Orange Beach Luxury STR Performance: What I’m Seeing Right Now (Turquoise Place, Phoenix Orange Beach II & Sister Towers)
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I often analyze rental ledgers across Gulf-front luxury condos in Orange Beach—think Turquoise Place and the Phoenix family of towers. Below is a plain-English summary of how these properties are actually performing, what drives returns, and how I project income for buyers comparing units and management models.
Snapshot: Recent, Real Numbers
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Turquoise Place (3-bed example): One report shows $85,591 gross rent YTD through Sept 22, 2025 with an adjusted paid occupancy near ~51% and 174 guest nights; average stays run ~5 nights, with prime-summer nightly rates peaking around $950–$1,100+ for short stays.
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Turquoise Place C-tower 3-bed (2024 full year): $105,144.92 gross over 49 bookings / 285 nights, with ~30 owner nights used; as of Jan 9, 2025, there was $22,752 already on the books for the new year.
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Phoenix West examples: I’m seeing $81,588 gross in 2023 with ~81% occupancy and ADR ~$289 for a 3-bed stack; another Phoenix West corner logged $98,417 gross for 2024, while a 2022 ledger peaked higher (~$147,655 during the post-pandemic surge). Mix of monthly “snowbird” and weekly bookings matters—a 2025 unit I reviewed showed $59,686 YTD on 278 nights because of long winter stays at lower ADRs.
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Newer towers / finish upgrades: Premium finish packages and re-configured floor plans can help push both ADR and conversion (fewer objections on décor/fixtures). I’ve reviewed a Phoenix Gulf Towers 4-bed that documented roughly $100k in interior upgrades plus ~$100k in furnishings to position the unit at the top of its comp set.
What That Means for Today’s Projections
When I model a turn-key 3–4 bedroom Gulf-front in Orange Beach (Turquoise Place, Phoenix Orange Beach II sister comps), I set base-case annual gross in a $80k–$120k band, adjusting for:
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View & stack (true beachfront vs. oblique), floor height, private grill/hot tub presence at Turquoise Place, and sleep count.
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Finish level + furnishings (fresh, consistent design converts more inquiries at rate).
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Owner use (30 owner nights at peak times can trim gross by five figures).
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Booking mix (weekly summer vs. monthly winter “snowbirds” shifts ADR and occupancy).
Stretch cases above this range occur when:
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the unit is optimized and consistently marketed across channels, 2) owner use is minimal, and 3) we capture peak dates early at strong ADRs (Memorial Day → mid-Aug, fall events, holidays). Historical spikes like 2022 Phoenix West ~$147k are useful comps but not the baseline I underwrite for 2025–2026.
Occupancy, Vacancy & Seasonality (How Weeks Fill)
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Prime (mid-May–mid-Aug): Highest ADRs; shorter bookings can push nightly to ~$700–$1,100+ depending on tower/finish. Example summer sequences at Turquoise Place showed several 3–7 night stays ranging ~$705–$1,100 per night.
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Shoulder (Mar/Apr, Sep/Oct): Solid occupancy with family travel, festivals, and perfect beach weather; ADR steps down from summer highs but remains healthy. Multiple March–April stays at rising per-night rates appear across the TP ledgers.
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Winter (Nov–Feb): Lower ADR; occupancy often carried by monthly guests. Phoenix West logs show long winter blocks that inflate nights but at discounted monthly rates.
Fees & Services: What to Expect From Managers
Typical full-service management in our market includes dynamic pricing, marketing, 24/7 guest support, housekeeping coordination, and maintenance triage. Owners generally see:
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Manager commission on gross rent (varies by firm and service scope).
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Cleaning & linen program—often passed to the guest, but owners should confirm turnovers, quality checks, and deep-clean cadence.
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CC processing, platform costs, damage waivers—how these are allocated matters to net.
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Maintenance—some managers handle minor items; larger repairs are owner-approved.
The line-item flow and net calculations are visible on actual ledgers like the ones summarized above (e.g., ADR/occupancy detail, owner nights, bookings by month).
Variables That Move ROI
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Owner Nights & Holds – High-season personal use reduces gross materially. I quantify this upfront so you know the trade-off.
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Unit Positioning – Upgraded kitchens/baths, cohesive décor, and professional photos improve search-to-booking conversion and review scores.
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Channel Mix – Direct vs. OTA (Vrbo/Airbnb) affects fees, reach, and rate controls; one Phoenix West unit shows a blend including Airbnb.
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Booking Window Strategy – Securing peak weeks early at firm rates protects yield; I study year-over-year month mixes to keep seasonality optimized.
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Sleeper Count & Layout – Bunks + baths sell weeks; Phoenix Orange Beach II’s 3-bed/4-bath format often competes closely with Turquoise Place 3-beds on occupancy.
Simple Pro-Forma (Illustrative, Based on Ledgers Above)
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Base-case Gross: $95,000
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Less Management (20% example): −$19,000
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Less HOA + Insurance + Taxes (tower-specific): estimate $25,000–$35,000 combined (varies by building/coverage).
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Less Maintenance/CapEx Reserve: $5,000–$10,000
Indicative Net (before debt): ~$31,000–$46,000
Now compare to actuals:
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Turquoise Place 3-bed at $105k gross with 30 owner nights will net very differently than a Phoenix West year with heavy winter monthlies at ~60k gross on 278 nights. Right property + right operating plan is everything.
Risk Factors I Underwrite
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Storms & Insurance: Deductibles, post-event downtime, and special assessments.
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Regulatory: Orange Beach maintains STR-friendly resort corridors, but compliance and licensing still matter.
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Condo Financials & Capital Plans: Elevators, façades, windows/doors—capex cycles can affect dues and future assessments.
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Demand Cycles: 2022-style highs aren’t guaranteed. I anchor on conservative comps like 2023 Phoenix West $81.6k and 2024 TP $105k rather than best-ever spikes.
My Process for Buyers
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Tower/Stack Shortlist across Turquoise Place and Phoenix Orange Beach II sister towers with apples-to-apples ledgers.
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Comp-set ADR & Occupancy Model using real booking history (month by month).
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Operating Plan: management selection, photo + copy refresh, linen standards, preventative maintenance cadence.
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12-Month Ramp Plan to capture peak dates and build reviews.
If you’d like to see unit-specific pro-formas tied to real rental histories, I’ll prepare those side-by-side with current listings.
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I’m Meredith Folger Amon, a Gulf Coast Expert Real Estate Advisor, licensed in Alabama and Florida. I specialize in helping buyers and sellers navigate luxury condos and Gulf-front investments in Orange Beach and Ono Island. Explore current Orange Beach condos here: Orange Beach — https://www.searchthegulf.com/orange-beach/. For new construction and custom coastal homes, start here: Ono Island New Construction — https://www.searchthegulf.com/onoconstruction/. If you’re comparing Turquoise Place with Phoenix Orange Beach II and want realistic, unit-level ROI, I’m happy to help you run the numbers at www.searchthegulf.com.
Quick Due-Diligence Checklist (What I ask property managers)
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Actual last 24 months of gross, ADR, occupancy, owner nights, and channel mix.
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All owner charges and pass-throughs (credit card, platform, linen, maintenance).
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Housekeeping standards and deep-clean schedule; QA photo reports between turns.
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Response SLAs for after-hours issues (HVAC, lockouts).
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Rate-setting framework for peak weeks and minimum-night rules by season.
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CapEx plan for linens, appliances, paint, and soft-goods refresh cadence.
To see active luxury condo listings and request pro-formas: www.searchthegulf.com
#searchthegulf #meredithfolger #becausewelivehere
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