The Sharing Economy Checks In: An Analysis of Airbnb in the United States

Implications on Traditional Hotel Development and Market Performance Going Forward


EXECUTIVE SUMMARY

The sharing economy has become a prominent though not well understood economic phenomenon over the past several years. Airbnb is the market leader as it relates to the temporary accommodations industry. CBRE Hotels’ Americas Research compiled select information from STR, Inc. and Airdna, a company that provides data on Airbnb, for hundreds of U.S. markets to assess the relevancy of this sharing platform to the traditional hotel industry.

Airbnb’s presence in key markets throughout the U.S. is growing at a rapid pace, with users spending $2.4 billion on lodging in the U.S. over the past year, according to analysis from CBRE Hotels. Over the study period of October 2014 – September 2015, more than 55 percent of the $2.4 billion generated was captured in only five U.S. cities (New York, Los Angeles, San Francisco, Miami and Boston), represents a significant portion of the lodging revenues in these markets.

CBRE Hotels compiled select information for hundreds of U.S. markets to assess the relevancy of this sharing platform to the traditional hotel industry. From this data, the firm has developed an Airbnb Competition Index. This measure incorporates a comparison of Airbnb’s Average Daily Room rates (ADR) to traditional hotel ADR’s; the scale of the active Airbnb inventory in a market to the supply of traditional hotels, and the overall growth of active Airbnb supply in that market, into a measure of potential competition. New York was identified as the number one domestic market at risk from the growth of Airbnb, with an Airbnb Competition Index of 81.4, followed by San Francisco, Miami, Oakland and Oahu.

Reports detailing the estimated performance of Airbnb facilities covering 59 U.S. cities, encompassing 229 submarkets, may be found at https://store.pkfc.com/airbnb-insights

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FOR MORE INFORMATION REGARDING CBRE HOTELS’ AMERICAS RESEARCH, PLEASE CONTACT:

​R. Mark Woodworth ​Jamie Lane
​Senior Managing Director ​Senior Economist
​CBRE Hotels’ Americas Research ​CBRE Hotels’ Americas Research
​mark.woodworth@cbre.com ​+1 404 809 3950
jamie.lane@cbre.com
​Follow Jamie on Twitter: @Jamie_Lane

ABOUT CBRE HOTELS’ AMERICAS RESEARCH

CBRE Hotels’ Americas Research is a CBRE company that prepares a variety of forecast and benchmarking reports, as well as maintains an extensive database of hotel income statements. These reports and data provide the foundation for strategic planning by all who have an interest in hotel property financial performance. Additional information can be found at www.cbrehotels.com. Additional reports are available for purchase for most U.S. markets at store.pkfc.com.

ABOUT AIRDNA

Airdna provides data and analytics to vacation rental entrepreneurs and investors. By tracking the daily performance of over 400,000 listings across 5,000 cities worldwide, Airdna presents intelligence reports that feature occupancy rates, seasonal demand, and revenue generated by short-term rentals. This information - once only available to corporate hotel chains - is now accessible to the everyday homeowner and real estate investor. Additional information about Airdna can be found at airdna.co.