D. Alexander , a vertically integrated real estate fund that owns and manages a portfolio of single-family vacation homes, has launched a hospitality brand for short-term vacation rental homes. According to a press release, the outfit will be operated like a boutique hotel to deliver consistent standards, modern smart-home tech and guest service applications.
Its investors include category creators from the residential real estate, short-term rental, and REIT industries.
“Most vacation travelers can recall an instance in which their short-term rental home was inconsistent with what was advertised and their general lodging expectations," said Alex Allison, co-founder and managing partner. "We started D. Alexander out of personal frustration, as consumers are often not getting what was advertised or feel misled.
We’ve also experienced the other side of the equation as an investor and operator who increased investment returns above market standards through professional marketing, ownership, and technology. Simply put, if you don’t own the home, it’s challenging to control the experience and deliver hotel-like amenities.”
Alex Allison (left) and Dustin Abney, formally of dotloop, founded D. Alexander, a vertically integrated real estate fund that owns and manages a portfolio of single-family vacation homes.
The alternative-lodging category is the fastest growing segment of lodging which has been fueled by the online rental marketplaces, B2B marketing and guest services tools and great tech-enabled property management companies.
According to Skift Market Report, alternative travel accommodations accounted for 8.6% of total revenues generated by the entire accommodation sector in 2018. In the United States alone, the sector revenue is expected to grow 30% in 2019 to reach nearly $30 billion-making alternative accommodations up to nearly 11% of total market. While much progress and innovation have occurred, ownership is still highly fragmented which ultimately impacts how consumers experience their vacation rental home.
“We recognized that the investment-output and returns on a single-family vacation home can swing widely based on how the external brand standards and marketing align with today's consumer expectations,” said Dustin Abney, co-founder and managing partner.
"While most single-family home investors look at the buying details such as purchase price, operating expenses and historical rent-roll, they often overlook how to maximize the performance of their investment. This starts with focusing on the consumer demands first – expectations, needs, and delivering that aha-moment.”
D. Alexander said in its press release that its model is setting and defining brand standards through ownership first, which allows for maximum control over the home and brand promise, enabling the company to deliver guest value in ways that traditional short-term vacation rental owners or operators cannot - the comforts of home with the amenities of a boutique hotel. D. Alexander begins taking reservations later this year.