Short-term rentals have been much more popular than “traditional hotels” throughout the COVID pandemic, recording significantly higher occupancy rates between March and June, according to the preliminary findings of a joint analysis across 27 global markets by STR and AirDNA.
STR and AirDNA compared the performance of traditional hotels, hotel-comparable short-term rentals (studios and 1-bedroom units) and larger short-term rentals (2 bedrooms or more).
Preliminary findings were released overnight and reveal:
- Traditional hotels saw the most severe year-over-year declines in performance as well as the lowest absolute points during the pandemic.
- In the final week of the analysis, larger short-term rentals showed the highest occupancy level of 61.4%.
- Short-term rentals most comparable with hotels came in at 58.2%, while traditional hotels were at 39.2%.
- Larger short-term rentals most consistently (but not always) posted the most favorable week-over-week percentage change in average daily rate (ADR) .
- During the final two weeks of the analysis, however, traditional hotels showed the highest rate growth of 5.1% and 2.4%, respectively.
- Regional areas are seeing faster performance gains than urban areas across the two accommodation sectors.
- Supply fluctuations remained consistent across the three accommodation types.
These findings confirm claims by the shorter-term rental industry that the privacy of their properties – especially larger, free-standing properties and those in regional areas – has been preferred to hotels throughout COVID.
STR says the full analysis will be released over the weeks ahead.