SALES UPDATE
As we continue to move through the year, sales for 2023 remain consistent but at a slower pace than the past 2+ years. Market trends are proving the Covid Surge is now behind us. We are seeing lower demand and elevated supply leading to a much shorter booking windows than has been customary in the preceding years, taking us back to similar trends of those in 2018/2019.
Using recent data provided by the Chamber of Commerce, Beach Properties continues to maintain higher than average numbers in both occupancy and ADR (average daily rates).
Occupancy Beach Market
March 85.8% 73%
April 71.1% 58%
May 58.9% 41%
June 65.5% 50%
July 44.5% 39%
August 19.1% 18%
ADR Beach Market
March $312 $269
April $505 $457
May $562 $534
June $891 $893
July $1100 $1053
August $955 $923
For those owners who are new to the short-term rental market, and as a refresher for those who have been rental property owners with us for many years, we understand these current trends may be causing some concern. Year-round occupancy rates are not predicted to be as high as the previous years, however, data does support a very strong peak season for Hilton Head Island. Our peak season begins mid-June through mid-August with predicted occupancy rates into the mid to upper 90s. The lower occupancy will be felt in the spring (April-May) and late fall.
Using historical data, and current trends, the island should expect to see the following occupancy levels:
80-85% for first two weeks in June
90-100% from mid-June thorough July (traditional peak season)
80-85% for first two weeks in August
65-75% for the end of August (schools are back in session)
50-70% for September/October, with slightly higher occupancy for Labor Day
To maintain our organic rankings, ensuring our marketing efforts are targeting interested guests above our competition, Beach Properties has increased our marketing spend by 10% over our 2023 budgeted numbers. Using traditional third-party sites, such as VRBO & AirBNB, we also continue to grow our partnership with Marriott Bonvoy and American Snowbird as well as newer platforms such as GuestSmiles.
As an owner, a couple of key points to maybe keep in mind:
1) release any owner dates prior to 90 days of arrival to give us time to properly market the dates.
2) review any restrictions you have in place for your property (i.e. not allowing short stays, pricing restrictions, etc)
3) offering an added amenity to set your property apart from the competition (i.e. tennis, pet friendly, etc).
We truly appreciate your continued confidence in Beach Properties as we continue to strive for a successful 2023!