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.
Lodging Econometrics has tracked the hotel industry since 1998. Its global database includes new-hotel pipelines as well as renovations and brand conversions. Hotel franchisers once eager to launch new brands are focused on converting existing hotels because it’s a faster way to recover revenue lost to the COVID-19 pandemic than through new construction. In Episode 346, Lodging Leaders explores the increasing number of conversions in the U.S. hotel industry and what owners and operators need to consider before repositioning an asset.
In the first few months of the COVID-19 pandemic in the U.S., financiers anticipated a swell of distressed hotel businesses. Some raised rescue funds to respond to what they thought was a pending crisis. Though there are financial rescues taking place, the level of such activity is far below what industry advisers and fund managers expected. Commercial real estate investors positioned to act in the early days of the pandemic held off and are now just beginning to unleash their cash hoards totaling billions of dollars. Episode 345 of Lodging Leaders podcast explores the state of capital investment in the hotel industry.