By almost all performance metrics, COVID-19 is affecting the short-term rental sector less than the overall hotel industry, according to a recent report from the Highland Group. Year to date through April 2020, compared to the same period in 2019, short-term rental demand and revenues declined 15 percent and 22 percent, respectively. The corresponding declines for the overall hotel industry were 32 percent and 35 percent, according to STR. In 20 of the 50 largest markets, short-term rental demand increased year to date through April 2020.
“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,” says Mark Skinner, partner at the Highland Group.
Meanwhile, average occupancy for economy extended-stay hotels clocked in at 73.8 percent in May, according to the report. While this metric was down 5.3 percent compared to May 2019, it is 40 percentage points higher than the 33.1 percent STR recorded for the overall hotel industry. RevPAR for the segment was down 11.4 percent over the same period compared to more than 70 percent for the overall hotel industry.
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