Hotel Industry Calls Airbnb Properties “Illegal Hotels” that Need Regulation

Airbnb renters in large cities are actually large organizations and not “home sharers,” and as such should fall under government regulation, according to a new study from the American Hotel & Lodging Association (AH&LA). 

“From Air Mattresses to Unregulated Business: An Analysis of the Other Side of Airbnb” found that nearly 30% ($378 million) of Airbnb’s revenue in 12 of the United States’ largest markets over a recent 13-month period came from multi-unit, full-time operators who offer rentals 360 days a year. Each operator averaged more than $140,000 in revenue during the period. 

While Airbnb claims that “a typical listing earns $5,110 a year, and is typically shared less than four nights per month,” the reality is that the top 7% of operators brought in $325 million in revenue.  

“This is not about ‘home sharing,’ a practice that has existed for decades as a way for individuals to make a little extra cash,” said AH&LA President and Chief Executive Officer Katherine Lugar. “As a corporation valued at more than US$25 billion, they have a responsibility to protect their guests and communities; they should not be enabling the corporate landlords who are clearly using their platform to run illegal hotels.”  

Pic: Raysonho @ Open Grid Scheduler / Grid Engine