A recent study by the American Hotel & Lodging Association highlights a notable rise in Airbnb activity in Chicago, much of which appears to stem from activity that may violate local rules. The study finds that 96 percent of Airbnb’s revenue in Chicago comes from hosts who list a property for more than 30 days in a year, while 60 percent comes from hosts listing properties for more than 180 days annually. Full-time operators who list units year-round account for 25 percent of Airbnb’s Chicago revenue, and hosts listing multiple properties in the region make up roughly 40 percent of that revenue.
Local hospitality business owners say these patterns resemble the operation of unlicensed hotels. Airbnb’s original concept focused on providing short-term stays in private homes or offering entire homes temporarily while owners were away. The Chicago data, however, suggest a shift toward long-term, commercial-style rentals rather than occasional, personal use.
“Chicago, like many large metropolitan areas across the country, is seeing a significant growth in the number of Airbnb hosts that are renting out their units full-time, or operating multiple units, as unregulated, and often illegal and unlicensed hotel businesses,” said Marc Gordon, president and CEO of the Illinois Hotel & Lodging Association.
Katherine Lugar, president and CEO of the AH&LA, emphasized public-safety and neighborhood concerns: “Unregulated hotels operated in residential properties are disruptive to communities and pose serious safety concerns for guests, for communities and for neighborhoods.” She also criticized Airbnb for limited transparency around its data and questioned the platform’s commitment to tax remittance and to addressing illegal short-term rental operations in the city.