Mark Lomanno, Partner and Senior Advisor at Kalibri Labs, analyzes the impact Airbnb has had on hotel development supply. When looking to develop a new hotel, he says, developers at least need to take pause and consider how alternate accommodations may affect the market and how they might operate differently in peak periods or during a down cycle.
According to Lomanno, the presence of Airbnb is definitely something people are, or should be, evaluating but perhaps haven't completely adjusted their models to account for the influx of supply in accommodations and this newfound demand for alternate accommodations.
He goes on to describe that the effects of Airbnb go beyond just additional supply in the market and that some hotel companies have evolved their brands and developed new hotel concepts.
More information on hotel comparable short-term rental supply in your market is available - click here to learn more.