CBRE Research’s Short-Term Rentals: A Maturing U.S. Market & Its Impact on Traditional Hotels suggests that alternative accommodations and an increase in hotel supply are affecting daily rates during peak periods not rising as they have before.
Short-term rentals can flood a market during major events and then vanish, affecting hotel pricing power and is likely to decrease new hotel construction.
ASAP Business Partner STR has also reported that RevPAR growth was slower in 2019 than any year since the recession.
The CBRE report also predicts that short-term rental supply growth in the U.S. is forecast to slow in 2020, especially in urban areas, but will still hit around 100,000 new short-term rental units, to form 12.2% of overall lodging supply. Branded short-term rental management companies including Sonder, Stay Alfred, Lyric and Domio can compete by consolidating multiple units and buildings under their brands.