Short Term Rentals – Threat or opportunity?

Data

More of the STR inventory is becoming professionalized, so the experience for consumers is closer to that of a hotel. Some hotel brands are also dabbling in the space. Below are some of the key points I shared.

Professionally managed STR properties are now 71% of hosts.

In some locations the inventory of STRs is at or above the inventory of hotels.

The professional operators have seen a larger share of the revenue growth for STRs.

Key Takeaways from our Discussion

• Many times, the markets are different between those seeking hotels and those seeking STRs. This can be generational preferences but is mostly situational. Business and short-term travelers generally prefer hotels, while longer term and larger groups often prefer STRs.
• STR cleaning and other hidden fees are making hotels more competitive. Legislation that requires hotels to have transparent pricing doesn’t apply to STRs, making the STRs more of a risk for consumers.
• Many consumers appreciate the standards in cleaning, service, fire, and other safety measures that hotels offer over the largely unregulated STR space.