It should come as no surprise that nightly rates for the few hotel rooms still available in the metro Milwaukee area during the week of the RNC are up to six times more expensive than a normal summer week. However, operators of short-term rentals, such as Airbnb, as well as boutique hotels in the area
It should come as no surprise that nightly rates for the few hotel rooms still available in the metro Milwaukee area during the week of the RNC are up to six times more expensive than a normal summer week. However, operators of short-term rentals, such as Airbnb, as well as boutique hotels in the area are wondering whether they’ll see the same kind of financial windfall as many of the larger hotel properties in the region.
That’s according to Daniel Cruz, co-founder of Milwaukee-based washbnb, which provides linen and laundry services for short-term rental owners, property managers and Airbnb hosts. Based on recent conversations with local washbnb clients, Cruz said there’s a “fair amount of disappointment” about lower-than-expected levels of bookings for RNC week.
“I think many people are sort of worried that they’re just not even going to have the standard type of week that they would have in July without the RNC coming,” said Cruz.
He’s seen this scenario play out before with other highly anticipated large-scale events in different cities. A homeowner thinks they’re going to “get rich quick” by vacating their property and renting it out for tens of thousands of dollars.
“But generally, that just isn’t the case,” said Cruz. “It’s the experienced operators and the people that are well connected with this convention that seem to be the beneficiaries as opposed to the neighborhood businesses and the local businesses that I’m seeing.”
[caption id="attachment_592148" align="alignleft" width="530"] Daniel Cruz’s Airbnb property in Walker’s Point.[/caption]
Cruz has a unique perspective not only as the operator of a business who services short-term rentals, but also as the owner of a rental property himself. His three-story luxury duplex in Milwaukee’s Walker’s Point neighborhood sleeps up to 16 people between its two separate units – ideal for large groups, such as bachelorettes and wedding parties. Cruz has also rented it out to groups in town for Northwestern Mutual’s annual conference, which takes place this year July 20-23.
Before the 2020 Democratic National Convention was scaled back to an all-virtual event, the property was contracted by a major media company that had planned to host special events and evening gatherings in the upper-level common space, while sleeping some of its staff in the lower-level bedrooms.
Cruz hoped to land a similar booking for the week of the RNC, but the property – as of press time – remains available. It’s currently listed on Airbnb for $5,000 a night, which is up from a usual mid-July rate of $2,000 a night. He initially tried to rent it out privately, through outreach to RNC organizers and state delegations, but to no avail.
The weekends before and after the convention are also still open.
“If I don’t book those, it would actually be the first weekend dates since 2016 that would not be booked at this place,” said Cruz.
He said fewer weddings booked on those two weekends – due to the RNC – is probably a huge contributor. Wedding-related groups generate about 60% of bookings at the property.
“Not having that business around just for that week or stretch of weeks impacts everybody else that has to play in the space of hosting, hospitality,” said Cruz. “If we’re not necessarily connected to the convention, then other business is harder to come by.”
Still, he remains hopeful the property will get booked; it might just mean lowering the price to its normal rate.
