The Rich Somers Report He Used to Work for Airbnb, Now He’s Developing Boutique Hotels ⎮ Mike Demson E395
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Sep 6, 2025 Mike Demson, a former Airbnb employee and now a boutique hotel developer, shares his journey from corporate life to creating unique hospitality experiences in Northern California. He discusses why creating community is vital for profitability and that understanding traveler desires can reveal hidden opportunities for investors. Mike also highlights the shift in market dynamics favoring boutique hotels over traditional short-term rentals, and offers insights into financing, property appreciation strategies, and the current trends reshaping the hospitality landscape.
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From Airbnb To Boutique Hotel Projects
- Mike Demson closed a site at 400 Bay Street to build a 16-key boutique hotel with views of the Golden Gate and Alcatraz.
- He also bought the Stonehouse and converted a former residential treatment facility into a 14-key hotel with plans for 67 additional rooms under IHG's Vignette brand.
Undervalued Hotels Offer Big Upside
- Many small, family-run boutique hotels are underperforming due to outdated operations and lack of tech.
- Renovation, revenue management, and AI can close the performance gap and force significant appreciation.
Value Hotels By Income, Not Comps
- Value boutique hotels by income (NOI ÷ cap rate) rather than comps like single-family homes.
- Use tech and staff-light models to increase NOI and therefore property value.