DiscoverReal Estate EspressoCBRE Report on Short Term Rentals
CBRE Report on Short Term Rentals

CBRE Report on Short Term Rentals

Update: 2020-02-04
Share

Description

On today’s show we’re talking about a comprehensive look at short term rentals in a recent report from commercial brokerage house CBRE. This 52 page report outlines some major findings on the impact of short term rentals on the hospitality industry. The STR segment is also undergoing significant change as it matures.



  • The supply penetration rate of short-term rental      (STR) units to traditional hotel units reached 10.4% in 2019 and is      expected to hit 12.2% this year with the addition of more than 100,000 net      new units.

  • STR supply grew by 26% in 2019, down from      39% in 2018 and after seven years of exponential growth (100% to 500%)      since 2009. Growth rates are expected to slow further to 19% in 2020.

  • Recent growth for STRs has been primarily      in suburban and rural areas. Units in urban areas make up only 21% of      total supply, down from more than 45% in 2014.

  • Los Angeles remained the largest STR      supply market in 2019 after overtaking New York in 2018. Los Angeles, New      York and Orlando together accounted for about 12% of total STR supply in      the U.S. last year.

  • Guests consistently cite price and      location as their top reasons for choosing alternative accommodations.


Branded apartment/hotel models such as Sonder, Stay Alfred, Lyric and Domio depend on the pricing arbitrage between monthly apartment rent and nightly STR rates.

Many companies have entered the market, primarily in U.S. urban areas.


If we examine where these units are located and their market penetration, we find that nearly 20% of the resort market is made of STR with 80% being made up of more traditional hotel product. 13% are urban, 10.5% are small metro and 6.5% are suburban or airport.

Comments 
loading
00:00
00:00
1.0x

0.5x

0.8x

1.0x

1.25x

1.5x

2.0x

3.0x

Sleep Timer

Off

End of Episode

5 Minutes

10 Minutes

15 Minutes

30 Minutes

45 Minutes

60 Minutes

120 Minutes

CBRE Report on Short Term Rentals

CBRE Report on Short Term Rentals

Victor Menasce