This is the Moose and Maple Lodge, our 14-unit boutique hotel in South Lake Tahoe, California. This property is a limited-service and limited-amenity property. It has a pool, outdoor bar, Jacuzzi, full kitchens, and kitchenettes in select rooms. The success of this property boosted our real estate portfolio which earned us a whopping million dollars in 2022. This property has helped lift our beach properties which tend to experience slower business during the winter months. It is located in the state line area of South Lake Tahoe and enjoys year-round success due to its proximity to the lake a few blocks away. The mountains in the background add to its allure, and you can even see the gondola from the property. It’s definitely a great location that offers a wonderful experience for guests.
Here’s more about the property and why it does so well.
This property has two stories. The bottom level consists of our studio units. There are two 1-bedroom units and an office located at the back. But, the office is not for check-ins, but rather a workspace for our employees. Even though the bottom level is mostly for single occupancy, our 1-bedroom unit has a pullout couch that can also accommodate couples, single travelers, or small groups of two to three people. These rooms are in high demand, with shorter booking lead times and higher occupancy rates. Upstairs, we have four 2-bedroom 2-bath units that include a full living room and kitchen. These units generate high ADR income and are our most profitable rental option.
The property is in high demand, particularly among traveling groups and families, who appreciate its close proximity to the Heavenly Ski Resort. In fact, guests can put on their ski boots and walk over to the gondola, which is only about two blocks away. Families and groups love our units, and we have a unit mix that caters to their needs. During summer, we offer plenty of parking. And we have a pool at the back of the property, which we use as a snow area during winter to clear the snow from the parking lot. Overall, the property’s success can be attributed to its ideal unit mix and prime location.
When evaluating commercial or multi-unit properties, it’s crucial to consider the unit mix since it plays a vital role in attracting a specific demographic or group of people to your place. Having a diverse mix of units can enhance your appeal to various groups, increase your occupancy rates, and provide you with more options to adjust your rates based on seasonality and other factors. Thus, it’s essential to stand out and cater to different groups to maximize your profits.
To increase our property’s visibility, we have given it a unique name, the Moose and Maple Lodge. And it helps the property stand out in people’s minds. We have installed a large moose statue and attractive signage outside the lodge. The signage displays the booking platforms we use, including Airbnb and VRBO, as well as our direct booking website. When people search for our property using its unique name, they can easily find and book through our website. We have also included information about the Moose and Maple Lodge in all of our guest messaging and in the pamphlets available in our units. All of these efforts help drive more traffic to our property.
The Moose and Maple Lodge has established itself as a popular destination for return guests, who visit every ski season and summer for the lake. With a high percentage of direct bookings (currently over 15% and increasing), we have focused on marketing to our guests through email and social media to build our brand. One of the lodge’s standout features is that every unit has a fully functional kitchen, even the studios which have a 20-inch stove with four burners, an oven, microwave, and fridge. This makes the lodge attractive to guests who prefer to cook their own meals and enjoy the comforts of home. Extended stays are common, with guests staying for a week or two at a time. This feature has set us apart from other lodges in the area that do not offer kitchens in their rooms. We have even added kitchens to our Florida hotels where none existed before, to further differentiate ourselves from competitors. This strategy has proven successful, with the Moose and Maple Lodge staying booked throughout the high season.
To improve your property’s competitiveness, it’s important to assess your competition and identify the amenities that are in demand by your guests. When buying a distressed property, renovations can be made to add these amenities, as we did with our Florida hotels. One of the reasons why our Moose and Maple Lodge performs well is due to the high average daily rates (ADRs) of our two-bedroom units on the top floor. During the low season, the ADR is in the mid-hundreds, while on the highest weekends of the year (such as Christmas, New Year’s, and Fourth of July), it can reach up to $750 to $850. On average, the ADR falls between $400 and $500, making these units highly profitable.
And that’s because these all started out as single unit. The two-bedroom units on the top floor were created by combining three single units. By opening up the wall between the two doors, one bedroom leads to another bedroom through the living room and kitchen. This configuration allows for a more spacious and luxurious layout, with the master bedroom featuring a full master bathroom complete with a soaking Jacuzzi tub and a stand-up shower. Combining units like this enables us to charge a higher nightly rate than two separate units would allow. Additionally, this unit mix attracts a good balance of guests, increasing profitability.
Similar to our other multi-unit properties, we use Wi-Fi enabled Smart Locks for our boutique hotels. We specifically use Schlage codes, which are connected to Wi-Fi, to send guests their reservation code. This automated process reduces confusion and allows guests to easily check in with text message reminders leading up to their stay. By implementing these Smart Locks, we minimize the need for the onsite presence of staff and provide a seamless check-in process for our guests.
This is one of our two hotels in this market, which allows us to hire and build up a staff to manage it effectively. We have cleaners and assistant property managers at one location, and property managers and other cleaners at the other location. This way, we can turn all 34 units, especially on high-turnover days like Thursdays and Sundays. This ensures that we can aggressively price our units and maximize occupancy, so we never have to block a unit due to staff shortage. Despite unforeseen circumstances like snowstorms, we can manage the property effectively because we have the necessary staff in place. As a funny side note, we almost bought the property behind us, which is located across the street from Mr. Maple Lodge.
It’s a pretty big purchase price. However, it offers a range of amenities that make it a desirable investment. At the top, you can see a deck and patio area with outdoor furniture, a fire pit, and a grill. At the back, there’s a pool with a bar, more outdoor seating, Jacuzzi tubs, stand-up tile glass showers, and ample outdoor space. Additionally, we are pet-friendly, which attracts a lot of people with dogs to South Lake Tahoe. By offering these amenities, we can capture a lot of demand, and the more amenities you list, the more visibility your property will have in search results. This property ticks all the right boxes, making it an excellent investment.
And this is what really brings people to the area. Lake Tahoe is the main attraction. Our property is located just four blocks from the lake, and our guests have access to this beach. The location is perfect for visitors to come in both summer and winter and enjoy the beach or go skiing at Heavenly. When looking to buy a property, it’s important to consider its proximity to nearby attractions and the amenities it offers. Once you have identified those, make sure to market them well in your listing.
So here we are on the banks of Lake Tahoe and I’ve never been on a beach on top of a foot of snow but you know, new experience and our property is literally four blocks behind me over here and guests that stay at our property have access to this, this beach right here. So it’s a really good location all around for them to come in the summer in the winter, walk to the beach to walk to the beach here or walk to heavenly just finally look.
I get to read look at your properties you want to buy you want to look at your proximity to those amenities and what you have the offer and then market that in the listing.
I hope that these tips about the property, the transparency about the numbers, and how it works and all that is helpful for you guys.
