an opportunity to bring together like-minded digital nomads more interested in connections than 500-thread count bed sheets . The pandemic certainly slowed growth , but now that all four properties are showing strong results and Abraham says he has more demand than beds , the potential to add as many as 10 Outposts in Indonesia , Sri Lanka and Thailand within the next year or so seems increasingly realistic .
THERE ’ S JUST AN ENTHUSIASM WHEN YOU ’ RE OUTSIDE YOUR OWN COUNTRY AND WANT TO MEET , MIX AND LEARN FROM OTHER FOLKS . WE TRY TO INFUSE OUR BRAND WITH KIND OF THAT PROMISE .
- DAVID ABRAHAM
Occupancies are now running in the 90s and ADR has room to grow , according to Abraham , who has worked from the White House to Wall Street , the plains of northern Uganda to the arctic cold of Lithuania , running NGOs , advising investors and writing a book . “ The main thrust of our target audience has not yet begun to travel again ,” he adds . “ We ’ re seeing a new wave of people who haven ’ t traveled before coming out … We know people trust that they can get their work done with us , and it creates really strong brand resonance … It ’ s more akin to a summer camp and how people bond with each other .”
Abraham further explains that Outpost gives its users permission to engage with one another . “ When you check into a property , people are asking , ‘ Hey , is there anyone here working on web 3.0 or SEO ,” he says . “ I would never check into a Sheraton and ask if there is someone here who is in the mining industry … We ’ re trying to give guests the permission to just walk up to someone in our spaces and ask ‘ what are you working on ?’ And for a generation that ’ s not used to it – it ’ s empowering .”
Outpost is upmarket from a hostel or other funky brands that cater to the more youthful band of wanderers . Its guests tend to skew a bit older ( 25 to 42 ) and are generally higher spending , which happily leaves room for further revenue growth and potentially a move further upmarket .
Rooms tend to trade for about US $ 40 a night and increases to US $ 45 to US $ 50 when you add F & B and programming revenue . There are some suites that will trade around US $ 130 and long-term stays are sold for about US $ 1,100 a month in Ubud , Bali , or Sri Lanka . Next up is a membership model , again driven by the ability to connect with fellow Outpost travelers as opposed to collecting points .
ADR is really affected by length of stay and Abraham says Outpost might sacrifice slightly on ADR for occupancy ’ s sake . In fact , pre-COVID , monthly rentals were Outpost ’ s bread and butter .
CHOOSE YOUR PARTNERS WELL The challenge for Outpost , according to Abraham , is finding the right real estate partners . But , he adds , young Asian hotel owners worried about their future , especially business hotel owners and those catering to Chinese guests , are showing increasing interest in his alternative platform that Abraham expects will have a sweet spot of around 80 to 100 rooms .
“ We come in and say , ‘ Listen , the world has changed and we have demand for this new type of traveler , and the conversations really start to flow from there ,” Abraham says , adding that Outpost monetizes differently and does not require the biggest room sizes . “ What we really need is some flexible space , especially in the lobby , or nearby , that we can convert into communal workspace and F & B . Those types of properties lend well to what we do .”
July / August 2022 hotelsmag . com 19