Study: High-performance structures in the hotel regime

Extract from: "Study regarding the performance of different types of real estate structures in the tourism field" document from the "KeyStay LandMarks" program.

Comparison between types of real estate structures according to certain factors:
-The recipe for exclusive facilities (jacuzzi & sauna, etc.) in property or proximity works very well for small structures (studio/1Bdr.apt. 2/4 pers.) with an occupancy rate of up to 100%
– Large and very large units (3-bedroom apartment + living room / villa / cottage) where weekends are reserved as a priority, reduce the degree of occupancy to 8-12 days / month!

Wear over time
– The small units are very easy to maintain, and the absence of large groups or parties decreases damage, serious stains and the degradation of furniture wear over time.
– Large units of max 8 people can generate surprises, problems, damages – and high maintenance, cleaning and repair costs. Periodic renovation investments are necessary, which generate costs and affect the annual returns.

Type of guests:
– Apartment type units 1 bedroom + living room with sofa bed (max 4 people):
#1 – over 50% couples
#2 – 30-35% group of 2 couples
#3 – 15-20% classic families, parents + 1 maximum 2 children

– Large and very large units – 3 bedrooms + living room (8 people) attract 2 types of guests:
#1 – 70-75% or more reserved by groups of friends, mostly young people, who present a risk of parties.
#2 – 25-30% group of 2-3 families! 6 adults, approx. 3 children, where the maximum capacity of 8 people is often reached, a fact that can lead to guest discomfort, risk of parties and events that can affect the flow of business, and the time needed to prepare the location optimally for the next guests.

The small percentage of families that book this type of structures is the result of the #1 type of client (young friend group) that mainly books weekends. There are big differences in the percentages and types of guests between the small structures (4 people) versus the very large ones (8 people), but the structures with 2 bedrooms + living room have the greatest benefits:

– they are very comfortable for a classic family (1 bedroom for parents and another for children), the living room being used for its sole purpose.
– offers privacy for couples who book
– they are not big enough for a group of partygoers, they calibrate the vacation rentals business very well, reducing the risks and increasing the category of quality guests, the degree of occupancy and automatically the efficiency.


Following the performance analysis, a location / building / resort can be profitable for investors if it meets the following specifications:
– The best possible positioning on the map from a tourist/vacation point of view.
– Exclusive facilities. Depending on the area (sea – pool / mountain – outdoor jacuzzi, etc.)
– Buildings with mixed structures – apartment type units / condo / loft / etc. with 1 or 2 bedrooms and a living room with a sofa bed.
– Fully equipped kitchens. They are the strong point of vacation homes versus hotel rooms and attract families.
– Practical compartmentalization. Correct minimum room dimensions. Essential facilities throughout the property (AC, TV, etc)