1-Bedroom Soho Airbnb Case Study | StayinLondon
See how a 1-bedroom Soho apartment generates £61,500+ annual gross revenue at 75% occupancy and £225 ADR compared with conventional long-term letting.
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Location & Market Context
Short-Term vs Long-Term Rental Case Study Property: 1-bedroom apartment
Location: Soho, London
Rental strategy: Short and medium-term letting
Average Daily Rate (ADR): £225
Average occupancy: 75%
Estimated annual gross revenue: £61,500+
Property Overview
This one-bedroom apartment is located in the heart of Soho, one of London’s most recognisable and centrally located neighbourhoods.
Surrounded by the West End, Covent Garden, Mayfair and Fitzrovia, the property benefits from exceptional access to London’s restaurants, theatres, nightlife, shopping and major employment districts.
The objective was to assess how a professionally managed short and medium-term rental strategy could perform compared with placing the apartment on the conventional long-term rental market.
Rather than focusing purely on maximising occupancy, our approach is designed to optimise the combination of nightly rate, occupancy and length of stay.
With an average daily rate of approximately £225 and average occupancy of 75%, the property can generate approximately £61,500 in annual gross accommodation revenue.
Soho occupies a unique position within London’s short-term accommodation market.
Located in the centre of the West End, the neighbourhood is within walking distance of Oxford Street, Regent Street, Carnaby Street, Leicester Square, Covent Garden, Chinatown and many of London’s leading theatres.
This highly central location creates strong demand from guests who value being able to explore much of Central London on foot.
The area attracts a diverse range of guests, including:
- international leisure travellers;
- couples visiting London for city breaks;
- theatre and entertainment visitors;
- corporate and business travellers;
- professionals temporarily working in Central London;
- guests working in the creative, media and entertainment industries; and
- visitors requiring accommodation for several weeks or months.
Soho’s combination of tourism, entertainment and business demand makes it particularly well positioned for flexible accommodation.
Unlike locations that depend heavily on one type of traveller, Soho can attract different guest profiles throughout the year, supporting both healthy occupancy and attractive nightly rates.
Our Rental Strategy
For a property in such a central location, the objective is not simply to maximise the number of occupied nights.
StayinLondon uses a flexible rental strategy designed to maximise overall revenue while maintaining sustainable occupancy.
The apartment is marketed across multiple booking channels rather than relying exclusively on Airbnb. This increases exposure and allows the property to reach different guest segments depending on the purpose and duration of their stay.
Dynamic pricing is used to adjust nightly rates according to factors including:
- seasonal demand;
- booking lead time;
- day of the week;
- length of stay;
- major London events;
- remaining availability; and
- booking pace.
During high-demand periods, nightly prices can be increased to take advantage of Soho’s premium Central London location.
During quieter periods, pricing and minimum-stay requirements can be adjusted to encourage bookings and reduce unnecessary gaps between reservations.
For this property, this strategy produces an average daily rate of approximately £225 while maintaining occupancy of around 75%.
Short-term Airbnb vs long-term let — side-by-side
At 75% occupancy, the apartment is occupied for approximately 274 nights per year.
Using the annual calculation:
365 nights × 75% occupancy × £225 ADR = approximately £61,594 annual gross accommodation revenue.
For comparison, if the same apartment achieved approximately £3,000 per calendar month through a conventional long-term tenancy, annual gross rental income would be approximately £36,000.
On a gross revenue basis, the flexible letting strategy therefore generates approximately £25,600 more per year, representing around a 71% uplift compared with an assumed £3,000 pcm conventional tenancy.
It is important to distinguish between gross revenue and net profit.
Short and medium-term accommodation typically involves additional operating expenses, including management fees, utilities, cleaning, linen, maintenance and booking platform costs. These expenses should be considered when comparing the owner’s final net return under each strategy.
However, the difference in gross revenue provides additional headroom to absorb these costs while potentially producing a stronger overall return.
Key advantages
Strong Central London Demand
Few London neighbourhoods can match Soho for location.
Its position at the centre of the West End creates demand from both domestic and international visitors who value being within walking distance of London’s major attractions, restaurants, theatres, nightlife and shopping districts.
Higher Gross Revenue Potential
Flexible nightly pricing allows the apartment to capture the value of Soho’s strong accommodation demand.
At £225 ADR and 75% occupancy, estimated annual gross accommodation revenue reaches approximately £61,594, compared with £36,000 from an assumed £3,000 pcm long-term tenancy.
This represents approximately £25,594 in additional gross revenue per year.
Dynamic Pricing
Unlike a conventional tenancy where the monthly rent is generally fixed, flexible accommodation allows nightly rates to respond to changing market conditions.
Rates can be increased during weekends, peak travel periods, major London events and other high-demand dates while being adjusted strategically during quieter periods to protect occupancy.
Diversified Guest Demand
Soho’s location means demand is not limited to traditional leisure tourism.
The property can also attract corporate guests, business travellers, relocation clients and professionals requiring temporary accommodation in Central London.
Combining shorter, higher-rate reservations with medium-term bookings can help maintain occupancy and reduce unnecessary gaps in the calendar.
Greater Owner Flexibility
Flexible letting can provide owners with greater control over the future use of their property.
Subject to existing bookings and applicable regulations, the rental strategy can be adapted if the owner wishes to occupy the apartment, sell the property or change how it is rented.
Professional Property Management
StayinLondon manages the operational requirements associated with flexible letting, including:
- listing creation and optimisation;
- multi-channel distribution;
- dynamic pricing and revenue management;
- booking management;
- guest communication and vetting;
- check-in coordination;
- professional cleaning and linen;
- maintenance coordination; and
- ongoing property oversight.
For the owner, this provides access to the potential benefits of short and medium-term letting without having to personally manage day-to-day guest operations.
Case study outcome
This Soho case study demonstrates the revenue potential of professionally managed flexible letting in one of London’s strongest short-term accommodation locations.
At an average daily rate of £225 and average occupancy of approximately 75%, the one-bedroom apartment generates estimated annual gross accommodation revenue of approximately £61,594.
Compared with an assumed conventional rental value of £3,000 per month, this represents approximately £25,594 in additional gross annual revenue – an uplift of around 71%.
The advantage is not purely financial.
Soho benefits from a diverse mix of leisure, corporate and medium-term demand, while flexible letting allows pricing and availability to respond continuously to changes in London’s accommodation market.
For the right property, the combination of dynamic pricing, multi-channel distribution and professional property management can therefore provide a compelling alternative to conventional long-term letting.
Own a Property in Soho?
If you own an apartment or house in Soho, StayinLondon can prepare a tailored rental projection based on your property’s exact location, size, condition and amenities.
We can compare the potential returns from short-term, medium-term and conventional long-term letting and recommend the most appropriate strategy for your property.
Request a free, no-obligation rental valuation and discover what your Soho property could earn.
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