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Is Airbnb responsible for the softening in New York RevPAR?

02/12/2015| 8:50:18 AM| 中文

A recent analyst report from Credit Suisse suggests that Airbnb has put downward pricing pressure on hotels in New York City.

The analysts identified the soft demand heading into the fourth quarter of 2014, which has led to weaker earnings for those hotel groups that have significant exposure in the city (such as Hyatt, which relies on the city for about 10% of owned/leased EBITDA).

Demand stayed soft throughout January, with an 18.6% drop in RevPAR alongside a 7.5% decline in occupancy and a 12% drop in rate. While the report called out the inclement weather as a factor in weaker demand, it also identified the increase in supply from alternative channels such as Airbnb, saying:

We believe this sudden shift stems…to a leassor degree, continnued supply growth, softer demand due to F/X headwinds, and emerging supply channels (Airbnb) that are creating pricing pressure.

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TAGS: Airbnb | short-term rental | revenue management
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