In 2020 Mt. Royal Homes will begin building its own custom built buildings, which will be sold via sale/lease-backs on a long-term triple-net performance lease

ATLANTA, GEORGIA, UNITED STATES, April 10, 2020 /EINPresswire.com/ -- We are at a stage today where it is hard to imagine a lodging landscape without short-term rentals. Often labeled as one of the biggest disruptors in the travel industry, short-term rentals have a long history in many countries, often unregulated and in the form of informal exchanges. Companies like HomeAway and Airbnb have paved the way for the short-term rental market to move online and have given homeowners an easier entry into the business of hosting. Today, we see that short-term rental bookings are mostly made online using an intermediary. In this aspect, the short-term rental category is miles ahead of the hotel industry.

One major player in this industry is Georgia-based Mt. Royal Homes, formerly Mt. Royal Vacations. Mt. Royal Homes offers alternative business accommodation services. The Company provides business travel clients with curated homes. Mt. Royal Homes leases individual units and entire buildings and uses them as its inventory — effectively creating lodging space out of existing residential buildings or, else the company buys existing single and small multifamily assets and then completes a sale/leaseback of the unit with 3rd party investors. It controls the furnishing, cleaning, booking, and customer service for each rental. Its customers are primarily business travelers or people who want the consistency of staying in a hotel with the space and flexibility of a furnished home.

Mt. Royal Homes recently became the darling of the residential real estate and short-term rental investors after it began selling long-term, net-leased housing products to investors, whom are realizing cap rates at eight to 12 percent with no management requirements due to Mt. Royal Homes’ unique sale lease-back structure. The Company is positioned to become a market disruptor and alternative to traditional real estate investing.

Recently, Mt. Royal Homes has begun offering a unique solution for residential real estate investors who are interested in short-term housing investing. Investors have really taken a liking to the company’s 10 year, net-leased corporate housing assets. Once the Company has executed its sale lease-back and added the property to its portfolio, it operates the assets as both short-term and curated extended stay corporate housing with a focus on entertainment, healthcare, and insurance housing.

Royal Homes’ desire to develop an alternative to hotel stay was created out of a necessity to find efficient accomodations for business travellers. Mt. Royal Homes immediately found challenges that already existed within the short-term rental space:

*The hassle of property management for owners
*A cleaning fee, which is common in vacation rentals but not in hotels
*No 24-7 staff available at every building

So the Mt. Royal Homes set out to distinctively differentiate itself from competitors in the market like Airbnb, HomeAway, and VRBO. At a high level, Mt. Royal Homes operates upscale, business travel homes in convenient and trendy locations. The experience and the consistency of a Mt. Royal Homes property is the same from one city to the next. The Company’s core business is in 1st and 2nd teir southern markets.

As mentioned above, a key differentiator for Mt. Royal Homes is the consistency of amenities similar to a hotel but delivered in a short-term rental model. When you’re traveling for work, it’s already stressful, and guests don’t need any additional stress like trying to find a time to coordinate to meet a host in a back alley somewhere to get a key and stay in someone's basement.

Mt. Royal Homes removes the roadblocks for guests who are used to staying in hotels but want to be in that downtown, core location. Guests can be in the heart of a city, walk around to all the attractions, and most importantly, easily get to their business meetings. They know exactly what they’re going to get: the WIFI will work, the home will be professionally cleaned, all the appliances will function, and it will be an incredible experience overall. Mt. Royal Homes prides itself on delivering an amenity-rich, curated neighborhood customer experience.

Mt. Royal Homes sees the short-term rental business model changing drastically in the next several years. There is going to be a huge shift in how people live and travel. The trends of moving downtown are growing, and once guests (and investors alike) see what the value is versus renting a hotel room.

But in the meantime, Mt. Royal Homes has its eyes set for growth this very year. Since its inception, the Company has thus far been bank-rolled by a private family office. However, the Mt. Royal Homes is preparing to issue its series-A private equity offering later this Spring as it continues to build its infrastructure to roll out more aggressively into first and second tier Southern markets in 2020 when it will begin building its own custom built buildings, and once those are finished will be sold to 3rd party investors and leased back on a long-term triple-net performance lease.

Kathrine Cupp
Publicist
+1 847-450-3886
email us here

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