Dive Brief:
- Black Swan Holdings has acquired former short-term rental operator Lyric, the Florida-based real estate investment firm announced earlier this week.
- Significantly impacted by the pandemic, Lyric effectively shut down its rental operations in 2020, as previously reported by Forbes. Black Swan plans to relaunch Lyric this summer.
- The firm will rebrand its current Class A multifamily assets, including The Grant and Liz properties in Savannah, Georgia, to reflect Lyric’s luxury brand standards. It also plans to open new Lyric locations across the country. The relaunch comes as travel demand picks back up and short-term rentals are in steep competition with hotels.
Dive Insight:
In the first quarter of 2020, Lyric was operating nearly 600 units across 17 markets, including properties 70 Pine in New York City, Park 12 in San Diego, Muze at Met in Miami and Catalyst in Houston, Texas.
However, following the onset of COVID-19 and the halt of the travel industry, Lyric pivoted back to its in-house revenue management software, Wheelhouse, effectively stopping its short-term rental operations.
Now, as travel rebounds following the pandemic and consumers are increasingly looking to book vacation rentals over chain hotels, Black Swan will relaunch the brand.
“Lyric’s product offering resonated with modern travelers even before the pandemic. Many of the factors that made it attractive have only been heightened since,” Zachary Tombley, Black Swan founder and managing partner and Lyric CEO, told Hotel Dive.
The rise of remote work also contributed to Lyric’s attractiveness, Tombley said. “Before the pandemic, this was difficult for most workers to do — especially those with demanding jobs. As everyone knows, this has changed dramatically in three years, and we don’t expect it to change course. The demand for spaces that are private, design-forward, conveniently located, and suitable for living (not just staying) is high and will only rise from here.”
Black Swan’s asset manager, Black Swan Asset Management LLC, is already working on a real estate acquisitions pipeline to open future Lyric properties. The firm is exploring the top 25 metropolitan markets in the U.S. as well as some secondary and tertiary markets for investment, Tombley said.
“We’re seeing a lot of success in our real estate acquisitions strategy despite the current state of the capital markets, and our development and capital partners are really excited to invest in future Lyric properties with us,” said Daniel Sodroski, managing partner at Black Swan Holdings.
The firm is particularly focused on South Florida, Denver, Austin, Washington, D.C., Nashville, Kansas City and New York City, Tombley said, adding that Black Swan hopes to close two to three deals by the end of 2023 or early 2024.
The Lyric acquisition includes domestic and international trademark rights, a comprehensive brand package, operational and performance data, and the lyric.com domain, the announcement detailed.
According to its website, Black Swan short-term rental properties currently include “comforts of home and indulgences of a luxury hotel,” including keyless entry, high-speed wifi and high-end bedding. The rebrand changes will vary by property but could include cosmetic upgrades or sound dampening and structural improvements.
