Orange Beach Luxury STR Performance: What I’m Seeing Right Now (Turquoise Place, Phoenix Orange Beach II & Sister Towers)
_(800_x_150_px)_(2).gif)
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
-
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.
-
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.
-
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.
-
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:
-
View & stack (true beachfront vs. oblique), floor height, private grill/hot tub presence at Turquoise Place, and sleep count.
-
Finish level + furnishings (fresh, consistent design converts more inquiries at rate).
-
Owner use (30 owner nights at peak times can trim gross by five figures).
-
Booking mix (weekly summer vs. monthly winter “snowbirds” shifts ADR and occupancy).
Stretch cases above this range occur when:
-
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)
-
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.
-
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.
-
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:
-
Manager commission on gross rent (varies by firm and service scope).
-
Cleaning & linen program—often passed to the guest, but owners should confirm turnovers, quality checks, and deep-clean cadence.
-
CC processing, platform costs, damage waivers—how these are allocated matters to net.
-
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
-
Owner Nights & Holds – High-season personal use reduces gross materially. I quantify this upfront so you know the trade-off.
-
Unit Positioning – Upgraded kitchens/baths, cohesive décor, and professional photos improve search-to-booking conversion and review scores.
-
Channel Mix – Direct vs. OTA (Vrbo/Airbnb) affects fees, reach, and rate controls; one Phoenix West unit shows a blend including Airbnb.
-
Booking Window Strategy – Securing peak weeks early at firm rates protects yield; I study year-over-year month mixes to keep seasonality optimized.
-
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)
-
Base-case Gross: $95,000
-
Less Management (20% example): −$19,000
-
Less HOA + Insurance + Taxes (tower-specific): estimate $25,000–$35,000 combined (varies by building/coverage).
-
Less Maintenance/CapEx Reserve: $5,000–$10,000
Indicative Net (before debt): ~$31,000–$46,000
Now compare to actuals:
-
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
-
Storms & Insurance: Deductibles, post-event downtime, and special assessments.
-
Regulatory: Orange Beach maintains STR-friendly resort corridors, but compliance and licensing still matter.
-
Condo Financials & Capital Plans: Elevators, façades, windows/doors—capex cycles can affect dues and future assessments.
-
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
-
Tower/Stack Shortlist across Turquoise Place and Phoenix Orange Beach II sister towers with apples-to-apples ledgers.
-
Comp-set ADR & Occupancy Model using real booking history (month by month).
-
Operating Plan: management selection, photo + copy refresh, linen standards, preventative maintenance cadence.
-
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.
—
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)
-
Actual last 24 months of gross, ADR, occupancy, owner nights, and channel mix.
-
All owner charges and pass-throughs (credit card, platform, linen, maintenance).
-
Housekeeping standards and deep-clean schedule; QA photo reports between turns.
-
Response SLAs for after-hours issues (HVAC, lockouts).
-
Rate-setting framework for peak weeks and minimum-night rules by season.
-
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
SEARCH ORANGE BEACH REAL ESTATE LISTINGS FOR SALE
- All Listings
.gif){kind=logo}
Caribe Seaside Orange Beach — New Beachfront Luxury Condos | Meredith Folger
Caribe Seaside, Orange Beach: My In-Depth Guide to the New Beachfront Luxury Tower
Guided by Integrity Backed by Experience Search the Gulf with Meredith Folger Amon
As I evaluate new construction on the Gulf Coast for my buyers and sellers, I look for three essentials: thoughtful…
Ask A Question or Sign Up To See New Real Estate Listings Before Your Competition
When it comes to finding the home of your dreams in a fast-paced market, knowing about new listings as soon as they are available is part of our competitive advantage.Sign up to see new listings in an area or specific community. Contact Meredith with any questions you may have.
Leave A Comment