Nashville Tennessee United States
MASON LOFTS AT WEST END
Originally constructed with a “build-to-sell” strategy in 2019, investors decided to change to a “build-to-rent” strategy after seeing the success of the short-term rental market in Nashville, TN.
The building was put under the management of a national property management company in late 2019, four (4) months prior to the pandemic. The management company’s business model was to provide a 100% contactless customer service, by using modern technology.
The asset’s value began to diminish as the property manager maintained lower than 20% above the pre-pandemic ADR (source: Beyond Pricing) than market rates bringing a lower quality clientele to the building, failed to properly maintain the property, was never on-site to welcome guests or check units, and did not transparently report the property’s financial performance to investors.
Investors began the search for a new property management company in the Summer of 2020 as the asset continued to struggle outside of the pandemic’s pressure.
The LLC’s Operating Partner hired Melissa and her team to not only property manage, but to convert 14 condo rentals into a boutique hotel that could be integrated into the local neighborhood, and create long-term value for the asset leveraging an on-site management strategy.
Melissa and her team quickly went to work in making repairs, changing rates, building guest journeys focused on the clientele’s needs/interests, and putting a transparent financial reporting structure into place for investors. She and her team also put several sustainability practices into place to reduce waste and educate guests, a component that is often highlighted in guest reviews. Melissa and her team Leveraged the geographical location near the hospitals and Universities, as well as the sustainability plan, to attract a top-notch clientele.
Mason Lofts is now a high performing Aparthotel that has become a staple in its Nashville’s West End neighborhood. The property is cashflow positive with NOI margins exceeding 35%. Occupancy is hovering just over 70% in 2021 with an Average Daily Rate (ADR) of: ~$300 which is $100 over the originally budgeted ADR for 2021.
Within one year, the revenue increased by 143%, from $344,000 to $836,000!
Customer reviews on both AirBnb and Google (two largest sources of revenue exceed 4.9 / 5.0. The property is frequently revisited by returning guests who find Mason’s apartments, location and service to be best-in-class!
Finally, Melissa and her team have also started several noteworthy initiatives including nightly packages to drive revenue, bike rentals, composting, gym partnerships, and discounted rates with local businesses for the building’s guests!
Humming Host helped their client redesign and obtain a permit after they acquired a 2 BD condo at 1700 Belcourt – a 2BR, 2Bath apartment with balcony overlooking Belmont University. Redesign cost: 20K. Closing date: 11/29/21. Time spent on redesign: 30 days. Permit applied for on 12/01/21, and obtained on 12/28/21. Opening date: 12/29/21. First booking: 12/30/21!
Our performance: from January to June 2022, our revenue was 7K higher than the 75th percentile in the area. Our performance is driven by a higher ADR than the comps, at $280 (despite 3 months of “low season”), and an average length of stay of 3.7 nights.
Overall, for the year, we forecasted 70K of rental Revenue, which is about $5,000/month, and 20K over the average in the area.
Humming Host is a Superhost on Airbnb, a Premier host on VRBO, and our property at Belcourt just got approved to be featured on Plum Guide, a luxury Online Travel Agency that charges only a 3% fee!