US: Global business consulting firm The Highland Group and AllTheRooms Analytics, a provider of short-term rental and Airbnb data and analytics, have partnered to publish a report on the short-term rental sector in the United States, which shows that the sector has been outperforming the hotel industry during the Covid-19 pandemic.
By almost all performance metrics in the join report, Covid-19 is impacting the short-term rental sector less than the overall hotel industry.
Year-to-date through April 2020 compared to the same period in 2019, short-term rental demand and revenues declined 15 per cent and 22 per cent respectively. The corresponding declines for the overall hotel industry were 32 per cent and 35 per cent, according to hotel industry data intelligence firm STR, while short-term rental demand in 20 of the 50 largest markets increased year-to-date through April 2020.
The Highland Group partner Mark Skinner said: “Focusing on longer-term guests and minimal physical contact with renters are key factors resulting in relatively strong performance for the short-term rental sector.”
The US Short-Term Rental Market Report 2020 provides a comprehensive outlook on short-term rental supply, demand revenues and length of stay.
Some of the key takeaways from the report included:
- Short-term rental unit supply more than doubled to 87 million room nights from 2017-19 and is up 16 per cent year-to-date in 2020
- Nationally demand is down 15 per cent year-to-date but 20 markets report increased demand
- Gross annual revenues of $8.7 billion in 2019 are down 22 per cent year-to-date but 12 of the top 50 markets report increased revenues
- Jacksonville [Florida], Grand Rapids, Minneapolis, Tampa and Rochester report highest revenue growth year-to-date
- Urban located one-bedroom units with a one-six-night stay achieved the highest occupancy at 53.6 per cent in 2019
- Suburban located one-bedroom units with a one-six-night stay achieved the highest occupancy at 28.9 per cent in April 2020
Skinner added: “Airbnb’s recommendation that its landlords pivot to longer-term guests was a good one given the relatively strong performance of short-term rentals and extended-stay hotels.”
The Highland Group provides consulting services to developers, franchisors, investors, lenders, and others with interests in the lodging industry.
For more information on the report, visit The Highland Group website here.