CBRE Hotels recently published findings from a study covering October 2014 through September 2015 that quantified Airbnb’s impact on the U.S. lodging market. The report found that Airbnb guests spent approximately $2.4 billion on lodging during that period. More than half of that revenue—55 percent—was concentrated in five metropolitan areas: New York, Los Angeles, San Francisco, Miami and Boston.
Using these figures, CBRE evaluated which hotel markets faced the greatest competitive pressure from Airbnb. New York topped the list as the market most at risk of being affected by heavy Airbnb usage, followed by San Francisco and Miami. When accounting for local hotel supply, Airbnb growth rates and competitive dynamics, the study also identified Oakland and Oahu as markets where traditional hotels and other conventional accommodations were particularly vulnerable.
R. Mark Woodworth, senior managing director at CBRE Hotels, described several likely consequences for the conventional hotel sector. “For existing hotels, the growth of average daily rates will most likely be curtailed,” he said. He noted that Airbnb’s flexible and often expanding supply can reduce the price premiums hotels have historically been able to command during peak demand periods. Woodworth also suggested that this competitive pressure could influence decisions about new hotel construction.
The report also challenged a common perception that Airbnb is always the cheaper option. When comparing rates, the study found the average price for an Airbnb unit during the study window was $148.42, whereas the average hotel guestroom rate was $119.11. This comparison indicates that in many cases hotels remained the more economical choice on a per-night basis.
Overall, CBRE’s analysis highlights how the rise of short-term rentals has reshaped competitive dynamics in several major U.S. markets, with implications for pricing, demand patterns and development decisions across the hospitality industry.