Lessons from Scaling an STR Business with Kerri Gibson

Meet the Experts

Jamie Lane, Chief Economist at AirDNA and host of the STR Data Lab, brings deep industry analysis and economic insights to the short-term rental sector in 2025. He is joined by Carrie Gibson, CEO and co-founder of Chalet’s Hygge, an owner-operator who has grown from a single short-term rental to a portfolio of six properties and a 17-room boutique motel.

Scaling a Short-Term Rental Business: The Chalet’s Hygge Journey

Defining the Hygge Philosophy in Hospitality (2025)

At the heart of Chalet’s Hygge's' approach to scaling a short-term rental business in 2025 is a powerful brand ethos. As Carrie Gibson explains, “Hygge is a Danish concept for a lifestyle…finding joy and contentment in the simple moments of life, surrounded by those you love.” This philosophy, rooted in Scandinavian values and experienced firsthand during a transformative trip to Norway, serves as the guiding principle for every guest interaction and business decision.

By 2025, lifestyle-driven branding is a key differentiator in the crowded short-term rental market. Carrie emphasizes, “It’s our north star. Everything we do is guided by the goal of inducing or bringing about the feeling of Ugga.” This intentional focus on guest experience—creating moments of happiness and engagement—has become essential for owner-operator hospitality brands seeking to stand out and foster guest loyalty.

From Accidental Host to Owner-Operator: Building the Foundation

Starting in Short-Term Rentals (2017–2025)

Carrie’s journey began in 2017, transitioning from a corporate career to hospitality almost by accident. “Like probably 95% of people I hear on podcasts, we fell into it accidentally,” she recalls. What started as a simple house-flip project quickly evolved into a passion for hospitality. Carrie discovered a love for design, hands-on work, and above all, guest satisfaction. “I realized I had a true passion for hospitality and for creating moments of happiness for our guests,” she shares. The positive feedback from guests—“Getting feedback like, ‘This is the best vacation we’ve had in a long time; we really connected,’ was something I wanted to experience over and over again”—solidified her commitment to the industry.

Owner-Operator Model in 2025

In 2025, the owner-operator model remains a powerful approach for those scaling a short-term rental business. Carrie notes, “We are owner-operators. We don’t manage properties for anyone else, only our own.” This model allows for complete control over vision, strategy, and guest experience. Carrie was determined to build something of her own: “After 22 years in corporate life, executing someone else’s vision, I wanted something that was mine.”

She adds, “I didn’t want to have to negotiate with other owners to align them with my vision for the guest experience.” This direct ownership approach ensures consistency, quality, and the ability to adapt quickly to market changes.

Intentional Growth: Scaling from One to Six Properties

Early Growth and Investment Decisions

The early years of Chalet’s Hygge's' growth were marked by rapid, sometimes unplanned, expansion. “When we bought the first property, we quickly bought the second within six months, which was unplanned,” Carrie explains. “My husband’s investor mindset came in—he saw a good opportunity and wanted to act, while I wanted to make sure everything penciled out perfectly.”

This balance between value-driven investment and hospitality focus became a hallmark of their short-term rental growth strategies.

A critical component of their scaling strategy was defining a clear “buy box”—criteria for location, budget, and renovation scope. Carrie notes, “We always looked for properties that needed significant renovation, as we could buy at a discount and immediately add equity through improvements.” This approach allowed them to maximize returns and create unique, design-forward spaces that resonated with guests.

Community-Driven Expansion and Renovation

Community connections played a pivotal role in Chalet’s Hygge's' expansion. Many properties were acquired through local networks, with neighbors reaching out directly. Renovation was a constant theme: “With the exception of the second property, all needed major renovations, sometimes down to the studs,” Carrie shares. These extensive projects required patience and forced a deliberate, measured pace of growth. “The renovations forced us to scale slowly, as each property required significant time and effort.”

The onset of the COVID-19 pandemic in 2020 dramatically shifted the market. By July 2020, Chalet’s Hygge had acquired its sixth property, launching it in early 2021. As of 2025, this slow, intentional approach to scaling—grounded in community relationships and value-add renovations—remains a best practice for owner-operators navigating a competitive landscape.

Operational Excellence: Streamlining for Scale

Building Efficient Teams and Systems

Operational efficiency is crucial for scaling a short-term rental business in 2025. Carrie highlights the benefits of geographic concentration: “Having all our properties together made it easy to establish operating procedures.” By centralizing operations, she was able to build a dedicated cleaning and operations team. “Managing one team for all properties, rather than different teams in different locations, streamlined everything,” she explains. Standardizing amenities, linens, and inventory across all rentals further enhanced consistency and reduced operational headaches. “Standardizing operations and working with one team reduced stress and ensured properties were always ready for guests.”

This focus on operational efficiency in rentals allowed Chalet’s Hygge to deliver a consistently high-quality guest experience, as reflected in their 4.97 Airbnb rating with over 500 reviews as of 2025.

Navigating Regulations and Market Trends

Understanding and adapting to short-term rental regulations in 2025 is a non-negotiable for sustainable growth. Carrie emphasizes, “Location is absolutely critical. Knowing the right area for short-term hospitality is essential.” Quebec, where Chalet’s Hygge operates, has had short-term rental regulations for two decades, providing a stable environment for investment. “Quebec has had short-term rental regulations for 20 years, and our municipality had implemented its own rules,” she notes. This regulatory stability, combined with careful market analysis, allowed them to double down on a proven area: “We found an area that worked, proved it could cash flow, and decided to double down.”

As property prices have risen and market dynamics shifted in 2025, regulatory certainty and market research remain central to successful hospitality investment trends.

The Leap to Boutique Motel Ownership in 2025

Transitioning from Rentals to Hospitality Venues

Transitioning from short-term rentals to boutique motel operations represents a significant leap in scale and complexity. Carrie describes the shift: “Running a motel is very different from running short-term rentals. The operations are more intense, with much shorter stays and different guest expectations.” Motels require higher operational standards, more frequent turnovers, and a new level of guest communication, including the resurgence of phone bookings.

Carrie’s advice for owner-operators is clear: “Thoughtful scaling is something I definitely recommend for owner-operators.” The deliberate, step-by-step approach that worked for short-term rentals proved invaluable when adapting standard operating procedures for the 17-room motel.

Renovation and Repositioning Strategy

A major part of scaling into boutique motel operations is reimagining the guest experience. “Our business case was to elevate the motel both aesthetically and operationally, and six months in, we’re exceeding all our KPIs thanks to upgraded rooms and improved operations,” Carrie reports. The opportunity to infuse each room with unique design elements is a distinct advantage: “In a house, you maintain a consistent theme, but with a motel, you can add unique touches to each room.”

Chalet’s Hygge is pioneering hybrid hospitality concepts—transforming an old restaurant into a shared kitchen and co-working space, adding fire pits, and featuring local products. These innovations align with 2025 short-term rental design trends and respond to the evolving expectations of modern travelers seeking both comfort and community.

Distribution, Technology, and Direct Booking in 2025

Channel Management and Booking Strategies

Effective distribution and direct booking strategies are more important than ever in 2025. “About 70% of our bookings are direct. For me, Airbnb and Vrbo are just marketing platforms—like putting up a billboard,” shares Carrie. This approach maximizes revenue and guest loyalty while leveraging OTAs (Online Travel Agencies) for visibility.

Boutique motel operations require a different channel mix. “The motel is 60% Booking.com, 20% from a tour operator, and the remaining 20% from walk-ins, phone calls, Google, and our old website,” Carrie explains. OTAs remain vital for hotels and motels, but direct booking strategies are gaining ground as technology improves.

Property Management Systems and Tech Stack

Integrating property management systems for rentals and motels presents unique challenges. Carrie points out, “We can’t use the same PMS for both sides of the business—they require different platforms.” While a unified tech stack remains an aspiration, operational realities in 2025 require separate systems for short-term rentals and boutique motels. “Once the motel’s tech stack is in place, like we have for the short-term rentals, I can focus on a direct booking strategy,” she adds.

Investing in the right property management systems for rentals and motels is essential for streamlining operations, managing distribution, and supporting future growth.

Team Structure and Operational Challenges

Managing Teams Across Multiple Locations

As the business expanded, managing teams across geographically distant properties became a necessity. “We have two different teams because the properties are four hours apart,” Carrie explains. While on-the-ground operations are separate, she is “building out a shared back-of-house team for both businesses—bookkeeping, marketing, website development, and so on.” This hybrid approach balances operational efficiency in rentals and motels with the realities of location and scale.

Lessons learned from these operational compromises inform best practices for owner-operators in 2025, emphasizing the importance of clear communication, standardized procedures, and strategic delegation.

Future Growth and Hospitality Trends for 2025

Expansion Plans and Diversification

Looking ahead, Chalet’s Hygge continues to balance ongoing renovations with ambitious expansion plans. “We’ve had this motel for six months, renovated four out of 16 rooms, with 12 to go and a major common space still to renovate. I’m already shopping for the next property,” Carrie admits. The creation of an umbrella brand, Experiences Hygge, reflects a broader vision: “We recently built an umbrella company called Experiences Hygge, which will include our short-term rental channel, motel channel, and potentially other ventures.”

Boutique motels are especially appealing in 2025 for their cash flow stability and regulatory security. Carrie is also exploring new hospitality concepts, such as destination spas, that align with the Hygge philosophy of wellness and joy in simple moments.

Industry Outlook and Advice for Owner-Operators

For those seeking to scale a short-term rental business in 2025, Carrie offers actionable insights:

• Intentional Growth: Scale at a pace that allows for operational excellence and brand consistency.
• Operational Excellence: Invest in efficient teams, standardized systems, and the right property management systems for rentals and motels.
• Guest-Centric Design: Focus on creating memorable, unique guest experiences that foster loyalty and drive direct bookings.
• Flexibility and Creativity: Embrace new hospitality trends, adapt to regulatory changes, and remain open to diversification.

Carrie’s perspective is clear: “If the cash flow isn’t sufficient as an operator, we consider whether it’s better to invest that capital elsewhere for long-term growth.” She also notes, “Today’s traveler is looking for mid-length stays and unique experiences.” Ultimately, “You’re free to craft and architect the business you want.”

By following these strategies and learning from real-world examples like Chalet’s Hygge, property owners and operators can confidently navigate the challenges and opportunities of scaling a short-term rental business in 2025.