ORLANDO—For all the talk of Airbnb's impact on the hotel industry, there is another factor at play. More travelers are tapping into vacation homes.

The Encore Club at Reunion, a master-planned vacation rental community in Orlando, has completed its first 77 homes. The community offers guests luxury and convenience a fraction of the price of nearby hotels—and presenting investors an opportunity to own a piece of the world's vacation capital and the US's number one tourism destination.

GlobeSt.com caught up with Florida-based developer Encore Capital Management Group's James Schumaker to find out why investors are drawn to Orlando and what feeder markets are rising in part two of this exclusive interview. You can still read part one, in which he discusses the economics of renting a vacation home compared to a hotel room.

GlobeSt.com: Why are Investors drawn to the Orlando market?

Schumaker: When many people around the world hear 'Florida,' they immediately think of Orlando. The city has an international brand like none other, which is invaluable when it comes to luring tourists.

Savvy investors understand that Orlando's year-round demand means the market will remain resilient through economic ups and downs. Once our buyers take a look at our pricing and the market fundamentals in place, they realize that they can get tremendous bang for their buck compared to investment opportunities in other destination-driven markets in Florida and beyond.

GlobeSt.com: What are the prices of the homes and which feeder markets have been the most active?

Schumaker: Vacation rental homes at the Encore Club at Reunion are priced from the mid-$300,000s to mid-$700,000s, depending on the number of bedrooms. Keep in mind that each bedroom translates to the potential for additional revenue on the rental side of the equation, so well-capitalized buyers tend to spring for our larger homes. South America, Europe and Asia have all been constant feeder markets, but we've seen a recent spike in demand from the Middle East following Emirates Airways' recent expansion of year-round coverage to Orlando International Airport.

GlobeSt.com: When will Encore Club be open for renters?

Schumaker: We're putting the finishing touches on our clubhouse and aqua park now and our first group of 80 vacation homes will be open to renters as of mid-March.

ORLANDO—For all the talk of Airbnb's impact on the hotel industry, there is another factor at play. More travelers are tapping into vacation homes.

GlobeSt.com: Why are Investors drawn to the Orlando market?

GlobeSt.com: What are the prices of the homes and which feeder markets have been the most active?

GlobeSt.com: When will Encore Club be open for renters?

Schumaker: We're putting the finishing touches on our clubhouse and aqua park now and our first group of 80 vacation homes will be open to renters as of mid-March.

Instant Insights /

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