Higher Gains For High-End Properties
The more discerning traveller can provide luxury property owners with lucrative earnings, but what exactly is ‘luxury’ and what’s the best way to capitalise? Eric Hammond explains.
24 October 2023
Luxury properties offer comfort and elegance, with a considerable price tag. While “luxury” is subjective, a high-end property typically features upmarket decor and upscale amenities. These include spacious outdoor entertainment areas, landscaped gardens, swimming pools, and sound systems.
As opposed to large hotels and resorts, which host hundreds of guests, short-term rentals can offer a home away from home with high-end creature comforts; a huge draw for travellers with larger pockets.
At The Stay Hub our average daily rate (ADR) across all property types in the last 12 months has sat at $282*. In contrast, top-end luxury properties can command rates exceeding $5,000 a night. The key to success is focusing on the overall yield and delivering a lavish guest experience rather than trying to achieve maximum occupancy.
While top-tier pricing excludes some people, under-selling your property can give potential guests the wrong perception about the quality of your short-term rental. Finding the sweet spot for daily rates and ensuring this matches the expectations of your target audience is crucial.
With summer fast approaching now is the time to capitalise on peak season rates, especially for luxury properties. In Auckland, if you own a high-end rental with stunning views, your property already has added value. Views over the harbour, beach, or forested areas are particularly popular.
To maximise rates, luxury owners should consider relaxation and entertainment features such as hot tubs, spa baths, expansive decks, barbecues, sun loungers, and outdoor heaters.
In cooler seasons you can’t go wrong with underfloor heating and heated towel rails. Wine storage in the kitchen and smart appliances are also popular for upmarket guests. If you want to start a short-stay on a high, consider including a gift pack. Imagination is your only limitation: think champagne, decadent chocolates and other treats.
For luxury apartments, state-of-the-art facilities such as swimming pools, spas, gyms and saunas will always command premium rates. Parking, which can cost $30-$50 a day in Auckland’s CBD, is particularly attractive to anyone seeking city-centre accommodation.
Some of The Stay Hub’s best-performing luxury apartments are along Auckland’s Viaduct, as well as CBD penthouses with sweeping views. Other prime locations for luxury properties include city fringe suburbs like Westmere, Ponsonby, Herne Bay and Parnell, while seaside locations drive higher ADRs when summer arrives.
When it comes to marketing luxury short-stays, while listing breadth and maximising reach is important, being featured on platforms that target luxury travellers is vital. Upper-class travellers tend to favour more exclusive, niche travel providers who specialise in luxury accommodation, such as Homes & Villas by Marriott International. Platforms like this have strict requirements around quality and, unlike Airbnb, rental owners cannot simply join the website and self-list. To uphold the high standards expected by their audience, platforms like Homes & Villas will only partner with management companies that pertain to their quality service standards
The Stay Hub was the first property management partner in New Zealand for Homes & Villas. Our partnership is built on mutual brand trust and we are proud to have exacting standards that offer five-star guest experience.
Marriott’s expertly curated platform features thousands of premium and luxury short-term rentals, reaching more than 157 million global Marriott Bonvoy® members, including over 350,000 Kiwi travellers. Upmarket properties within The Stay Hub’s portfolio are featured on this exclusive website, reaping the benefits of their wealthy clientele where price is not a barrier for a premium experience.
Although short-term rentals are mostly “self-service”, a luxury guest expects only the highest standards for their accommodation and overall experience. This can be a full-time job if you want to maximise your returns and get the most out of your investment.
A professional property management company can increase your rental income and provide a winning guest experience. For upmarket homeowners, joining a management service will also ensure your property matches the needs of the luxury travel market. If you are interested in short-term renting, The Stay Hub can provide the knowledge needed to make the best decision for your property and personal circumstances. ν
*Data taken from KeyData for the period beginning 01/09/2022 until 30/09/2023.
The Stay Hub offers a full range of Airbnb and short-term rental property management services, covering everything from extensive global marketing to hands-on revenue management, guest vetting, cleaning after each stay, and plenty more. We have a technological and data-led approach, with owner and guest experience at the heart of our operations. Visit www.thestayhub.co.nz.