US: Short-term rentals in three key US cities showed substantial month-to-month performance growth and posted higher occupancy than hotels in the market, according to October 2020 data from data benchmarking and analytics provider STR.
Building on STR’s hotel performance database, Philadelphia, Nashville and Miami are the first three US markets where the company has expanded its benchmarking offerings via a pilot study. Included in the STR short-term rental sample are both multifamily and single-family short-term rentals.
October 2020 short-term rental performance, month-over-month comparisons:
- Occupancy: 70.9 per cent [+26.4 per cent]
- Average daily rate [ADR]: US$169.97 [+5.3 per cent]
- Revenue per available room [RevPAR]: US$120.51 [+33 per cent]
Philadelphia’s hotel industry recorded a 49.2 per cent occupancy level for the month.
- Occupancy: 58.6 per cent [-2.5 per cent]
- ADR: US$133.08 [+24.3 per cent]
- RevPAR: US$78.05 [+21.2 per cent]
Although down month over month, Nashville’s short-term rental occupancy came in well above hotel occupancy in the market, which was up 13.1 per cent to 44.1 per cent.
- Occupancy: 83.3 per cent [+2.1 per cent]
- ADR: US$117.89 [+12.9 per cent]
- RevPAR: US$98.24 [+15.3 per cent]
October occupancy for Miami hotels came in at 41.6 per cent.
Four months ago, a joint global analysis by STR and AirDNA highlighted in preliminary findings that short-term rentals had outperformed traditional hotels across 27 global markets during the pandemic, reporting significantly higher occupancy rates between March 2019 and the week ending with 27 June 2020.
Another joint report in August showed that rentals were weathering the pandemic better than hotels in 27 global markets, comparing the impact of the coronavirus crisis on hotels and short-term rentals from January 2019 through to 27 June 2020.
Though both accommodation types were badly affected during the worst weeks of the pandemic, as the report highlighted, the features that differentiate short-term rentals from hotels – such as full-service amenities, living space, larger properties and inventory in more remote destinations – have proven to be vital assets during the pandemic. Guests were looking for accommodation where they could safely socially distance and comfortably stay for longer periods of time, as data from AirDNA show that length of stay increased by 58 per cent during the pandemic.
October 2020 data from STR also revealed that the short-term rental sector in London in England reached its highest occupancy level since February.
Occupancy for the sector last month was 62.4 per cent, an increase of 5.9 per cent from September [58.9 per cent], and its absolute level was noticeably higher than the 29.2 per cent occupancy level for hotels in the market.
Average daily rate [ADR] for short-term rentals in London dropped by 10.3 per cent to £97.99, which was an overall steeper decline than its hotel equivalent in the market, coming in at -4.4 per cent month over month to £89.49.
London is the first international short-term rental market where STR is expanding its benchmarking offerings via a pilot study. Like in the United States, multi-family and single-family short-term rentals are included in STR’s short-term rental sample.
Founded in 1985, STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. The company maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore.