Welcome to The Amado, Palm Springs
Built in 1955, The Amado is a 5 unit mid-century modern mini-compound located in the heart of Palm Springs, a few short miles from Downtown. There are 4 x 1-bedroom units and 1 x 2-bedroom unit, each with kitchens and baths, surrounding the community pool.
Located in the Sunrise Park neighborhood, at 1821 E Amado Rd, Palm Springs, The Amado is offered at $1,275,000.
Stats: 6 bedrooms (5 units), 5 baths, 3,303 total sq / ft, 11,021 sq / ft lot
The Amado is a stunning example of midcentury modern architecture. This celebrated boutique accommodation is at the top of discerning travelers’ lists around the globe as a must-see destination.
A well-established operation that has had consistent positive cashflow, repeat clientele until the end of 2018, and now has tremendous upside potential.
Owner and professional photographer Jaime Kowal moved to Palm Springs in 2013 to purchase and renovate The Amado as a design-driven and highly curated boutique accommodation. Since then it has continually run as a successful cash-flow positive vacation rental property.
Revenue streams have included vacation rental, commercial photo shoots, cleaning, special events and add-on amenities. The property boasts repeat clientele and over 700 five-star reviews on Airbnb.
The Amado has attracted a broad range of visitors of all ages from around the world, including celebrities, influencers, artists, and creative guests. Reviews rave about the mid-century modern architecture, minimalist design aesthetic, spacious suites, central location, and the private courtyard boasting a sparkling pool and views of the San Jacinto mountains.
Everyone loves Palm Springs whether they are architecture buffs, attending one of the many annual events such as the Coachella Music Festival or celebrating a weekend away poolside with family and friends.
Countless Magazine Articles & Reviews
Due to The Amado’s exceptional architecture and design, The Amado has been featured on the cover of Sunset Magazine and highlighted in Architectural Digest, Wallpaper Magazine, Travel & Leisure, Vogue Living Australia, Elle UK , GOOP, Mr Porter, Apartment Therapy, Palm Springs Life Magazine, Palm Springs Style Magazine, Design Love Fest, LA Times, USA Today, E! Canada, and many more.
Press for The Amado
OPTION ONE - Full-time residency + 4 rentals or
5 long-term or month-to-month rentals)
The City of Palm Springs currently restricts vacation rentals to a minimum of 28 days each. One possibility for rental income is to operate the property as owner (or manager) in residence and offer the other units for rent as fully furnished 30+ day rentals or full time (1+ year) rentals. You may also rent all units without an owner on location. (Note: The City of Palm Springs limits vacation rentals to a minimum of 28 days for multi-unit properties like this property.)
Current rental rates:
1 bedroom: $1,995/month
2 bedroom: $2,495/month
OPTION TWO Family and Friends compound
We’ve always said that a good group of friends could join forces and purchase the Amado to use at their will, offering a communal lifestyle while keeping the independence of having their own individual unit. This investment could equate, for example, roughly a four 1-bedroom unit buy in at ~$225,000 and a larger 2-bedroom at ~$375,000.
OPTION THREE - The Hotel
The current owner has gone through an intensive year-long process to develop approved architectural plans, and pulled the associated permits, that would re-design the property to meet the criteria set out by the City of Palm Springs for a successful hotel conversion. With the necessary construction changes that would allow it to be re-zoned as a hotel, it would allow the new owner to rent the rooms out on a nightly basis and not have to follow the short-term rental guidelines since it would be operating as a hotel. The pro-forma averages the expenses from the past five years of operation along with the projected revenue from the addition of a sixth unit which yields a significant increase in cash flow from the increased room count.
There is an estimated cost of $250,000 to convert the property to a hotel which includes the addition of a sixth unit to get an official hotel status with the City of Palm Springs. Room 5, currently a two-bedroom unit, would become 2 x onebedroom units, one with a living room.
Room 5 converted into 2 x 1-bedroom units, one of which would retain the kitchen and living area.
The Amado can be offered turnkey furnished. The FF&E (fixtures, furnishing and equipment) including all furniture, photographic art, small appliances, linens & kitchen supplies are available to negotiate separately from the sale of the building.
Additional assets for The Amado as a separate negotiation:
– Architectural plans & city approved building permit (for hotel conversion, valued at $75,000)
– Intellectual property including logo and domain name - www.theamado.com
– Business delivery system - contract templates, maintenance checklists, suppliers
– Database of past guests and waitlist of guests wishing to book into next season
Ideas on how to increase revenue at The Amado
– Increase the occupancy rates via a Channel Manager that will allow The Amado to be featured on other sites outside of Airbnb and VRBO, such as Expedia, Travelocity, Mr & Mrs Smith, or others exposing the property to tens of thousands more potential guests.
– Join Airbnb Plus and Boutique-homes.com
– Raise revenues by 11.5% by charging the TOT (Transient Occupancy Tax managed by the City of Palm Springs) separately from the room rates on Airbnb.
– Integrate a professional PMS (Property Management System) and run reservations directly through your website to save on the fees that other OTA’s charge (3% to 20% savings)
– Add additional services including catering, food & beverage, pool toys, bathrobes, spa services, yoga, …etc.