Learn About Aparthotels The Hottest Serviced Accommodation Strategy with Carly Houston
Last updated: 2 Oct 2024
Meet Carly Houston
In this week's episode of Deal Finder's Corner, Guillaume Black, CEO and co-founder of Property Filter, interviewed Carly Houston, an award-winning property investor. Carly has been in the property industry for over 14 years, specialising in social housing, supported accommodation, and more recently, aparthotels. Her experience, especially in converting underperforming properties into successful aparthotels, provides valuable insights into today’s serviced accommodation market.
This article delves into the aparthotel model, blending service accommodation with the hotel industry, a strategy Carly has mastered. If you're looking to convert guest houses, B&Bs, or small hotels into profitable, systemised aparthotels, this article will equip you with the key takeaways from Carly's talk.
Identifying buildings for aparthotel conversion
Carly highlighted the importance of selecting the right building for aparthotel conversions. Many underperforming guest houses, B&Bs, and even small hotels can be converted into aparthotels without the need for significant planning permission. Focusing on C1 use-class buildings (hotel accommodations) allows investors to bypass some planning restrictions, creating more rentable units within the existing space.
"You don’t always need to change the use of a property. Operating within the C1 use class allows you to increase the number of units without extensive planning permission."
Carly’s focus has been on transforming outdated guest houses in prime locations like Brighton, converting them into modern, self-contained units that cater to today's travellers.
Market changes and new opportunities
The serviced accommodation market has evolved dramatically over the last decade, especially with the rise of platforms like Airbnb. Carly points out that while traditional service accommodation catered primarily to corporate clients, the model now encompasses a broader range of guests, including short-term holiday stays. However, upcoming legislation is expected to impact service accommodation, creating a shakeup in the market.
"When changes come, those who adapt will thrive. Legislation will create opportunities for professionals to stay ahead of the curve while others exit the market."
This opens up significant opportunities for those willing to adapt by targeting commercial buildings, which are often overlooked by the broader market.
Building a systemised, high-profit business
Creating a highly systemised aparthotel business is crucial for achieving long-term success. Carly stresses the importance of working on the business, not in it. By leveraging technology and efficient processes, aparthotel owners can streamline operations, minimise day-to-day involvement, and significantly increase profitability.
"We systemise every aspect of the business, from guest communication to cleaning, ensuring that we’re not caught up in daily operations."
A focus on systemisation not only increases profit margins but also allows for scalable business growth, as demonstrated by Carly's conversion of a traditional eight-bedroom B&B into a 12-unit aparthotel without expanding the building’s footprint.
Actionable tips
Research the right location: Carly emphasises the importance of thorough market research before selecting a property. Understanding local demand, competition, and market trends is key to ensuring the success of any aparthotel project.
Increase rentable units without expansion: By repurposing unused spaces within a building, Carly has been able to increase the number of rentable units without extending the property, significantly adding value.
Systemise and automate operations: Implementing the right software and processes from the start can make managing multiple units more efficient, enabling long-term growth and profitability.
Conclusion
Carly Houston’s expertise in aparthotels offers a unique perspective on how to leverage this hybrid model in a shifting market. By focusing on creative finance, adaptive strategies, and systemisation, Carly has successfully transformed underperforming properties into thriving aparthotels. As the serviced accommodation market evolves, this strategy provides a promising way to stay ahead of the curve and maximise profitability.
Watch the full episode with Carly Houston on our YouTube channel to learn more about aparthotels and how you can apply this strategy to your property investments.
