Report: Professional Operators Make A Killing Off Airbnb

A report commissioned by a hotel lobby group will only intensify the growing rift between hoteliers and startup Airbnb. The report from Penn State researchers for the American Hotel and Lodging Association (which can be read here) determined that $378M of Airbnb's total revenuenearly 30%—was generated from "full-time operators" listing rentals year-round.

In Chicago, Airbnb's third-most-profitable domestic market, the numbers are even more striking. Airbnb listings that were offered at least six months out of a year generated 58.3% of the company's local revenue.

The report is being used by the hotel lobbyists to call for tighter regulations on Airbnb listings, while Airbnb says the report is incorrect and was wrong to focus only on operators with long-term listings.

The battle lines were being drawn in Chicago long before the report was released. Geller Investments chief Laurence Geller and Oxford Capital CEO John Rutledge told Bisnow last December that Airbnb was already siphoning reservations from hotels during high-compression dates, and envisioned Airbnb would eventually evolve to include select hotel rooms and be more like Expedia. Airbnb hired former Ald. Will Burns last February as its director of Midwest policy.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Wall Street Impatient For Big Tech Returns On Data Center Spending

As AI Adoption Ramps Up, Half A Million Property Managers Are In The Crosshairs

Treasuries Hover Around 4.7% As Wall Street Questions If Warsh Is A 'Dove In Hawk's Clothing'

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Mars Factory Overhaul Stalls As Candymaker's Chicago Expansion Accelerates

Camden Property Trust Sells West Coast Portfolio, Clears $1.5B Target

Churchill Downs Plans To Sell 9 Casinos, Focus On Horse Racing

Bringing Stability And Savings To CRE Insurance Through Working Layer

More Hotel Owners In Need Of Cash Are Getting It From The Big Brands

Former Arms Dealer Targeting Heartland Apartment Takeover Files For Bankruptcy

SEC Charges REIT, Its Founders With Alleged $152M Fraud Scheme

Equinix Ramps Up Spending Plans Amid Faster-Than-Expected AI Shift