The name of the game with flexible stays? Nailing down an effective strategy so that you achieve the best revenue possible out of your units.
Part of this strategy should include the type of units to be utilized for short to mid-term stays. This will vary depending on the location of your development, local attractions, guest demand, and competitors.
But as a high-level summary, is it better for multifamily and student housing to use studios or ensuites?
Here’s a quick graph for Q1 2022, showing you the average gross revenue for studios and ensuites amongst Staykeepers’ clients:
As you can see, studios performed significantly better for revenue than ensuites. In March alone, studios generated an average of 140% more revenue per unit than ensuites.
This is due to the ADR (Average Daily Rate) of the unit, essentially the cost per night for guests. Here’s another graph comparing the ADR for studios and ensuites during this time:
These stats aren’t surprising to us, with people not wanting to share amenities with other guests.
Now, this doesn’t mean that ensuites won’t provide revenue as part of a flexible stays strategy. As you can see it’s quite the opposite! It’s just worth considering when crafting a strategy and when building new developments.
As Sarah Canning of The Property Marketing Strategists discusses below, there’s a lot to consider in regards to flexible stays and the viability of such a program in existing buildings: