Exploring the impact of Airbnb on the hospitality market, the winning combination of sports and hotels in Las Vegas, and the safety net provided by large-group travel for Ryman Hospitality. Companies discussed include VICI, RHP, and ABNB.
Short-term rentals face margin erosion due to hosting costs, challenging profitability.
Hospitality REITs like Ryman Hospitality Properties are diversifying into experiential offerings for growth.
Deep dives
Impact of Short-Term Rental Economics on Hosts
Short-term rentals used to be more profitable than long-term rentals due to higher daily rates, but hosting costs could erode these margins. Factors like time and expenses are making hosting more challenging for hosts.
Resilience of Hospitality Spending Amid Consumer Weakness
While consumer weakness is evident in some sectors, hospitality and entertainment are still thriving. Companies like Ryman Hospitality Properties and Pebblebrook Hotel Trust are experiencing growth and strong bookings, indicating resilience in the hospitality sector despite economic strains.
Diversification and Expansion in Hospitality REITs
Hospitality REITs are exploring new ventures like experiential partnerships to diversify beyond traditional gambling properties. Companies like Ryman Hospitality Properties and Vici Properties are expanding into experiential offerings and large-scale entertainment venues to adapt and grow their businesses.
Deidre Woollard and Matt Argersinger check in on the world of hospitality real estate including Airbnb as well as two real estate investment trusts with big hotels and even bigger ambitions.They discuss:
If Airbnb can take a greater share of the hospitality market.
Why sports and the Sphere are a winning combination for Las Vegas.
How large-group travel provides a safety net for Ryman Hospitality.