Study reveals the darker side of Airbnb’s growth from ‘illegal hotels’

Published on : Saturday, March 11, 2017

AHLAThe American Hotel & Lodging Association (AHLA) released a new report that examines the rise of commercial activity taking place on Airbnb nationwide. This study, Hosts with Multiple Units – A Key Driver of Airbnb Growth, reveals that Airbnb’s business is moving even further away from true home sharing: 81% of Airbnb’s U.S. revenue – $4.6 billion – comes from whole-unit rentals (those rentals where the owner is not present during the time of the rental). Airbnb has allowed the growth of “illegal hotels” that are often unregulated properties operating in residential neighborhoods, and as others have pointed out, are disrupting communities, impacting affordable housing and jeopardizing safety and security for guests and neighbors alike.

 

 

The study, conducted by a leading real estate research company CBRE Hotels’ Americas Research and funded by the American Hotel & Lodging Education Foundation, echoes a growing body of research that shows Airbnb “hosts” renting out two or more entire home units are the fastest growing segment of Airbnb’s business in the U.S., generating nearly $2 billion in revenue nationally in 2016, or 40% of Airbnb’s entire-unit national revenue, and 37% of entire-unit revenue in the 13 markets studied (over $700 million). This comprehensive national review of Airbnb operations covers October 2014 to September 2016, with a spotlight on 13 of the nation’s largest markets: Austin, Boston, Chicago, Los Angeles, Miami, Nashville, New Orleans, New York, Oahu, Portland, OR, San Francisco, Seattle, and Washington, D.C.

 

 

What’s more, hosts listing multiple homes for rent are the fastest growing segment of Airbnb’s business. Strikingly, hosts with 10 or more properties are generating a quarter of all multi-host revenue, roughly $175 million in the 13 markets studied. The analysis also indicates this troubling national trend is getting worse, although there are some signs in key markets that stricter short-term rental regulation may be effective at curbing illegal hotel activity.

 

 

Key findings:

Source: AHLA

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