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AIRBNB’S IMPACT ON THE NYC HOTEL
MARKET
NYU Stern | Data Visualization | Fall 2015
Aviel Eidels, Kristen Ong, Jaafar Rizvi, Chester Tan
VS
ContentsI. IssueII. NYC hotel market storyIII. AirBnB StoryIV. ComparisonV. Neighborhood overviewVI. Takeaways
I. Issue
Coverage
The Hotel Association of New York claims AirBnb is hurting the city’s hotel industry
Data sources
KPIs• ADR• Occupancy• RevPAR• Supply & Demand
II. NYC hotel market
NYC hotel industry snapshot (2014)
56.4mm visitors
$9.08bn in revenue
99,250rooms
Source: STR Data, Hotel News Now, NYC & Co
391hotels
198766,922 rooms
2014 111,208 rooms
2008 85,839 rooms
Average supply of hotel rooms in NYC per year
Source: STR Data, Hotel News Now
2008 - 20143.8% CAGR
1987 - 20081.0% CAGR
Hotel room supply grew almost 4 times as fast on average for the ‘08-’14 period when compared to ’87-’07
NYC Hotel DensityConcentration around midtown
Hell’s Kitchen144 Hotels, 22% of total hotels, 38% of available rooms
Source: STR Data
III. AirBnb story
2008 2009 2010 2011 2012 2013 2014 2015- 0.1MM 1MM 2MM
10MM
18MM
39MM
79MM
• Average number of nights booked per year
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
Neighborhood comparisonAverage price Number 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
Chelsea
West Village
Greenwich Village
Soho
Tribeca
Source: STR Data
Neighborhoods with top 5 AirBnb ADR
1. Tribeca2. Soho3. Chelsea4. West Village5. Greenwich Village
IV. ComparisonVS
Industry metrics
$272 mm
$9,080 mm
$165
$30912,446listings
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
Market shareShare of total 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
2008-2015 NYC Hotel ADR
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008
2015
Q3/Q4 ‘15 values are projections based on historical monthly trendsSource: STR Data
2008
2015
Monthly average ADR2008: $275.42015: $261.3
2008-2015 NYC Hotel Occupancy
Q3/Q4 ‘15 values are projections based on historical monthly trendsSource: STR Data
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008
20152008
2015
Monthly average occupancy2008: 81.6%2015: 85.1%
2008
2015
2008-2015 NYC Hotel RevPAR
Q3/Q4 ‘15 values are projections based on historical monthly trendsSource: STR Data
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008
2015
Monthly average RevPAR2008: $225.12015: $224.6
2010-2015 NYC hotel supply vs demand
Q1 2010
Q3/Q4 ‘15 values are projections based on historical monthly trendsSource: STR Data
Measure NamesDemandSupply
Q4 2015Monthly average supply |
demand2010: 2.8M | 2.3M2015: 3.4M | 2.9M
Across various measures, the hotel industry has not been suffering
ADROccupancy
RevPar Demand > Supply
V. Neighborhood overview
0K 5K 10K 15K 20K 25K 30K 35K 40K 45K 50K 55KTotal
Chelsea and Hell's KitchenGramercy Park and Murray Hill
Lower ManhattanGreenwich Village and Soho
Lower East SideUpper West Side
Northwest BrooklynNorthwest Queens
Upper East SideWest Queens
JamaicaCentral Brooklyn
Bushwick and WilliamsburgGreenpoint
Inwood and Washington Heights
Hotel room and AirBnb supply by neighborhood
Sheet 13
LegendAirBnB ListingsHotel Rooms
Source: AirBnb data scrape, November 2015
East village/ABC/L
ES: High density and low income
Heat map comparisonHotel room density AirBnB listing density
Midtown: Center
of busines
s
Source: STR Data
VI. Takeaways
Hotel revenue from 1987 through AirBnB launch in 2008, with forecast through 2014
Projected vs. actual
Takeaways• It appears that 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
Questions?
Appendix
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)
Rent Heatmap
Rent Heatmap