Using data from STR and Inside AirBnb, we set out to determine if AirBnb had an effect on Average Daily Rates (ADR) of branded hotels in the New York City area. We also analyzed rate and density of AirBnb and branded hotels by neighborhood.
7. NYC hotel industry snapshot (2014)
56.4mm
visitors
$9.08bn
in revenue
99,250
rooms
Source: STR Data, Hotel News Now, NYC & Co
391
hotels
8. Average supply of hotel rooms in NYC per year
Source: STR Data, Hotel News Now
2008 - 2014
3.8% CAGR
1987 - 2008
1.0% CAGR
Hotel room supply grew almost 4
times as fast on average for the
‘08-’14 period when compared to
’87-’07
9. NYC Hotel Density
Concentration around
midtown
Hell’s Kitchen
144 Hotels, 22% of total hotels,
38% of available rooms
Source: STR Data
11. - 0.1MM 1MM 2MM
10MM
18MM
39MM
79MM
2008 2009 2010 2011 2012 2013 2014 2015
• Average
number of
nights booked
History of AirBnb
Sources: Wall Street Journal, Funders and Founders
AirBnB was
founded
$7.2 mm
Series “A”
funding
Ashton
Kutcher
invests
Reaches
200,000
listings
$10 bn
valuation
12. Neighborhood comparison
Average price Number of Listings
Source: AirBnb data scrape, November 2015
Tribeca has the highest average daily AirBnB room rates, but one of the
lowest number of properties available for guests to stay
15. Industry metrics
$272 mm
$9,080 mm
$165
$309
12,446
listings
99,250 hotel rooms
97% 89%
3%
11%
Data period: April 2015 TTM, Source: STR, InsideAirBnb, Hotel News Now
*projected ADR for 2015 based on growth since 2009
Revenue
Number of
available rooms
Average Daily Rate
16. Market share
Share of total occupied rooms in NYC
2012 2013 2014
Share of total annual rooms revenue in NYC
Data period: April 2015 TTM, Source: Hotel News Now
96.9% 95.0% 94.6%
3.1% 5.0% 5.4%
2012 2013 2014
98.4% 97.3% 97.1%
1.6% 2.7% 2.9%
AirBnb has been slowly growing its NYC market share
17. 2008-2015 NYC Hotel ADR
Q3/Q4 ‘15 values are projections based on historical monthly trends
Source: STR Data
Monthly average ADR
2008: $275.4
2015: $261.3
18. 2008-2015 NYC Hotel Occupancy
Q3/Q4 ‘15 values are projections based on historical monthly trends
Source: STR Data
Monthly average occupancy
2008: 81.6%
2015: 85.1%
19. 2008-2015 NYC Hotel RevPAR
Q3/Q4 ‘15 values are projections based on historical monthly trends
Source: STR Data
Monthly average RevPAR
2008: $225.1
2015: $224.6
20. 2010-2015 NYC hotel supply vs demand
Q1 2010
Q3/Q4 ‘15 values are projections based on historical monthly trends
Source: STR Data
Q4 2015
Monthly average supply | demand
2010: 2.8M | 2.3M
2015: 3.4M | 2.9M
21. Across various measures, the hotel industry
has not been suffering
ADR
Occupancy
RevPar
Demand > Supply
26. Hotel revenue from 1987 through AirBnB
launch in 2008, with forecast through 2014
Projected vs. actual
27. Takeaways
• It appears that the NYC hotel market hasn’t suffered as much (if, at
all) as critics have claimed
• Various KPIs show improvement for the hotel industry
• Demand for hotel rooms in NYC has been increasing, but demand
for AirBnb has been growing faster
• AirBnb’s NY customer base may not be the same as the core NY
hotel customer
• Policymakers should not change laws based on the claims of the hotel
industry. Doing so may dissuade potential visitors who cannot afford
hotels, hurt constituents who need supplemental income, and destroy
economic value from the booming hospitality sector
Source: NYC Go
30. Limitations
• Quality Ratings: AirBnb ADR does not reflect quality of room night
• Might not be the same consumer
• Format of Airbnb (house vs. apartment vs. hotel room)
