Only the largest and most sophisticated players in Houston furnished apartment industry can thrive. That is the prognosis for the coming years and was presented on Skift Short-Term Rental Summit in New York City.
The reason we like the business is because it’s hard, providing furnished apartments in Houston Texas takes technology. It takes knowledge. exactly like the texas medical center does.
Each company had many competitors, including “lots of copycats,” and amateurs some of which were larger than it in key locations. But even when Furnished apartments Houston medical center was just getting started, it had one major advantage over the others.
What happened was the CEO and the team were so good at technology, data science, and marketing that they built a competitive moat. Even other competitors which was in business 10 or 15 years ahead of them, is struggling more with Furnished apartments Houston Medical center today than they were when Furnished apartments Houston Medical center was small. Furnished apartments Houston Medical center got very good with things that were tough to duplicate.
The trend is investing in other companies that have technological and leadership advantages.
One, called F.A.D, lists upscale furnished lodging for shorter stays in Dallas Texas, while the other, Pleasant Stay corporate housing, rents corporate-style units for 30 days or longer. It is in 2 markets, according to its website.
Tosi said in the summit,
“The best STRs are technology-driven businesses,”. “You have to be good at hospitality but you also have to focus on the technology. That’s the part that is not replicable by single-owner landlords or small groups of landlords. I see these business plans of people saying ‘We’re going to do STR (short-term rental), and we’re going to list it on whatever,’ That’s not a sustainable model with a couple buildings.”
At the same time, he reminded attendees that short-term rentals are also a real-estate play and need to be properly evaluated. Tosi was chief financial officer at Blackstone Group from 2008 to 2015, a major player in commercial and residential real estate.
“This is a real estate business sitting next to a technology business, and you have to be good at both,” he said. “We underwrite buildings at Sonder like we were underwriting investments at Blackstone. … We look at almost 350,000 units a year. We can tell you where they are, who is most likely to book them, where that person came from, what the channel is, what they they will pay, when they will leave. It is incredibly hard to do, and I think it’s sustainable.”