A Winning Formula for a 179% Price Increase and 37.4% Boost in Occupancy Rates in Vacation Renals.

How elevated mirror cabins with luxury amenities can optimize rental income for real estate investors.

As we previously discussed in an article, the trend of luxury cabins in natural settings and glamping sites has experienced a remarkable 155% growth over the past three years.

While developing our investment whitepaper, we identified key features that significantly contribute to higher average daily rates and increased occupancy for vacation rentals on platforms like Airbnb

• Units with access to and direct views of the water, broadly defined as a river, lake, or sea, demonstrate strong performance.
• Unique architectural features, such as reflective mirror-paneled walls or elevated constructions, often contribute to high performance in vacation rentals.
• Incorporating luxury amenities like hot tubs has the potential to increase conversion rates for each listing.

Case study: The Asheville Mirror Hotel

The Mirror Hotel, located just 20 miles outside Asheville, North Carolina, is comprised of eighteen cabins, each featuring distinctive reflective mirror-paneled walls. Aptly named the Mirror Hotel, these walls seamlessly blend into the surrounding environment, creating a unique and visually captivating experience.

This project was developed by Joanna Cahill, who was inspired to create this property after crowdsourcing opinions from repeat guests at her other hospitality venture: Asheville Glamping.

The objective of this study is to analyze the impact of luxury amenities and unique architectural features on investors’ ability to increase Average Daily Rate and Occupancy Rates. To achieve this, we will conduct a comparative analysis of unit economics between this project and others in the same area.

The municipality of Weaverville in Asheville currently has an average occupancy rate of 59% and an average daily rate of $248 for its entire market supply.

To make an adjusted comparison, we sampled all the units that have three bedrooms for six guests. The results of such a study can be found here.

The Occupancy Rate (OR) was 65% and Average Daily Rate (ADR) for our asset class has $358. For the Asheville Mirror Hotel, the Occuapcy Rate was 95% and the Average Daily Rate was $1,000.

In conclusion, the incorporation of unique architectural features and luxury amenities resulted in a 179% increase in price and a 37.4% increase in the Occupancy Rate.