Housekeeping Solutions Platform Doinn’s Strategic Advance into Brazil

Key Takeaways for Vacation Rental Managers:

• SaaS provider for the short-term rental cleaning sector Doinn has launched operations in São Paulo, marking its expansion into the flourishing Brazilian market.
• After years of monitoring, Doinn identified that the Brazilian short-term rental sector has matured sufficiently for them to introduce their specialized cleaning services.
• The initial response from São Paulo’s cleaning companies and short-term rental industry players is reported to show strong receptivity to Doinn’s offerings.
• Doinn’s goal is to forge significant partnerships in Brazil, aiming to boost operational efficiency within the short-term rental space.
• In 2022, short-term rental activities generated a significant €4.8 billion in Brazil, signaling a 31% year-over-year growth and driving 115,000 jobs, underlining the sector’s economic influence and potential.

About Doinn:

• Doinn offers a marketplace for outsourcing professional cleaning, laundry, and linen rental services, aimed at short-term rental managers.
• Professional property managers can coordinate and track cleaning tasks through ‘Doinn Organise’ and access vetted service providers with ‘Doinn Buy’.
• ‘Doinn Sell’ caters to the service providers’ side, offering cleaning and linen companies an opportunity to connect with a broad network of short-term rental hosts, 

Uvika’s View:

• One cannot ignore the timeliness and strategic merit of this decision. Brazil’s short-term rental sector is not only burgeoning but stands as a locus of contemporary industry innovation and growth. 
• The country, now featured on Airbnb’s top ten list for its high density of Guest Favorites listings, exemplifies a market at its inflection point—a promising sign for players like Doinn ready to capture this momentum.
• A 110% surge in Airbnb bookings paints a vivid picture of the sector’s vitality in Latin America, particularly in Brazil. 
• Such exponential growth embodies the pent-up demand for tourism and hospitality services post-pandemic and mirrors the region’s broader economic recovery and consumer behavior shifts.
• Airbnb’s targeted investments in the region—spanning from localized commercials to celebrity partnerships—signal a vested interest in cultivating a nurturing ecosystem that supports operational enterprises like Doinn.
• Industry challenges and benefits have been thoroughly documented by TMF Group, acknowledging the conditions that face businesses looking to make their mark in Brazil. Nevertheless, recent reforms designed to simplify business operations and facilitate foreign trade, as detailed by Trade.gov, bode well for Doinn’s expansion efforts.
• The International Monetary Fund’s Article IV consultation with Brazil IMF provides an optimistic outlook on the government’s intent to expand development credit in key areas, likely to encourage market growth and present opportunities for Doinn’s operational services.

Bob W Expands Nordic Presence with Unique Properties in Helsinki and Turku

Key Takeaways for Vacation Rental Managers:

• Tech-savvy serviced apartment brand Bob W announces expansion with two additional properties in Finland’s vibrant cities.
• In this context, being tech-savvy encompasses an advanced booking process, contactless entry, 24/7 support, and the utilization of its proprietary technology stack.
• The new properties include Bob W Kamppi in Helsinki, complementing the upcoming Bob W Kaarti, and Bob W Turku City Centre, marking the brand’s first presence in Turku’s historic market area.
• Over a hundred sustainable, tech-integrated apartments join Bob W’s European portfolio, embodying the ‘Best of Both Worlds’ philosophy combining hotel reliability with authentic local living experiences.
• Locally inspired designs are paired with seamless digital services, providing a unique, sustainable accommodation experience for guests.
• The development revitalizes the iconic Eerikinkatu 12C building, offering prime access to transport, culture, and Turku’s culinary scene, enhancing the seasonal allure of the city.
• With partnership from Avarrus Architects, Bob W Kamppi’s renovation emphasizes environmental consciousness aiming for LEED gold certification through sustainable practices and materials.
• Both Bob W Turku and Bob W Kamppi offer fully-equipped apartments with contemporary home comforts and provide a fully-digital guest journey, enhancing both short-term and extended stays.

About Bob W:

• Bob W operates 27 aparthotel and co-living properties across Europe, covering key locations in the UK, Spain, Finland, Italy, Norway, Greece, and Estonia.
• The company offers flexible rates, including daily, weekly, and monthly options, accommodating both short-term visitors and long-term residents.
• At the core of its brand is sustainable and autonomous hospitality technology, aiming to deliver a local, contactless, five-star experience at scale.

Uvika’s View: 

• In a recent article, we discussed the collapse of companies like FrontDesk, Domio, and StayAlfred, which adopted the real estate arbitrage model similar to Bob W. 
• These businesses, which involved leasing properties for furnishing and subsequent subleasing, faced significant challenges due to the substantial capital required and dependency on consistent rental revenue. Their decline prompts an evaluation of the viability of this approach at a larger scale.
• Despite these industry hurdles, Bob W distinguishes itself through strategic choices. CEO Niko Karstikko points out that most Bob W properties operate under a hotel license. This approach not only ensures legal compliance and standardized quality but also instills a higher degree of trust among customers and regulatory bodies, setting the company apart from its now-defunct peers.
• By converting historic and iconic buildings into alternative accommodations, Bob W satisfies the modern tourist’s appetite for individualized travel experiences, underscoring a desire for authenticity coupled with exclusivity.
• Moreover,these buildings often require carefully considered renovations that can incorporate modern environmental standards, merging the allure of antiquity with the imperatives of modern conservation.
• Indeed, beyond the physical modifications, the company’s ‘Show Us Your Numbers‘ campaign further underscores its commitment to sustainability within the hospitality sector. By promoting transparency in environmental reporting, Bob W not only reinforces its own green credentials but also champions industry-wide accountability. 
• This initiative reflects a proactive approach to eco-consciousness, advocating for verifiable progress in sustainability practices among peers and competitors alike.

EU Advances Short-Term Rental Regulations: What Rental Managers Need to Know for Compliance and Preparation

Key Takeaways for Vacation Rental Managers:

• On January 24, 2024, the internal market committee of the European Parliament voted on a provisional agreement that may shape the future of short-term rental regulations within the EU. A decision is expected soon, which could standardize how rentals operate across member states.
• If you manage short-term rental properties in the EU, it is crucial to stay abreast of this pending legislation. The STR Initiative is likely to bring about significant changes, including a unified registration process for all short-term rental properties.
• Prepare to engage with an expected new online registration system designed to simplify compliance and facilitate easier verification by local authorities. This system will serve as a cornerstone for property identification.
• Anticipate a mandate requiring Online Travel Agents (OTAs) such as Airbnb and  Booking.com to share detailed information on your listings with regulatory bodies. This includes providing property addresses, registration numbers, and URLs to enable more effective governance and crackdown on illegal listings.
• Understand that, per the proposed rules, your rental activities will not be exempt from value-added tax (VAT) starting January 2025. It’s essential that you plan for these changes to ensure financial compliance and prevent any potential liabilities.
• Keep informed of the evolving legislative landscape to ensure your business remains compliant. These changes underscore the need for you to understand your obligations regarding property registration, identity verification, and VAT.
• Major industry players like Airbnb are preparing for a significant transformation in the STR sector. Their advocacy for clear regulations suggests that upcoming changes could pave the way for a more sustainable and compliant operating environment.