US: Vacation rental network RedAwning has published an in-depth Market Report which delves into alternative accommodation trends that are emerging across New York City.
The report particularly highlights the significant impact that corporate and short-term housing demand has had on the market in Manhattan, Brooklyn and Queens.
It reports that the booking value of hotels showed a modest combined annual growth rate of three per cent between 2014 to 2018 while in the same period, short-term rentals had a CAGR (compound annual growth rate) of 12 per cent, from $64 billion to $101 billion. According to the report, experts are predicting that this CAGR statistic will rise to 13 per cent within the next four years.
RedAwning’s VP of market development, Johnathan Robinson, said: “Inventory and occupancy rate growth makes it pretty clear that NYC has not lost its status as a top global destination. What’s interesting is to see the majority of travellers, whether business or leisure, turning to corporate housing and timeshares as their accommodation type of choice.”
Furthermore, the published report says the corporate housing market saw a 13 per cent rise to $3.62 billion in 2017 in its fifth consecutive year of growth, according to Highland Group. The number of available housing units across the United States increased by 6.5 per cent to 71,201 and the ADR (average daily rate) was up 7.3 per cent to $161, making it the strongest growth in ADR in twelve years.
Robinson added: “We look forward to seeing continued growth in both RedAwning inventory and booking volume as alternative accommodation demand and supply in this region continue to flourish.”
For more information, download the full report here.