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This question comes from Tomas.
\\nI believe that on a previous podcast you mentioned that there is an expanding opportunity in the market for short stay accomodations. There are folks that are looking for 1-3 month stays in their local markets to fill the gap between moving from one property to another.
\\nDo you think that it is possible to have a small boutique hotel with regular guests and a floor of longer term (1-3 month) guests all under one roof? Or are there simply too many negative issues. If so, would such an arrangement even be desirable from an asset management perspective?
\\nI would love to get your perspective on this.
\\nBest,
\\nTomas
\\nTomas, this is a great question and I love the way you\\u2019re thinking. What you\\u2019re describing is following one of the basic rules of business. That is, you\\u2019re solving a business problem.
\\nThe question is whether the hotel product in question is a suitable solution for the problem you\\u2019re outlining.
\\nThe problem exists in a number of specific areas. In business the more precisely you can speak to your target customer, the better the connection. You have a few distinct problems that can be solved here.
\\nSo the question is what is the right product to meet that needs of that target client.
\\nWhen you say a hotel, I would assert that this would need to be a suite hotel with full kitchen, a large enough work space, and enough breathing room to be a viable location for a few months. There are very few hotels that meet that description. If it\\u2019s an extended stay hotel with high quality beds and high quality amenities, it could work.
\\nIf the hotel guests and the medium term residents are segregated on separate floors, that may be enough to entice medium term guests.
\\nI think that the first reaction from a potential guest at the thought of staying in a hotel room for 6 months would be negative. So it would need to properly positioned.
\\nBut if you can market it as an extended stay residence that happens to be co-located on the same property as a hotel, it could work. It\\u2019s increasingly the trend in hotels to double brand a single hotel property with two different brands within a hotel family.
\\nYou will see a Residence Inn co-located with a Marriott Courtyard on the same property.
\\nAnother key to marketing this to clients would be a word of mouth recommendation from the real estate agent who is brokering the deal, or the builder who is responsible for the delay.
\\nOne of the objections is the perception that a hotel room priced on a nightly basis is going to be too expensive compared with a monthly rental. While the hotel might be willing to discount the nightly rate when renting by the month, the perception is still that the nightly rate is going to be too high.
\\nIn order to satisfy the client that you have the right product, I believe the product will need to be branded and positioned as a monthly, all inclusive, medium term executive rental.
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