ÖÖD Hotel in Jõeranna, Estonia, has been listed on Airbnb for a year now. Numbers show that competition among P2P hosts has become pretty fierce, resulting in low profitability. Nevertheless, it is safe to say that the concept and design of the ÖÖD house proves to enhance the productivity of its investment as a €44 000 annual revenue should confirm.
With an average Airbnb rate of €175 EUR, which is three times as high as an average nightly rate of any-sized listing in the capital city Tallinn, ÖÖD with its tiny house (18 m2) concept has enjoyed an overall occupancy rate of 80% while being situated 25 km (a 20-minute car drive) outside the city in the countryside.
ÖÖD business case in Estonia must be a promising example for anybody who wishes to successfully start their hospitality business, be it a hotel, café, restaurant, boutique, office, seminar room, gym or a pop-up store. The ideas are really endless.
“You can start seeing a return on your investment — whether through guests or relaxation — immediately.”
Among some of its visual and therefore obvious perks things that speak for ÖÖD as a great business prospect include the fact that it is easily movable and relocatable. Thus, making it a super flexible form of business as well as leisure.
ÖÖD has been noticed as a nimble small hotel business model by many entrepreneurs from Estonia to Iceland, Ghana and California. While most property owners respond to the competition in the hospitality market by lowering their prices, new ÖÖD hotel owners, for example, expect to charge at least double the price compared to their local markets’ average. The feedback thus far and the design of the house that helps to sell itself really support such endeavours.
It is also possible to start with a humbler idea of one ÖÖD hotel room and develop and grow as you go by adding new modules of different content. A uniform appearance allows to gradually increase the hotel, or your other business idea, according to demand or your financial means.
Looking back, this is what ÖÖD has accomplished in a year:
- €44712 annual revenue
- 70% occupancy rate
- 25 five-star reviews
- 82% of visitors uploading the ÖÖD experience with # to social media
- Superhost status
While scenic Estonia is growing in popularity, it is not currently a top tourist destination. However, just imagine what the numbers could be in your country!