LONE PALM
HOUSE
How we turned a $350K property into $135K of annual revenue.
In September of 2020, our family visited Fredericksburg Texas for the first time. We were enamored by the charm the city exuded, but surprised by the lack of homes that prioritized design, amenities and a premium guest experience. We knew we had identified a market opportunity and immediately found a realtor to find a diamond in the ruff. The problem was that we missed a small window of opportunity and suddenly everyone else was too. With the help of our savvy realtor, we ended up finding an off market property. While it was not at all the type of property we had originally envisioned, we knew that with our vision, we could transform a modest 1200 sq ft ranch into a unique boutique stay that would book out every weekend.
Storytelling is an important part of our process and that is what we started with. The home was modest and it needed a strong statement and vision to stand out amidst growing competition. We accomplished this by choosing to be intentionally different and curating our design vision all around the Lone Palm, a Palm Springs meets Tulum inspired oasis with curated and DIY pieces from all over the world. We wanted guests to feel transported during their stay.
Moreover, we recognized the value of enhancing outdoor spaces not just to expand the living and entertainment area but also because many properties in the area overlooked this feature as a significant amenity. Prioritizing the addition of a pool in the outdoor space, we aimed for quick installation to begin hosting guests as soon as possible. Thus, we chose a prefabricated container pool, which quickly became the focal point of our design strategy and helped us surpass all nearby properties in performance. For this project, we also decided to install a distinctive gas strut window that connects to the outdoor patio bar, enhancing the space and fostering a seamless transition between indoor and outdoor experiences for our guests. And of course, it would not be “The Lone Palm House” without a lone palm, so we planted a Palm!
We opened the home to guests in June of 2022 and immediately started getting bookings. Our summer calendar was booked at 95% occupancy within our 2nd month of opening. The Lone Palm exceeded our expectations with daily revenue management, unparalleled communication with guests and exceptional hospitality. In 2023 we closed our year at $135K gross revenue.
PROJECT SCOPE
Fully gutted kitchen for a more functional layout
Semi-handmade cabinets and hardware
Installed larger gas strut window with outdoor bar
Cement tile backsplash
All new appliances
Updated bathrooms
Painted the interior and exterior
Privacy fence
Expanded the outdoor patio
Added a container pool
Installed a Toja Grid overhang for shade
Front and backyard hardscaping and soft scaping included planting a Texas Sable palm
Additional amenities –
i.e. cruiser bikes for easy travel into town
PROJECT RESULTS
AVERAGE MONTHLY
CASH FLOW
$11K
70+
FIVE STAR REVIEWS
55%
OCCUPANCY
$604
ADR
25%
CASH
ON CASH
RETURN
TOP PERFORMING
3 bedroom,
2 bath short term rental in the area
FIVE-STAR REVIEW
Great place for a getaway! Beautifully designed and decorated house with great amenities. We enjoyed the pool, hot tub and firepit area. The kitchen was fully stocked with everything you need, including coffee from a local coffee shop (for you coffee lovers) and bikes in great condition that you can ride into town. The house itself had a mid-century vibe that made you feel like you were vacationing in Palm Springs, yet a few blocks away is a historic downtown with shops & restaurants; and about 10 miles out are upscale wineries. There are also breweries and distilleries to try. Jennifer was a great host, proactive communication and quick to respond to inquiries. Thank you for the wonderful and relaxing stay!