- Thread starter Mario1208
- Start date
Abnb hosting been a struggle recently
So, for the heck of it, I decided to check prices on Airbnb's around the area we live (around El Millon/Mirador Sur/Bella Vista area). Depending on whether you owned the unit outright or still paying on it (loan, etc..), based on the prices being charged the unit would need to be rented the majority of the month to make a profit or break even? Then you need to factor in the wear and tear on the unit. If you're just looking to make some extra money while you're not using the unit, is it worth it?
I think a lot of those units are investments, possibly made by Dominicans or others living outside the country, and will eventually be their retirement home. Since everything deteriorates over time, some try to defray their expenses and payments by occasionally renting. I doubt anyone is living on the rental income. As long as they have a primo in the area to let people in and clean, it works. We have stayed in some apartments in Bonao that are like brand new. I was afraid to sit on the sofa. Amazingly, I was able to turn on the TV and walk to the local colmado without the assistance of a concierge.
Yeah, I know, badly phrased. Let me put it this way: I prefer dining in a private setting among family members...
100% correct. The issue with property is that these units are sold initially as part of a dream. A lot of people dream of having a little place in the sun, or having an apartment in Santo Domingo if they're Dominican. And the person selling it does these funky calculations which assume pretty much zero maintenance, crazy high occupancy and hugely overstated rental values year-round. No voids, no breakages (because Airbnb pays for those right?).
And obviously the math doesn't work, so they end up with an empty unit, high bills, and a problem. So they drop the rent just to get things moving, but so does everyone else. So the net effect is just lower revenues all round. And add into the mix that the hotels are desperate, so they too are dropping their rates to rock bottom, below cost, and you've got the mess that we have at the moment. It's a great time to be a guest but a lousy time to be a property owner.
Are you saying all of the luxury hotels in Santo Domingo are dropping their rates?
It's difficult to say to be honest. Certainly there are deals out there which are below cost, everywhere in DR. The larger chain hotels in SD often have corporate deals and group deals which keep them ticking over at this time of year, and quite often these have been booked a long time ago, so in those properties which are keeping their occupancy high you'll not find a lot of discounts as they will sell the last remaining rooms for a conference at really high prices as there's always someone extra who wants to come.
Where I am seeing the super low rates is in new properties, properties which have rebranded, and properties which have had reputational issues and are trying to relaunch. Whala / HM is a very interesting case, they are selling way below cost and selling aggressively. Wyndham seems to be starting to do the same. I think Catalonia is probably about to jump on the bandwagon too - I found a super cheap rate for their AI property in Bavaro last week and I am seeing they have very patchy occupancy in SD. These places don't operate in a vacuum, and a price war at the 3* end of the market will inevitably start to draw down the rates at the higher end. This said, September and October are always horrible. If we see this price-slashing continuing into January, then we do indeed have a problem. Whala / HM are selling very very cheap right up to Christmas (US$ 60 pppn) so let's see.
All the nonsense posted around here, this is a great 60 sec market analysis. I feel I watched you on Squawk Box or Maria Bartiromo Sunday Mornings
I wish...just booked rooms (2) at the Intercontinental Real for 4 nights in early November, family is going for a wedding. It was around $1168.00 for each room. Looked at the Hotel Embajador and that was about $152.00 cheaper, but they went with the Intercontinental.
I used to stay at the Dominican Fiesta when I came to town for work. The executive floors were a great deal. Service was very consistent, so was the quality. Decent gym as well.
I have a bizarre fantasy about M.Bartiromo
As I sit here at the el embajador, I can say business is booming. Several large conventions this week. A very large cosmetic and model convention which caused me to suck in my gut around the pool.
Stayed there when it was the Lowes, circa 1979. Nice but too out of the way for me.
Best pool in SD in my opinion. I actually met Mr AE at that pool in 1975. It used to have several diving boards (he was quite the diver/swimmer/scuba guy then)
Pool is still fabulous. No diving boards. The grounds and gardens are artwork.