DUBLIN, Ohio--(BUSINESS WIRE)--reAlpha, an AI-powered real estate technology and investment company with a goal to empower everyone to invest in the $1.2 trillion global short-term rental (“STR”) market, is pleased to announce their partnership with RARE Treehouse Resorts, a Vancouver-based company specializing in unique and eco-friendly suspended treehouses, to jointly develop a first-of-its-kind treehouse resort in the United States. reAlpha is in the process of identifying land in California to bring this innovative project to fruition, which will feature up to 10 “Free Spirit Spheres.”
“We’ve predicated our business upon data that shows the most viable short-term rental investments that offer the highest returns while mitigating risks, and we see there is real market share to be gained with experiential vacation rentals,” said Christie Currie, Chief Marketing Officer at reAlpha. “In 2021, the experiential home category experienced explosive growth, prompting Airbnb to overhaul its search function into ‘Airbnb Categories’. Through our partnership with RARE Treehouse Resorts, we’ll be able to bring a never-before-seen vacation rental experience to the U.S. and provide our future syndicate members and investors with a truly unique opportunity in this growing category.”
Per AirDNA, there were 88,000 new short-term rentals added to the overall supply in May 2022, leading to an all-time high in total listings. With new traditional houses and condos injected into the STR economy, creating more supply, the demand has only grown for unique stays, or experiential rentals. Airbnb’s Q2 2022 earnings noted that nights booked for unique homes were up 80 percent compared to pre-pandemic levels. Tiny houses (+173%), barns (+160%), domes (134%) and treehouses (+116%) also saw particularly strong interest.
Currie continued, “These types of rentals require specialized asset management, which makes them ideal for a professional investor, like us, that can execute this strategy at scale. Having a community of properties allows us to streamline our operational efficiencies, and provide lodging to single travelers, or groups. What’s more, we’re finding that the capitalization required for experiential property investments call for less debt, and less interest rate exposure, which keeps us more agile in changing economic conditions.”
RARE Treehouse Resorts’ existing installation in Vancouver Island is the world’s first suspended treehouse resort. Its state-of-the-art “biomimicry” spheres are suspended above the forest floor, with a low environmental impact design that’s built to allow conservation and tourism to exist harmoniously in eco-sensitive locations. The interiors of the spheres are climate-controlled, with surround sound audio, dimmable lights, a kitchenette, love seat and queen bed amidst a fisheye lens window setting. What’s more, these “Free Spirit Spheres” boast an average nightly rate of $350 with an average occupancy rate of nearly 90 percent year-round. Their yearly revenue per unit surpasses $100k and there’s a year-round waitlist. These world-renowned treehouses have been covered by National Geographic, BBC, Business Insider, and more.
“We believe our innovative, suspended resort will be a tremendous success in the United States,” said Ben Vasdaz, Managing Director at RARE Treehouse Resorts. “We’ve consistently boasted occupancy rates greater than 85 percent year-round, with waitlists exceeding 500 guests. The spheres have reached national and international acclaim, all while showing that it’s possible to foster responsible and eco-friendly tourism. We’re thrilled that reAlpha sees that same appeal.”
reAlpha is building a digital real estate investing platform that enables its members to simplify wealth creation opportunities through investments in vacation homes while striving to deliver exceptional guest experiences. reAlpha sources and scores properties from the wholesale market using a proprietary AI-driven algorithm called reAlphaBRAIN. It then predicts the viability of each property for the short-term rental market, as well as the projected long-term value. reAlpha’s business plan contemplates eventually allowing investors to buy equity in specific properties, providing opportunities for short-term passive income generation via Airbnb, as well as equity-driven capital appreciation. reAlpha is based in Dublin, Ohio. For more information, please visit www.realpha.com/.
About Rare Treehouse Resorts:
RARE Treehouse Resorts is the world leader in suspended spherical treehouse resorts.
We custom design, produce, deliver and install visitor-ready remarkable treehouse experiences in the world's most unique locations. The luxury spheres are designed to mimic nature, operate year-round in all seasonal conditions and are built for 10+ years of operations. Our partnership business model also offers non-compete exclusivity zones. Rare’s goal is to save trees, encourage more people to get outside and enjoy nature. Our mission is to be the most recommended accommodation option in the world.
Our vision is for conservation of eco-sensitive locations and tourism to thrive together.