Airbnb is directly competing with hotel stock in New York City, offering short term rentals for $256, compared to the current ADR of $289 for hotel rooms, according to a new study released by STR Global.
The hospitality analytics firm observed trends in Brooklyn, Manhattan, Queens and Staten Island, with the Airbnb sample narrowed to units available for at leave five days. STR also excluded units that had a stay minimum of more than three nights.
STR showed 8,615 Airbnb listings in the five boroughs, compared to 105,635 hotel rooms available. In four of five boroughs, Airbnb inventory competitive with traditional hotel rooms made up between 4% and 6% of the market. However, in Brooklyn, Airbnb room share of the same kind accounted for 38% of the market.
On average across the boroughs, hotel room rate was US$289. Rate of Airbnb units competitive with traditional hotel rooms was US$256.
According to Jan Freitag, STR’s senior VP for lodging insights, “entire unit rentals are squarely aimed at competing with hotel rooms.
“Airbnb units are a material addition to the New York City hotel room inventory,” Freitag said. “Hotel owners and managers have to be aware that the competition in their neighborhood is shifting and changing. Airbnb inventory is here and here to stay, and we will continue to monitor and report on trends and data as they become available.”
The charge varied widely by submarket. For the four boroughs with comparative data available, STR showed the following for hotel ADR: Brooklyn (US$184), Manhattan (US$315), Queens (US$147) and Staten Island (US$129).
Airbnb listing price for units competitive with traditional hotels was: Brooklyn (US$200), Manhattan (US$292), Queens (US$157) and Staten Island (US$342).
