Blue Ridge
Mountain Lodge
We bought this Shenandoah property in 2023, and renovated it in time for the summer of 2024. We added a new kitchen, new bathrooms, accent walls, and opened up the floor plan to provide more natural light to the property. This allowed us to increase our ADR (Average Daily Rate) from $350/night to $447/night and maintain 84% occupancy, outperforming the market by 108%
Key Takeaways
Revenue Performance Analysis
Our Property:
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Total Revenue (May – August): $45,668
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This figure reflects a strong pricing strategy, optimized design, photography, and amenities (game room, sauna, hot tub, fire pit, mural).
Market Average (Similar Properties):
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Total Revenue (May – August): $21,835
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This is the average revenue for similar properties during the same time period, offering a benchmark to compare our property's performance.
Monthly Breakdown
May: $11,014 Revenue - Outperforming the market by +120%
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Market Average Revenue: $5,000 with 44% occupancy
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Performance Advantage: Our property generated 120% more revenue than the market average, driven by a significantly higher occupancy rate (90% vs. 44%).
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Insight: The high occupancy rate in May suggests strong demand, likely driven by a better location, more effective marketing through strategic discounts, and competitive pricing strategies that attracted more guests than the market.
June: $10,629 - Outperforming the market by 77%
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Market Average Revenue: $4,397 with 42% occupancy
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Performance Advantage: Our property generated 77% more revenue than the market average, with a higher occupancy rate (87% vs. 42%).
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Insight: June shows strong outperformance, with higher occupancy and more optimized pricing strategies geared toward vacationers and week long stays, contributing to superior revenue generation.
July: $13,172 - Outperforming the market by 105%
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Market Average Revenue: $6,001 with 56% occupancy
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Performance Advantage: Our property generated 105% more revenue than the market average, despite a lower occupancy rate (71% vs. 56%).
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Insight: The outperformance in revenue suggests that our pricing strategy, including a higher average daily rate (ADR), was highly effective even with lower occupancy. Even when our AC blew up in the middle of the month (talk about stressful), we were able to effectively maneuver around the challenges, and optimize revenue.
August - $10,851 - Outperforming the market by 68%
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Market Average Revenue: $6,437 with 56% occupancy
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Performance Advantage: Our property generated 68% more revenue than the market average, with a significantly higher occupancy rate (87% vs. 56%).
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Insight: The strong revenue performance in August was driven by a high occupancy rate, indicating strong demand and the effectiveness of our midweek discount strategies to promote longer stays and fill in the week days.
Month | Our Property Revenue | Market Average Revenue | Market Average Occupancy | Our Property Occupancy | Revenue Performance vs. Market Average |
|---|---|---|---|---|---|
May | $11,014 | $5,000 | 44% | 90% | 120% higher revenue |
June | $10,629 | $4,397 | 42% | 87% | 77% higher revenue |
July | $13,172 | $6,001 | 56% | 71% | 105% higher revenue |
August | $10,851 | $6,437 | 56% | 87% | 68% higher revenue |
Recap
These results underscore the power of a well-executed revenue management strategy. In our case, effective management of pricing, occupancy, and demand has been the key to maximizing earnings. Through dynamic pricing—which adjusts rates based on length of stay, booking window, and market conditions—we were able to stay competitive while optimizing our property’s revenue potential.
Additionally, our strategic use of amenities (game room, sauna, etc.) and targeted marketing efforts allowed us to attract a steady stream of guests throughout the high-demand months, even as we faced challenges such as an air conditioning failure in July. Our ability to manage pricing, offer discounts, and adjust strategies quickly ensured that we mitigated potential revenue loss and continued to perform above market averages.
