Imagining and Guessing can be dangerous
A critical aspect of understanding one’s operations is to perform a careful postmortem of the full year. With this client it is no different. We helped the client compile and understand what the data is truly showing. The hopes, further align their 2025 vision with the realities of their performance.
How did we do it? We first got all the historical data for all reservations ocmpleted or otherwise. Then we proceeded to compare and contrast. The 2024 performance while record breaking, did it show what the client was expecting it would?
The overall target of this STR operations is to generate a healthy 12,000 USD per month per room.
While 2024 was challenging, tornados, even fire incidents, the overall average revenue per room was at 97% of the set target.
2023 Comparison
$194,901.72 was the total revenue for 2023, across 18 listings, and the same 4 properties, however with 2 less listings who were coming online towards the end of that calendar year.
When looking at the performance it is easy to see that the strategy of increasing revenue by increasing inventory worked okay.
$38,341.39 revenue increase, a 19% increase in comparison to the previous year.
Market Comparison
Economical factors played an important role in the less than stellar performance as it relates to profitably per available night. Market analysis performed with the help of PriceLabs*, showed Cleveland between 2023 and 2024 experienced a substantial increase in inventory, and unfortunately a decrease in demand. The ability of calling its own shots by going after specific guest avatars will be very important for staying competitive in the Cleveland Short Term Rental market.