Skift grip
Airbnb is teaming up to develop ersatz hotels filled with reception staff and keyless entry. The area outside of Orlando, known for its periods of intense accommodation demand, seems like a good enough place to test this new concept.
Andrew Sheivachman, Skift
There has been speculation for some time regarding Airbnb develop concepts that operate seamlessly from shared apartments inside traditional residential buildings.
As home sharing has become mainstream, the ability to share rooms or entire units in online marketplaces hassle-free has also become a major benefit for people looking to invest in real estate.
Airbnb will partner with a Miami-based real estate developer Newgard Development Group on a new development of apartment buildings in Kissimmee, Florida, designed to facilitate apartment sharing. Newgard is a established boutique hotel and residential developer in Miami, which has steadily expanded its operations across Florida.
The building, which will be branded “Niido powered by Airbnb”, will allow residents to share their apartment for up to 180 days a year. Tenants who share their accommodation will be registered with Airbnb’s Sustainable Buildings Programwho shares the income they earn with their owner.
While the first building represents a pilot project of the concept, the two companies expect to partner with other apartment complexes in the southeastern United States. Airbnb would not specify when its hybrid of cohabitation space and hotel should open.
Kissimmee is close to Orlando, which is actively seeks to develop new attractions apart from theme parks, it is the best known and has a particularly strong hotel market.
“This partnership shows how owners, developers and Airbnb can work together to create value for everyone and better serve tenants,” said Jaja Jackson, Airbnb‘s Director of Global Multifamily Housing Partnerships, in a statement. “The Newgard team is leading the way and we are delighted to work with them. Together, we’re enabling more hosts to share their home and giving travelers access to more affordable options when they travel.
Hotel or apartment building?
Companies like Pillow have been experimenting with ways to give building owners more control over colocation for some time. The Airbnb concept makes some common-sense concessions to the nature of widespread colocation in an apartment building.
Hosts will have a dedicated app that allows them to manage guest check-in and provide other types of assistance. A designated ‘MasterHost’ at the property will assist guests with check-in and provide other traditional concierge services.
So, instead of hosts asking their guests to sneak past the front desk, this front desk staff member will facilitate the check-in process and take on other responsibilities similar to a hotel front desk. Shared common areas will also be shared between residents and guests, as in a traditional hotel.
The apartments and common areas will be designed in collaboration by the two companies. Cleaning and linen services will also be available in-house, like a hotel.
From a financial point of view, the new brand Niido will pay for the construction of the building and will own it. The Niido brand is targeted for locations where tenants may struggle to pay their monthly rent, according to the companies.
“The partnership also has the potential to help tenants who may be spending disproportionate amounts of their household income on rent,” the press release read. “For example, in metro Miami-Fort Lauderdale, renters spend 53.1% of their household income on rent, according to the Lincoln Property Company’s 2017 U.S. Rent Forecast.”
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