Hyatt has bet big on developing hotels in China despite recent turmoil in the commercial real estate market. Hyatt executives acknowledged the risks Thursday, but explained reasons for optimism.
28.02.2024 - 01:29 / skift.com / Brian Chesky / Srividya Kalyanaraman
At the Skift Global Forum last year, Airbnb CEO Brian Chesky predicted hotel rates would rise in New York City as a result of Local Law 18 – which Airbnb has called a “de facto ban” on short-term rentals.
The hotel industry, which supported the law, should see significant benefits from increased demand. How much?
About $380 million this year, according to a new report by real estate firm JLL. The report revealed that hotels in New York City could book an additional 2.2 million nights this year.
Local Law 18 went into effect in September 2023 and requires hosts to register with the city, imposes restrictions on rental durations, and mandates hosts to be present during stays. The law also aims to curb illegal hotels and short-term rentals.
That hotels stand to gain from 70% of Airbnb listings disappearing is not surprising. But there are other factors at play here.
The demand for hotel nights is supported by a drop in listings for rentals. Less than six months since Local Law 18 was passed, long-term rentals (of 30 days and longer) make up 90% of short-term rental supply in New York City. AirDNA data showed that the total available listings in January 2024 (both short- and mid-term, entire place as well as private and shared rooms) were 47% below January 2019.
That said, AirDNA data found that RevPAR has actually increased in New York for rentals since both 2019 and annually. RevPAR in January 2024 was $126.55, up 48% from January 2023 and a 90% hike from January 2019.
And New York City’s loss boosted two New Jersey cities, Newark and Jersey City. AirDNA data showed a decline of 46.1% in demand growth in December last year in New York City. Conversely, Jersey City and Newark experienced a surge in demand, with a growth rate of 53.7%.
And as Chesky said at the Skift Global Forum last year: “Next year, I predict hotel rates will be more expensive, and the reason why is they’re not going to be building 20,000 more hotel rooms, so it’s going to be more expensive to stay in New York, and I think that’s unfortunate because it’ll be a little less accessible.”
Hyatt has bet big on developing hotels in China despite recent turmoil in the commercial real estate market. Hyatt executives acknowledged the risks Thursday, but explained reasons for optimism.
The solar eclipse on April 8, will be a celestial event. It will be visible from 15 states across the U.S., parts of Mexico and Canada.
Following a triumphant sold-out edition last year, Skift Short-Term Rental Summit is making its comeback in New York City on June 5. Expanding on Skift’s comprehensive coverage of short-term rentals, the Summit will explore the impact of distribution, platforms, and technology on both traditional and unconventional vacation rentals. Join us for insights into consumer behavior, investor perspective, and more.
The European Parliament passed what some call the “Airbnb law” last week, requiring short-term rental platforms to comply with data sharing and supervision checks.
Madalyn Monto grew up outside New York City and knew she'd live there one day.
It’s a short-term rental dream: Lock in a long-term lease on a property and collect more than the lease amount by renting it out. The added bonus is you don’t have to deal with owning the property.
Harald Köhler to spearhead Austrian market growth for hotel management software company.
This article delves into the secrets behind the longevity of these relationships, offering valuable lessons for those seeking to nurture a love that stands the test of time.
New Premium Brand Launched in Days as Company Continues to Fulfill Mission of Launching Profitable Micro-Segmented Brands.
When you book a short-term rental from Tabas by Blueground in Rio de Janeiro, you get an apartment that feels more like a resort. Everything from the furniture to the towels is standardized. Linens, soap, bedspread — it's all so hotel-like.
Historically, Disney World ticket price increases have been fairly predictable. Whether we wanted it to or not, about once a year, Disney would announce an incremental price increase that typically went into effect soon after the announcement. However, Disney has not raised ticket prices since 2022, when it announced two increases in the same year.
Ever wonder how much someone's vacation really costs?