  The stay is just the beginning of the revenue stream, like a base line. It gets a guest in the door and you build the experience from there. 

Be creative and see what's missing from the market you're interested in, fill the gap and think of it as a business, not just an Airbnb.