The Predictive Daily #12224

STR TRENDS
Billions are getting invested into the travel industry  

Why This Matters for STR Owners

The economic impact of short-term rentals (STRs) cannot be overstated, and investors have taken notice. The significant flow of capital into the travel industry highlights the growing recognition of STRs as a key driver of economic growth.

STRs Are Boosting Local Economies

One of the most notable contributions of STRs is their ability to revitalize local economies, particularly in areas struggling to generate new revenue streams. In Tennessee, for example, Airbnb began automatically collecting local occupancy taxes in 2024, resulting in substantial financial benefits. Davidson County collected $34 million, while Sevier County brought in $33 million in occupancy taxes. These figures underscore the transformative impact of STRs on local budgets.

This success has also influenced legislation. The State of Tennessee recently passed laws broadening the definitions of eligible STR properties, enabling more properties to enter the market. These changes demonstrate that STRs are here to stay—not just in top tourist destinations, but across the state.

Professionalism and Competition Are Key

The recent surge of investment into the travel sector reflects an increasing demand for higher-quality experiences. For STR operators, this means rising expectations in areas like customer satisfaction, response time, reviews, and overall professionalism. As booking platforms become more competitive, operators must prioritize these metrics to succeed.

For investors, this represents an opportunity, but for STR owners, it’s a wake-up call. The travel industry is evolving rapidly, and so too must the STR market. Operators who fail to adapt risk being left behind in a space that increasingly resembles traditional hospitality businesses in terms of service and expectations.

A Call to Action for STR Owners

The influx of investment into travel and STRs serves as a powerful reminder: STRs are businesses, and successful operators must continue to innovate and improve. By focusing on professional standards and exceptional guest experiences, STR owners can thrive in this dynamic, competitive market.

COMMUNITY BENEFITS
The Predictive Partners & Opportunities

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THE DAILY DEAL
2829 Ridge Creek Circle, Sevierville, TN 37876

Income generating cabin in Smoky Cove Resort! With an impressive $163,809 in 2023. 10 minutes from the parkway with luxury finishes throughout. You'll be impressed from the moment you step inside, where the living room features a stunning floor-to-ceiling fireplace, soaring cathedral ceilings, a wall of glass windows, and gleaming wood floors. The beautifully designed kitchen, complete with granite countertops, flows seamlessly into the living area, inviting gatherings around the kitchen island or dining table, or enjoy alfresco dining on the back deck with breathtaking mountain views.

Downstairs, a fantastic game room awaits, equipped with a pool table, game table, and a dedicated theater for movie nights. Step outside to unwind in the bubbling hot tub on your private screened-in deck. The Smoky Cove neighborhood offers public water and sewer, high-speed internet, a community pool, and a picnic pavilion. With ample level parking and paved roads leading to the cabin, this property is both accessible and convenient.

• $1,179,000

• 5 Bedrooms, 6 Bathrooms

• Average Daily Rate: $655

• Expected occupancy rate: 59%

• Yearly expected income: $164,000

• Monthly expected expenses: $12,243

• Monthly expected cash flow: $1,424

• Expected cash on cash return: 7.77%