It’s hump day! I hope you’re enjoying this Fall day wherever you are (and if it’s Fall there). I came across this podcast that talks about how the crackdown on rentals in New York won’t automatically be a good thing for hotels. Simply put, the guest profiles are different. More on Airbnb and New York later.
But first, we must talk about Taylor Swift. At the Short-Term Rentalz summit in London last week, KeyData’s Sally Henry gave a presentation and noted that the short-term rental industry made $10 million from the artist’s Eras tour.
Another analyst from a different data firm confirmed the trend..
“High level, when the STR industry has revenue falling, Taylor is literally a windfall almost everywhere she goes. Entire cities see double digit increases in occupancy and ADRs, with the mid-tier cities like Pittsburgh, PA benefiting the most,” said Jeff Breece, director of revenue management at Beyond.
Events like this create windfall effects on not only the lodging industry but ancillary businesses too. And during a summer like we just had, where supply overshadowed demand and occupancy, those compression demand nights mean a lot for both rentals as well as hotels.
Here’s a snapshot of the tour numbers: Ticket sales alone were expected to generate $590 million within the U.S. In Chicago, hotels had a 97% occupancy with over 44,000 rooms filled with guests. Some studies found that demand for flexible labor in the vicinity of a stadium can reach close to 1,000% of normal levels.
So, speaking of concerts and demand, we’re watching the Beyonce tour (yes, we read your mind).
Meanwhile, do check out Skift Hospitality Editor Sean O’Neill’s story on Beyoncé Tour Brings a Hotel Renaissance With Boosted Bookings.
Emerald Stay Expands Portfolio with Ski Verbier Exclusive Acquisition
Emerald Stay, a B-Corp certified operator of high-end short-term rentals, has acquired Cotswolds-based Ski Verbier Exclusive. This acquisition further strengthens its ultra-luxury division, now overseen by Tom Avery, SVE’s CEO and founder. Emerald Stay manages more than 200 chalets, villas, and apartments in the French Alps, Spain (Costa Brava and Mallorca), and Morocco, among other destinations.
Accor Makes Deeper Inroads Into Rentals
Accor has announced the expansion of its extended stay, serviced apartments, and private rentals portfolio. Novotel Living, an extension of the Novotel brand, has recently launched in Singapore, Bangkok, Saigon, and Kazakhstan, with more locations in the offing. Travelers can access a specialized website to book Accor’s extended stay, serviced apartment properties, and branded residences available for rental programs.
Edmonton Short-Term Rental Association Opposes Ban and Advocates Stricter Regulations
The Edmonton Short-Term Rental Association is pushing for tighter regulations instead of a ban on short-term rental businesses. It is opposing a motion set to be presented by city council member Michael Janz, The Edmonton Journal reported. The proposed measure would lead to an outright ban on short-term rentals, including those on platforms like Airbnb. The association argues that short-term rentals benefit local businesses, tourism, and homeowners who rely on this income to supplement their earnings. They cite a Conference Board of Canada report stating that Airbnb hasn’t significantly impacted rent prices in Canada. Members suggest improving enforcement to address concerns about unregulated rentals.
City of Calgary and University of Calgary Launch Public Engagement on Short-Term Rentals
The City of Calgary and University of Calgary have commenced the first phase of a two-part public engagement on short-term rentals. This initiative is part of a broader research partnership to establish an evidence-based short-term rental policy adaptable to changing market conditions. From October 19 to December 31, 2023, Calgarians are invited to participate in an online survey, sharing their experiences, impacts on communities, and current/future concerns regarding rentals. The research team is also conducting targeted focus groups and interviews with short-term rental operators, community associations, tourism, business, and housing representatives. The final report and recommendations are anticipated to be presented to the council in December 2024.
In More Airbnb-New York City News …
A New York City building owner has filed a legal motion seeking to hold Airbnb and a host in contempt of court for allegedly violating a temporary restraining order regarding a short-term rental listing.
Columbus 69th LLC, the plaintiff, requested penalties for this alleged violation and a hearing is scheduled for October 30 in a New York State court. The owner had previously placed the building on the city’s prohibited building list, which bars short-term rentals, and had obtained a temporary restraining order against the host and Airbnb. The motion claims that guests were observed in the apartment on October 17, with the listing still active for future bookings, despite the court order.
The apartment can accommodate more than 16 guests and rents for $1,037 per night. Airbnb has said it is working with New York City’s Office of Special Enforcement as it enforces the new registration law.
Srividya Kalyanaraman writes the Short-term Rental Report. Reach out to her with tips, comments and feedback at firstname.lastname@example.org