Selling a Micro-Hotel for $1M per Key - Isaac French - Founder of Experiential Hospitality
Mar 6, 2024
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Isaac French talks about crafting micro-resorts, selling Live Oak Lake for $1M per key, and founding Experiential Hospitality. Topics include building Live Oak Lake, naivety as an advantage, and future plans in the hospitality business.
Creating authentic guest experiences through personalized moments and revenue optimization at Live Oak Lake.
Successfully blending architecture with nature at landscape hotels for immersive experiences.
Achieving financial success and scalability through unconventional operations and systemization at Live Oak Lake.
Deep dives
Building a Dream Office - The Nook
Isaac French shares his inspiration behind building his dream office called 'The Nook,' located in Texas, featuring a modern Scandinavian design fused with Texas Hill Country style. The space includes an art studio, a sleeping loft, and an office, reflecting French's meticulous attention to detail and passion for design.
Crafting Authentic Experiences
French emphasizes the importance of creating authentic and personalized experiences for guests at Live Oak Lake. By focusing on user-generated content, unique Instagramable moments, and price optimization through revenue management, Live Oak Lake achieved a remarkable 95% occupancy rate with prices ranging from $400 to over $2,000 per night, showcasing the success of this approach.
Blending Architectural Design with Landscape
French discusses the concept of landscape hotels, where units are embedded in nature to create immersive experiences. Through Live Oak Lake's design, blending Scandinavian minimalist elements with Texas limestone, black exteriors, and natural finishes, French successfully harmonized architecture with the landscape, immersing guests in a truly unique and picturesque setting.
Financial Success and System Efficiency
Despite initial doubts from skeptics, Live Oak Lake realized impressive financial success, grossing $960,000 in the first year with a net of $520,000. By achieving high margins through price optimization, a focus on efficiency, and systemization with smart home technology and automated operations, French's unconventional approach led to the property's ultimate sale for $7 million, demonstrating the scalability and profitability of his venture.
Efficient Operations and Successful Sale of Live Oak Lake
The podcast discusses the efficient operations at Live Oak Lake, where subcontractors complete cleaning tasks on-site using the laundry facilities, ensuring high-quality cleaning for Airbnb properties. Additionally, a manager oversees guest experiences such as romance packages, highlighting the high-margin offerings. The podcast also details the successful sale of Live Oak Lake, emphasizing the seller's approach of remaining unattached to material assets and considering the right price and timing for the sale, leading to a lucrative deal.
Lessons and Future Strategies in Hospitality
The episode explores the host's reflections on hospitality strategies, emphasizing the power of storytelling in property development and guest experiences. The importance of direct bookings and brand-building is highlighted, with examples of influencer collaborations driving substantial impact. The significance of landscaping in hospitality investments and the potential of agritourism ventures, influenced by experiences like Babylon Store, are also discussed, showcasing a forward-thinking approach to hospitality ventures.
Isaac French crafts micro-resorts & boutique hotels. He designed, built, and sold the massively popular Live Oak Lake in Waco, Texas for $1M per key. He also founded Experiential Hospitality, an exclusive course and community for the next generation of hospitality trailblazers.
