Airbnb in a Hotel/Resort (conflicts with the Hotel)

Kim206
Level 2
Calgary, Canada

Airbnb in a Hotel/Resort (conflicts with the Hotel)

Hi there, hopefully I can explain what I'm looking for well enough to get some awesome advice from you all.

 

We own a unit in a Hotel/Resort.  About 45% of the unit are managed by the Hotel (although they are privately owned) and the remainder are used for the owner's personal use/enjoyent, or rented out through Airbnb; VRBO; others or monthly renters.  

 

The non-hotel rental pool owners have a strained relationship with the Hotel - as of course our guests try to ask the lobby questions or seek help, etc.  I absolutely understand the hotel's position as they have no revenue stake in those units.  In addition, the hotel has for years tried to get more folks in the rental pool of the hotel - but the reality is that there are likely more coming out and utilizing platforms such as Airbnb because of the loss of revenue to the hotel.

 

That's the background, here is the opportunity.  I believe there are is at least 15% of the units being rented on Airbnb & others - there could be more.  We all do our own thing as it relates to meeting guests; cleaning and conceirge; etc.  Some of us live close; others live at a distance, so have different requirements for turn-overs.

 

I recently joined our condo board - and I'm hoping that I could present a financial model that makes sense for the Hotel to manage our turnovers.  I currently pay a smaller company locally to clean; launder and respond to guest concerns (if I'm not able to).  I pay a flat fee per turnover and the company makes a good profit (based on local wages), but I also think I'm getting good value.  Everyone who is doing short term rentals outside the rental pool, also do their own thing - and are either paying someone else, or paying themselves.

 

I'd like to organize the local "short stay" renters and the hotel to provide this service.  It is a win for the hotel, as they can make some revenue on units previously they were making zero on.  They would simply manage the turnovers, and since they already have the staff onsite - the "rental pool" owners actually get some cost savings through economy of scale.  This would also be a benefit to all the non hotel rental pool owners as they would have a consistent, with staff already familiar with the property, etc.

 

My question - and hopefully the above is clear - does anyone have a model similar to this?  Can you share any advice as I try to put together a business model to present to the hotel?

 

Thanks

2 Replies 2
Linda108
Level 10
La Quinta, CA

@Kim206 I have no experience with this, but it occurs to me that an element of the model might be that the hotel becomes a "co-host" for each listing on Air BNB.  Each owner host would have to designate the hotel as a co-host.  Look in the Help Center for how to do this.  Actually there also may be discussion threads on this site related to companies that have actually formed to be co-hosts for Air BNB hosts. 

Thanks Linda - co-hosting might be a solution and I'll look into this, but I'm really trying to figure out the financial model - the "whats in it for them" if you will, so they see this (airbnb rentals) as a way to make money vs. the traditional thinking of a hotel - "I'm losing money."  With platforms such as home sharing/short term rentals (uber; etc.) traditional companies have to rethink their model - rather than trying to get local governments involved to shut down Airbnb's etc.  They would have to agree it is worth their while before they would even consider a co-host!    I'll check into the co-host idea as well!