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AirBnb and the NYC Hotel Market
- 1. AIRBNB’S IMPACT ON THENYC HOTEL MARKET NYU Stern | Data Visualization | Fall 2015 Aviel Eidels, Kristen Ong, Jaafar Rizvi, Chester Tan VS
- 2. Contents I. Issue II. NYChotel market story III. AirBnB Story IV. Comparison V. Neighborhood overview VI. Takeaways
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- 4. Coverage The Hotel Associationof New York claims AirBnb is hurting the city’s hotel industry
- 5. Data sources KPIs • ADR •Occupancy • RevPAR • Supply & Demand
- 6. II. NYC hotelmarket
- 7. NYC hotel industrysnapshot (2014) 56.4mm visitors $9.08bn in revenue 99,250 rooms Source: STR Data, Hotel News Now, NYC & Co 391 hotels
- 8. Average supply ofhotel rooms in NYC per year Source: STR Data, Hotel News Now 2008 - 2014 3.8% CAGR 1987 - 2008 1.0% CAGR Hotel room supply grew almost 4 times as fast on average for the ‘08-’14 period when compared to ’87-’07
- 9. NYC Hotel Density Concentrationaround midtown Hell’s Kitchen 144 Hotels, 22% of total hotels, 38% of available rooms Source: STR Data
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- 11. - 0.1MM 1MM2MM 10MM 18MM 39MM 79MM 2008 2009 2010 2011 2012 2013 2014 2015 • Average number of nights booked History of AirBnb Sources: Wall Street Journal, Funders and Founders AirBnB was founded $7.2 mm Series “A” funding Ashton Kutcher invests Reaches 200,000 listings $10 bn valuation
- 12. Neighborhood comparison Average priceNumber of Listings Source: AirBnb data scrape, November 2015 Tribeca has the highest average daily AirBnB room rates, but one of the lowest number of properties available for guests to stay
- 13. Chelsea West Village Greenwich Village Soho Tribeca Source:STR Data Neighborhoods with top 5 AirBnb ADR 1. Tribeca 2. Soho 3. Chelsea 4. West Village 5. Greenwich Village
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- 15. Industry metrics $272 mm $9,080mm $165 $309 12,446 listings 99,250 hotel rooms 97% 89% 3% 11% Data period: April 2015 TTM, Source: STR, InsideAirBnb, Hotel News Now *projected ADR for 2015 based on growth since 2009 Revenue Number of available rooms Average Daily Rate
- 16. Market share Share oftotal occupied rooms in NYC 2012 2013 2014 Share of total annual rooms revenue in NYC Data period: April 2015 TTM, Source: Hotel News Now 96.9% 95.0% 94.6% 3.1% 5.0% 5.4% 2012 2013 2014 98.4% 97.3% 97.1% 1.6% 2.7% 2.9% AirBnb has been slowly growing its NYC market share
- 17. 2008-2015 NYC HotelADR Q3/Q4 ‘15 values are projections based on historical monthly trends Source: STR Data Monthly average ADR 2008: $275.4 2015: $261.3
- 18. 2008-2015 NYC HotelOccupancy Q3/Q4 ‘15 values are projections based on historical monthly trends Source: STR Data Monthly average occupancy 2008: 81.6% 2015: 85.1%
- 19. 2008-2015 NYC HotelRevPAR Q3/Q4 ‘15 values are projections based on historical monthly trends Source: STR Data Monthly average RevPAR 2008: $225.1 2015: $224.6
- 20. 2010-2015 NYC hotelsupply vs demand Q1 2010 Q3/Q4 ‘15 values are projections based on historical monthly trends Source: STR Data Q4 2015 Monthly average supply | demand 2010: 2.8M | 2.3M 2015: 3.4M | 2.9M
- 21. Across various measures,the hotel industry has not been suffering ADR Occupancy RevPar Demand > Supply
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- 23. Hotel room andAirBnb supply by neighborhood Source: AirBnb data scrape, November 2015
- 24. East village/ABC/LES: High density and lowincome Heat map comparison Hotel room density AirBnB listing density Midtown: Center of business Source: STR Data
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- 26. Hotel revenue from1987 through AirBnB launch in 2008, with forecast through 2014 Projected vs. actual
- 27. Takeaways • It appearsthat the NYC hotel market hasn’t suffered as much (if, at all) as critics have claimed • Various KPIs show improvement for the hotel industry • Demand for hotel rooms in NYC has been increasing, but demand for AirBnb has been growing faster • AirBnb’s NY customer base may not be the same as the core NY hotel customer • Policymakers should not change laws based on the claims of the hotel industry. Doing so may dissuade potential visitors who cannot afford hotels, hurt constituents who need supplemental income, and destroy economic value from the booming hospitality sector Source: NYC Go
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- 30. Limitations • Quality Ratings:AirBnb ADR does not reflect quality of room night • Might not be the same consumer • Format of Airbnb (house vs. apartment vs. hotel room)
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