Strategic Investment in Larger Properties – The Airbnb Blue Ocean Strategy

HOLLYWOOD, FL, UNITED STATES, April 9, 2025 /EINPresswire.com/ -- In the competitive world of short-term rental (STR) investments, finding untapped opportunities is essential for long-term success. Jacobo Hernandez and his team at FreedomVest have perfected a data-driven approach, leveraging the Airbnb Blue Ocean Strategy to carve out a profitable niche in an oversaturated market. By focusing on larger properties in premium locations, Hernandez and his team have effectively differentiated themselves, securing high returns and long-term growth.

They began by identifying a clear market opportunity. Hernandez and his team noticed an oversaturation of smaller rentals, particularly those with one to three bedrooms. This overcrowded market led to fierce competition, lower nightly rates, and shrinking profit margins. As more of these smaller properties flooded the market, maintaining high occupancy or competitive pricing became increasingly difficult.

To overcome these challenges, they embraced the Airbnb Blue Ocean Strategy. Instead of competing directly in saturated segments, they targeted areas where demand outpaced supply. Their focus turned to larger homes—six or more bedrooms—with high-end features like pools and waterfront access. These properties attracted guests seeking exclusive, luxury experiences, helping FreedomVest carve out a niche in a less competitive space.

Using tools like the AirDNA Market Research Tool, they analyzed property distribution and discovered that only 4% of listings in their markets had six or more bedrooms. The rest broke down as follows:

➤ 1 Bedroom: 57%
➤ 2 Bedrooms: 23%
➤ 3 Bedrooms: 11%
➤ 4 Bedrooms: 6%
➤ 5+ Bedrooms: 4%

This data confirmed the opportunity. By focusing on this underrepresented segment, they could avoid price wars while addressing a real gap in the market. Further analysis showed that larger properties not only had higher occupancy rates but also achieved RevPAR (Revenue Per Available Room) up to 2.5 times higher than smaller units.

Building on these insights, the FreedomVest team developed an investment thesis around acquiring larger, premium properties with strong demand and minimal competition. Their strategy centered on a few core principles:

➤ Targeting homes with six or more bedrooms to cater to families, retreats, and event groups.
➤ Prioritizing waterfront locations—especially lakefronts, which offered strong returns and greater pricing flexibility than oceanfront properties.
➤ Investing in must-have amenities like pools, game rooms, outdoor cinemas, mini-golf areas, and BBQ/pizza ovens.
➤ Ensuring proximity to popular attractions, typically within 15–30 minutes of beaches, downtowns, or major landmarks.

What truly set their properties apart was their transformation into "mini resorts." By converting unused areas—garages into karaoke lounges or terraces into game zones—they created immersive, full-experience stays. Some homes were even themed, like an Italian villa complete with a pizza oven, outdoor cinema, and fire-lit BBQ zone. These enhancements offered guests not just accommodation, but a destination.

The results were outstanding. Hernandez’s larger homes consistently outperformed the market, with occupancy rates above 90% year-round and significantly higher revenue per property. For example:

➤ One property earned $346,087.01 in 12 months, with an 88.8% occupancy rate and ADR of $991.83.
➤ Another generated $256,421.51 with a 94.26% occupancy rate and ADR of $677.41.

This strategy didn't just deliver short-term profitability—it built a foundation for long-term scalability. By avoiding oversaturated segments and tapping into underutilized demand, Hernandez and his team have positioned FreedomVest for sustainable growth in the STR market.

Their success also led to the launch of FreedomVest’s consulting services, where Hernandez now shares his proven framework for STR investment and property design with other investors.

To expand his reach even further, Hernandez authored Short-Term Rental Secrets, a practical guide available on Amazon. The book offers actionable insights from his experience in both e-commerce and real estate, and includes strategies to build, scale, and exit a successful short-term rental portfolio. Readers can also download a free chapter through his website for a deeper dive into the methodology that’s helped FreedomVest stand out in a competitive space.

Jacobo Hernandez
FreedomVest
+1 269-253-6207
email us here
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