Civitas Property Solutions, LLC | Application Preview
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General Information
Business Registration Number: 21326547
Location: Phoenix, AZ, United States
Length of Operation: 1.5
Number of Employees:
Annual Gross Income:
Annual Gross Expense:
Open to Loans: YES
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Funding Usage
We want to add an additional 5 short term rental apartments.
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Business Plan
We plan to add a minimum of 10 short term rental units per year, which at the end of 5 years would put us at 54 units. We also plan to grow our RV fleet to at least 20 vehicles. Once we achieve the goal of 54 units and 20 RVs, we project our average monthly revenue to be approximately $174k. We operate on a proven short term rental model that is successfully being used by other STR operators nationwide. Our customer service, marketing, pricing, security, and operations systems are successfully generating an average of $800 positive cash flow, per month, per unit, for our company and for many other companies who are following the model. We believe in providing clean, safe, and affordable short term housing to business travelers and families traveling for leisure and recreation, and we do this better and more professionally than the average STR operator. Phoenix average daily revenue is $149 and average occupancy rate is 71%. Our units are averaging $265 a night and our occupancy rate is 86.9% for the year. This gives us a REVPAR of $230. For March 2021 (March being the highest revenue generating month for the hospitality industry in Phoenix), the state occupancy rate was 68.8%, the average daily rate was $137, and the REVPAR was $94. So it's easy to see that our performance exceeds both the average STR operator and the entire hospitality industry for our state.
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Self Identified Competition
Shell Vacations, VacayAZ, and Bella Palazzo Hospitality Estates seem to be our top competitors, according to the ratings they have on AirDNA. While Shell Vacations matches us with a 4.9 rating, we are consistently getting higher ratings that our other 2 competitors. At the same time we have higher occupancy rates than any of them, VacayAZ being our closest competitor in that area, at 74%. The ADR of VacayAZ and Bella Palazzo are significantly higher than ours, which is likely due to them having more bedrooms per unit than we do, and I do not have access to their REVPAR to get a more definitive comparison of rates vs revenue. The difference with our business than our competitors is that we are consistently achieving higher in all the key performance indicators for the hospitality industry. We believe this is due to several factors: quality of our design, superior responsiveness and customer service, and comprehensive pricing strategies. Aside from those factors, the single factor that separates us from other STR operators is the fact that we have designed our entire operation on who we want to serve. The foundation of our business is providing amazing experiences for our guests. Our customer service team is even called Guest Experience, to constantly reinforce the idea that we are in business to serve our guests. Everything from design decisions to pricing to what kind of coffee we provide is done with the "Who Do We Want to Serve" concept in mind.
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Contact Applicant
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