Frontdesk Sprints Ahead by Taking On Short-Term Rental Castoffs From Stay Alfred
Photo Credit: An image of a New Orleans short-term rental available via Frontdesk, a property management firm that has entered the New Orleans market by acquiring some short-term rentals formerly managed by Stay Alfred. Frontdesk
Skift Take
Stay Alfred's collapse opened up for Frontdesk an opportunity to rise in rental property management with a less-risky model. More interestingly, Frontdesk's new software offering for multifamily communities takes advantage of an opportunity left on the table by Expedia Group, which botched the execution of its Pillow and ApartmentJet acquisitions.
Frontdesk, a property management service and tech vendor, has become the new operator of 55 urban short-term rental units in New Orleans, Indianapolis, and Pittsburgh formerly managed by Stay Alfred, which ceased operations in May.
An asset-light strategy is working for Frontdesk, based in Milwaukee and founded in 2016. This year it saw record revenues and a 20 percent increase of units managed to 580, said Jesse DePinto, co-founder and chief product officer. It has hosted 80,000 stays since May.
Like some other troubled rental brands, Stay Alfred, based in Spokane, Washington, was blindsided by the pandemic, as shutdowns compelled the business to stop accepting guests at its apartments. At the same time, it was weighed down by master-leases that left it partly on the hook to continue paying property developers, such as for a decade-long lease on 140 units in one Nashville tower.
The company, which had raised $62 million in venture capital, was also tripped up by the pandemic'
