Spotlight On: Nick Falcone, Managing Principal, NDM Hospitality & Rentyl Resorts

Spotlight On: Nick Falcone, Managing Principal, NDM Hospitality & Rentyl Resorts

2022-07-15T06:04:13-04:00January 21st, 2022|Orlando, Real Estate, Spotlight On|

NDM Hospitality Nick Falcone2 min read January 2022NDM Hospitality & Rentyl Resorts has been capitalizing on a new trend in real estate, built-to-rent short term resort rentals. Managing Principal Nick Falcone spoke with Invest: about his strategy to diversify and strategize partnerships to focus on technology and services that bring consumers and partners together in a circle that raises the asset performance for partners, increases value of the brand and the loyalty of the customer.

How did your goals for 2021 play out and what were the challenges you overcame?

On the books, you always want to try to cross over the year with as much occupancy and revenue as possible. Typically, you see bookings done 12 months or more in advance but COVID took that confidence away. As a result, we didn’t have consistent trends we could plan on to help us to drive for success. Our No. 1 goal was to overcome that challenge and identify ways to quickly understand the new market trends. No. 2 was driving marketing for Rentyl Resorts that would allow us to grow the brand across the world. We started our national and international expansion across the world. We started the year with two markets, Orlando and the Keys. Since then, we have been able to expand in a huge way. We are now in 12 markets and will close the year going into three others.

How are you strengthening your relationship with your partners?

The foundation for strengthening our relationship with our partners is our loyalty program, which is multi-industry and expands across hospitality, real estate and retail shopping. When a consumer buys a house or rents an apartment, they get rewarded with loyalty points for the transaction. They can then use these points on vacations, eat at a local restaurant, go shopping or visit an attraction. Similarly, you can complete those daily transactions, save up points and put them toward a tropical stay or use them as a down payment on a house. It’s a really unique program and first of its kind. 

Consumers choose resorts that let them connect to and support the local ecosystem. They want their experience to expand beyond the resort. This loyalty program gives you the opportunity to go to local restaurants and support local businesses.

Our type of business includes a plethora of verticals, such as apartment management, technology development, hospitality with vacation homes and resorts. Our real estate development partners build retail centers with vendors, attractions and entertainment, and our loyalty program complements and enhances our partnerships by tying various business types together into one loyalty ecosystem. It connects our developers to our consumers who can now use those points at their centers and support our development partner. For example, In Orlando there’s no upfront cost to our partners to utilize the system and they have direct access to over 2 million visitors with millions of dollars in points to spend at their venues.

Why is built-to-rent short term resort rentals an ideal asset class for partnerships?

Built-to-rent has been one of the most invested in real estate vehicles of the last decade because of the optionality the product provides. You have the opportunity to build and rent long term, but you can also sell the asset if the market dictates that this will enhance return on investment. What we have done is we’ve taken that to another level in both optionality and performance. Our built-for-rent short term resort rentals have been able to attract some of the biggest brands in the world. This wasn’t possible before because there wasn’t consistency of product, professional organizations providing confidence to partners, the technology and distribution platform to increase performance, and the overall turn key knowledge of real estate, hospitality, technology, & operations. The combination of these factors along with brand association boosts the sales philosophy and the price per square foot of these homes which increases the value of the asset.  

Rentyl Resorts business model is to stay asset light and focus on technology. Having development partners allows us to stay asset-light: They do the heavy lifting by owning the asset and we’re able to provide them with the technology and the services that enhance their asset value. This allows us to stay nimble and do more deals around the world and use our capital in an effective way, which completes the circle.

How essential was it to start your operations in Orlando?

As one of the Top 10 travel destinations in the country, Orlando was the perfect destination to roll out and test our platform. We knew the travel demand would be here to roll out the new products.The competitive landscape of the destination allowed us to have numerous performance benchmarks to gain insights on how our platform enhances the product. When you look at our performance compared to the traditional hotel for example, we are outperforming by 200% to 400%. With vacation homes, we’re seeing up to a 500% increase in performance compared to the traditional vacation home.  

Additionally, Orlando is a very hot real estate market and it’s a market where people like to invest in vacation homes. Our development partner in Orlando built five resorts totaling over 2,000 houses and over 10,000 rentable rooms. This massive set of inventory which has an asset value of over $2 billion was our launching point to be able to show other developers how our platform would be able to create major lift in value. The results from these first five resorts were staggering and one of the main reasons why we’ve been able to expand over the last six months to 10 new markets containing 25+ new resorts.

For more information, visit: 

https://ndmhospitality.com/ 

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