Posted by: union03g | February 19, 2010

Turning a Vintage Walkup on Southport Into a Hotel?

The owners of 3254 N. Southport have an interesting strategy for their vintage condo: A neighborhood vacation home used to generate income. They list their home on VRBO and call it “Chicago Southport Suites.” I’m curious to know who their target market is and whether they have any cash flow (I assume they have 100% equity).

  • Family reunions/bachelor party groups – not enough rooms (only 2 beds)
  • Tourists – why Lakeview when they can stay downtown
  • Suburban couple on a date night – Why are they coming in to go on a date in Lakeview, downtown is more romantic and not so vintage.
  • Corporate housing – There’s more of this inventory in the West Loop closer to the financial district

Who is paying the below rate with all the fees and taxes when there are traditional hotels downtown? Maybe a wealthy 30 something couple who are going to get wasted on July 4th with friends, go to a cubs game and don’t want to crash on the floor of their friends small apartment and want to stay in the neighborhood for the night and have a fear of tall buildings. Or if there’s no hotels available due to a convention. VRBO Listing Here

$159/wknight winter special jan. 3 – apr.15 2010
$159 m-thurs $179 fri. sat and sun.
***NOTE: STAY 4 NTS & GET THE 5TH NT FREE!!!!
*Indoor garage $10/nt *$10pp additional guest fee > 4 persons
*reservation requires 1 nt dep. w/ cc
$85 cleaning fee, 11.9% hotel tax
IN SEASON BASE RATE $249/NT FRI,SAT,SUN $229 M – THURS +++
IN SEASON APR. 16 – JAN. 2

Southport Ave. filled with boutiques, restaurants and much moreSouthport Ave. filled with boutiques, restaurants and much moreSouthport Ave. filled with boutiques, restaurants and much moreSouthport Ave. filled with boutiques, restaurants and much more

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Responses

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