Short-term rental supply in key hotel markets is up 24%

Across the key hotel markets we've mapped, short-term rental supply is up 24% at the end of 2023 versus 2022. Riyadh, London, Mumbai, Sydney and Delhi have shown the greatest growth, each exceeding 40% increase in short-term rental properties.

Regionally, supply has increased most in EMEA markets (31%), followed by Asia Pacific (19%) and Latin America (18%), with North American destinations seeing least growth on average (9%). As short-term rental supply grows, so does its competitive relevance. It's important to have visibility over your complete competitive landscape, and reflect it in your strategy.

Short-term rental prices are growing faster than hotels

While the average change in rates for Q4 year over year was +16% across all of the markets we looked at, hotels averaged at 11% growth compared with 21% in 1 bedroom short-term rentals. This indicates that the gap in price points between hotel and STR is closing.

...but occupancy on the books has grown more in hotels

Occupancy on the books for Q1 2024 is 17% higher than it was for Q1 2023 in hotels. In short-term rentals meanwhile, it was 6% lower. It shouldn't be overlooked that in line with its longer booking window, the short-term rental sector still shows more occupancy on the books at 28% on average compared with 17% for hotels, and also that short-term rentals saw a large increase in occupancy in 2023.

Review scores are higher for independent accommodations, and for short-term rentals

Here we take a look at booking.com review scores, standardised out of 5, across hotels and short-term rentals. Hotels are further grouped as independent or chain, while short-term rentals are grouped by professionally managed or private properties.

View the complete article on Lighthouse.

by LIGHTHOUSE | HNR Hotel News