For those that follow the vacation rental market in the Outer Banks in general and more specifically, the Hatteras Island sub-market, the recent news regarding the Wyndham acquisition of Hatteras Realty is a relief. The rumors about possible suitors had been flying for some time since Hatteras Realty owner Stuart Couch’s death in 2012.
I say it is a relief because of all the possible outcomes, this seems to be the best possible scenario. The top 3 reasons why this should be viewed positively by everyone who follows this market include:
1) Local Competition Improves Quality -
In this highly competitive market for property management and rental services, Hatteras has distinguished themselves. If a local competitor had acquired Hatteras Realty, the landscape would have looked significantly different going forward. Vacation homeownership is, for most, the realization of a dream come true and a highly personal experience. Owners want their home to be managed as if they were doing it themselves. The competition among management companies on the island and the quality of service provided to homeowners and renters alike is almost assuredly higher with more management companies vying for their business. A locally orchestrated acquisition could have diminished the overall experience for all involved.
2) Wyndham Could Bring The World to Hatteras Island’s Doorstep -
With billions in revenue, a marketing budget that likely dwarfs anything Hatteras Island’s PM market has seen and a hundred thousand properties globally, Wyndham’s acquisition could propel the Hatteras rental market from a “best kept secret” to worldwide acclaim. Those of us that have spent time on Hatteras love the scenic beauty, the waves, the sound, the fishing, the weather, the water sports and the local restaurants. Now, the world will surely be more aware of all that is great about the island. Islanders that have successfully resisted the corporate franchise model by growing and supporting its locally owned and Hatteras-style businesses, should not fear an invasion of the corporate world. Think of Wyndham as the giant marketing machine sending more visitors to support the independent lifestyle Hatteras is known for.
3) This is Good for the Local Economy -
Hatteras Island residents face many challenges year-to-year, including storm-induced economic disruption; strong, local competition; a tourist season that only lasts 8 months and uncertainty regarding island access. It was good news for local residents when Wyndham said “the hospitality professionals many of you have come to know at Hatteras Realty will remain in their positions.” Whew… we all know that could have played out much differently, especially if a local competitor had acquired Hatteras, creating a likely consolidation of offices and positions across the island.
Although many corporate acquisitions start out full of promises to benefit all those involved, we all know they don’t all end up being viewed so positively in the long run. But, this one seems to be a great fit for renters, homeowners and island residents. I’m interested to see how this works out.
Let me know your thoughts.
Mike Steagall
