More than 10 years ago, the short-term home rental industry began to shapeshift with the birth of Airbnb.
The technology company has quickly grown from a small peer-to-peer home-sharing platform into a virtual behemoth with more rooms than any hotel company on the planet.
Today, Airbnb has more than 4 million listings in nearly 100,000 cities, and two million people stay in an Airbnb-listed home every night.
In this episode, we examine the impact of Airbnb’s growth on U.S. hotel performance. It’s big topic, so we broke it down into two parts.
In this first installment, we talk to Makarand Mody, an assistant professor at Boston University’s School of Hospitality Administration and co-author of the academic paper on Airbnb’s disruptive impact in key hotel markets. We hear from Hans Detlefsen of Hotel Appraisers and Advisors, which studied Airbnb’s market share of U.S. lodging demand, and from Thomas O’Shaughnessy, head of research at Clever Real Estate, an online agency. We also share information provided by Airbnb, which declined to provide someone to interview.
Hotel appraisers and brokers expect distressed assets to come to market as the pandemic recession continues into 2021. Analysts say billions of dollars in private equity are waiting in the wings to acquire hotels underperforming as a result of the coronavirus crisis. But pricing will be different than in previous economic downturns. While a transaction may be distressed, it will not necessarily reflect distress pricing,” said Daniel Lesser of LW Hospitality Advisors. Long Live Lodging explores the state of hotel values as well as what may lie ahead with regard to transactions in 2021 as the spread of COVID-19 continues to stifle lodging performance. This report is part of our ongoing coverage of the coronavirus crisis and its impact on the hospitality industry.
Global business travel is a $1.4 trillion industry. The Global Business Travel Association calculates the coronavirus pandemic in 2020 resulted in a loss of $113 billion in business travel spend in hotels, airlines and other sectors of the travel industry. But all is not lost. GBTA, industry analysts and travel management companies see some green shoots of hope for 2021 as the COVID-19 vaccine rolls out and corporations put some of their people on the road again. This report is part of Long Live Lodging’s ongoing coverage of the coronavirus crisis and its impact on the hospitality industry.