The American Hotel & Lodging Association (AH&LA)—a national association representing all segments of the U.S. lodging industry—has released a study conducted by researchers at Penn State University’s School of Hospitality Management analyzing the rise of commercial activity on Airbnb.
The analysis tracks data collected during a 13-month period (September 2014 through September 2015) in 12 of the nation’s largest metropolitan statistical areas (MSAs): New York, Chicago, Los Angeles, Philadelphia, Miami, Houston, Dallas, Phoenix, San Antonio, San Diego, San Francisco, and Washington, D.C.
“From Air Mattresses to Unregulated Business: An Analysis of the Other Side of Airbnb” focuses on hosts in these top markets who rent multiple units, and the length of time they are renting their units.
Among the key findings in the report:
Nearly 30 percent ($378 million) of Airbnb’s revenue in these markets came from those who are designated full-time operators, with rentals available 360 days a year. Each of these operators averaged more than $140,000 in revenue during the period studied.
The cities with the largest number of full-time operators include New York and Miami on the East Coast and Los Angeles and San Francisco on the West Coast.
Individuals or entities renting out two or more residential properties on Airbnb account for 17 percent of hosts in the twelve cities studied, and this growing segment of multi-unit operators drives nearly 40 percent of the revenue in those markets—more than half a billion dollars a year.
“The study shows an explosion in activity among multi-unit hosts and the rise of full-time operators in each of the 12 markets we analyzed,” says John O’Neill, professor and director of the Center for Hospitality Real Estate Strategy at Pennsylvania State University, who directed the research. “Operators renting out three or more units represent a disproportionate share of revenue, with only 7 percent driving more than $325 million in the period studied.”
The full report is available for download on the AH&LA website.
