The Next DFW Hotel Disrupter? Rastegar Property, Sonder Create 270-Unit Long-Term Stay High-Rise
With the hotel and lodging market bristling with competition from Airbnb and newer luxury hotel offerings, two companies believe they can disrupt it even further with a new, 270-unit, high-rise long-term stay concept in Dallas-Fort Worth.
Developer Rastegar Property is constructing a hospitality-focused high-rise at 1899 McKinney Ave. in Dallas, and its hospitality partner, Sonder, is expected to lease out the entire building to operate a long-term stay, boutique hotel concept.
The plan is to offer travelers flexible accommodations with the same tech-centric amenities of a quality hotel alongside the boutique and laid-back feel of an Airbnb rental.
“The hospitality industry has been ripe for disruption for a long time, and I believe Sonder is providing the industry with the refresh it needs,” Rastegar Property CEO Ari Rastegar said.
“As a tech-driven firm, Rastegar instantly connected with Sonder over a mutual belief in deploying a tech-centric approach to business. The shared vision for this partnership is to institutionalize rentals by creating a high standard that fills the gap between five-star hotels and renting a home, especially with respect to Sonder’s service standards."
The developer will adorn its units with luxury fixtures, appliances, fully equipped kitchens, in-unit laundry facilities and hotel amenities such as valet, ride-sharing options, check-in services and common areas.
Austin-based Rastegar said the partnership offers it the benefit of having a long-term, 10-year tenant in Sonder right out of the gate. This gives Rastegar the runway it needs to speed up construction and financing.
The 1899 McKinney Ave. property is expected to open its doors to guests in early 2023.