Profit In Paradise - May 2025 - Rental Income & Occupancy in Coral Estate

What makes a good vacation rental investment?

Strong short-term rentals are built on more than just peak-season performance. In most markets, success hinges on sustainable occupancy, healthy average daily rates, and long booking lead times over the year. Curaçao is no exception. On its southwest coast sits Coral Estate. Spanning 3.5 square kilometers with 3 kilometers of coastline, only 30% of the resort has been developed to date. It’s one of the island’s top-tier residential communities and the data paints a nuanced picture. 

Curaçao’s high season is exceptionally strong, but the low season presents both real challenges and real opportunities. In Q1, Coral Estate homes saw occupancy rates north of 80% and daily rates over $420 USD. When examining the past 12 months, however, the annual occupancy average falls just shy of 70% while the ADR is $374 USD, still a solid performance by any standard. At those averages, gross rental income would reach just under $96,000 USD annually. The real opportunity, however, lies in the months that lag. 

With thoughtful planning, owners who optimize for high season and implement targeted low-season strategies (particularly in September and October) stand to significantly outperform the average. The best-performing properties aren’t just beautiful, they’re dynamically priced, effectively marketed, and made available early enough to attract premium bookings. In January, Coral Estate saw a 141-day median booking window, meaning guests booked nearly five months in advance. A strong signal of both traveler confidence and brand trust.

Vacation rental success doesn’t come from riding the peaks - it comes from managing the valleys. The gaps aren’t just risks; they’re opportunities to be closed!

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This month we looked at 4+ bedroom “upscale” properties in Coral Estate

• A 4+ bedroom “upscale” should expect in the neighborhood of $642 USD as a high season average and $344USD during the low season.  This demonstrates strong seasonal pricing strength with ~87% spread between high and low seasons. It signals strong pricing power during peak months which means that if your property performs similarly, pricing strategy can double your income in high season

• Homes that aren’t adjusting dynamically are leaving significant revenue on the table.

• Set longer minimum stays, and try to secure early bookings with incentives (like a small discount for bookings made 3+ months out).

Pricing expectations for the 2025/26 holiday season

This is the start of high season. Avoid low-season pricing past the first week of December and prepare to lift rates sharply by mid-month. Even after New Year’s, pricing remains elevated for another 10–14 days. Don’t drop rates too early. High-season pricing can be achieved for some time still.

One of the most valuable single nights of the year. Manage your minimum stays carefully, avoid last-minute discounts and consider requiring check-in/check-out flexibility before and after New Year’s Eve to reduce unbookable gaps. A noticeable mini-peak around Valentine’s Day. Consider weekend premiums and event-focused marketing 

Understanding the data is critical as it will help you maximize nightly revenue when demand is at its highest.  Make sure you protect premium dates with strict policies and fine-tune your pricing curve into the new year. It’s clear that Coral Estate behaves like a mature, data-driven vacation market, one where top performers use pricing precision to outperform.

Guests book well in advance for Q1 stays, up to 141 days ahead in January, making it possible to forecast revenue and adjust rates long before check-in. In contrast, September and October bookings happen much closer to arrival, ideal for filling gaps with last-minute promotions or flash deals.

While occupancy lags during the fall months, they aren’t dead months, just underleveraged ones. Get creative to enhance appeal without relying solely on price cuts.

The link between high occupancy and high ADR during the high season shows that Coral Estate’s pricing responds well to demand. The next opportunity lies in lifting low-season performance, whether through design upgrades, improved marketing, or tighter revenue management tools.