In the ever-competitive world of vacation rentals, design is more than just aesthetics—it’s a strategic investment that can significantly impact your bookings, reviews, and revenue. A well-executed design refresh can transform a property, making it stand out in a crowded market and attract potential guests. Thoughtful design ensures that your space is both visually appealing and functionally sound, meeting the practical needs of guests and enhancing their overall experience. This attention to detail not only leads to better reviews and repeat bookings but also justifies higher nightly rates, boosting your average daily rate (ADR) and overall revenue. At GoodNight Stay, we’ve seen firsthand how a well-executed design refresh can deliver an average increase of 25% in ROI, create lasting emotional connections with guests, and foster brand loyalty. Let’s explore some compelling success stories that highlight the power of design in elevating a property’s performance.
Success Story 1: A Dramatic Turnaround in Nashville
One of our standout transformations is Property 1, where a targeted design refresh resulted in remarkable financial gains. Prior to the update, the unit achieved an occupancy rate (OCC) of 40% with an average daily rate (ADR) of approximately $400. Following the refresh, the occupancy rate surged to 52%, and the ADR climbed to be approximately $600. This impressive improvement led to a year-over-year rental income growth of 106%.
The key to this success was a thoughtfully implemented design that catered specifically to the demands of the Nashville short-term rental market. This refresh reflected an understanding about what would appeal to the target audience, and the design delivered resonated with the audience, resulting in an immediate and substantial performance boost.
The most impressive design refresh was the transformation of the outdoor patio, which effectively aligned the space with the bachelorette theme of the entire property. Through the incorporation of eye-catching design elements, thoughtful seating arrangements, and a commitment to maintaining a consistent color scheme, the new patio is an extension of the property’s overall ambiance. This transformation contributes to the property’s success by providing guests with an unforgettable and immersive bachelorette getaway experience, where every detail is thoughtfully curated for their enjoyment.
Success Story 2: Consistent Gains with a Moderate Investment
Not every design refresh requires a six-figure investment to yield positive results. Property 2 in Scottsdale underwent a budget-friendly refresh, but still has seen substantial returns. The key was to identify items and spaces that, when updated, could change the overall look of the home, without replacing the costly items that typically contribute to a higher redesign quote. The property has achieved a significant increase in rental income, proportional to the investment made. This success underscores that even moderate investments in design can lead to noteworthy improvements in performance. Not ready for a big blow-out of a refresh? Then a moderate redesign with small tweaks—changing the decorative cushions or frames, updating coffee tables and other small furniture items to be more trendy, refreshing a specific section of the home to be a statement piece or photo-op for the guests, adding unique amenities—can be the first step to improving your property to increase its performance as a vacation rental.
Something we cannot stress enough is understanding the clientele: who is staying at your property? Majority of guests staying at vacation rentals are those traveling for a vacation or special occasion, meaning they are groups. While some groups can be very tight and close, some groups may want privacy among the individuals. Therefore ensuring there is plenty of amenities and space for everyone is crucial. An excellent example of this is the install of the below multi-vanity station at Property 2. What was once an empty wall, is now a 4-mirrored space that is both aesthetically pleasing, and functional, without guests having to crowd to the bathroom to get ready for their day.
Success Story 3: Doubling Income with a Bold Investment
Property 3 showcases the impact of a substantial investment in design. The client made a bold decision to invest six-figures in a major design refresh, despite initial uncertainties about the return on investment. The results have been nothing short of spectacular. As of July, 2024, the property has generated an amount surpassing the investment in gross income, effectively doubling its income compared to the previous year.
This success story illustrates the importance of strategic investments in design. Even with a delayed start, the property quickly gained traction and is on track to achieve a full ROI within two years. This demonstrates that a well-planned and executed design refresh can significantly enhance a property’s appeal and profitability.
The key to this design refresh is to understand the needs and lifestyle of the guests staying in a property at this scale. With a 5,000+ sq. ft. space, the design team’s vision was to construct a space that could accommodate a lot of people, while ensuring everyone had enough space without being crowded. To make this a reality, the dining table shown in the picture below was moved to a more intimate space, while this space was transformed into a second living area.
Success Story 4: Maximizing Space for Maximum ROI
In Property 4, our design team faced the challenge of maximizing the use of space to increase guest capacity and, consequently, the rental income. One of the bedrooms was designed to accommodate six beds, a strategic choice aimed at making full use of the available space. This decision was crafted by our experience furnishing other homes within the same compound and offer the same floorplan.
By increasing the number of guests the property can host, we were able to justify a higher ADR, which directly led to increased revenue for the homeowner. This approach demonstrates how thoughtful design decisions, tailored to the specific needs and layout of a property, can significantly enhance its financial performance.
The GoodNight Stay Advantage
At GoodNight Stay, we understand that design is more than just decor—it’s a crucial element that can make or break your vacation rental’s success. Today’s guests no longer want an average home; they can get that at their grandma’s or uncle’s place. They seek something unique, something that stands out, and, more importantly, something worth capturing and sharing. That’s why our in-house design team is dedicated to creating spaces that are not only visually stunning but also enhance the guest experience and maximize rental income. With a proven track record in short-term rental designs, our team transforms ordinary spaces into extraordinary, Instagram-worthy experiences that guests will remember and rave about.
We work closely with property owners to understand their vision and market demands, ensuring that each design refresh is tailored to achieve the best possible results. Whether it’s a niche approach for a specific market or a bold, comprehensive overhaul, our team has the expertise and creativity to deliver outstanding outcomes.
The success stories of the four different properties illustrate the transformative power of a well-executed design refresh. By investing in thoughtful, strategic design changes, property owners can significantly enhance their vacation rentals’ appeal and financial performance. At GoodNight Stay, we are proud to offer expert design services that help our clients achieve their goals and elevate their properties to new heights.
Ready to see how a design refresh can transform your vacation rental? Schedule a consultation with GoodNight Stay’s in-house design team today and let us help you create a space that captivates guests and maximizes your rental income.
