Short Term Rental Riches 57. Is the Hotel Industry FINISHED?
Dec 15, 2020
The hotel industry is facing unprecedented challenges, with iconic establishments like the Lux Rodeo and the Roosevelt Hotel closing their doors. Occupancy rates are plummeting, leaving many hotels unable to survive. Meanwhile, short-term rentals are seeing a surge in demand as travelers seek alternatives. The pandemic has shifted preferences, giving short-term rentals an edge over traditional hotel accommodations. The landscape of travel is changing dramatically, and the implications for short-term rental operators are profound.
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Hotel Industry Tsunami Warning
- The hotel industry faces a "tsunami" of financial hardship as ongoing COVID restrictions suppress occupancy.
- This wave of troubles could wipe out many hotels over time, impacting the entire travel economy.
Historic Hotel Industry Decline
- The hotel industry is facing historic losses and many longstanding hotels have already closed.
- Low occupancy and high debt risk could lead to more closures, drastically reducing hotel supply worldwide.
Short-Term Rentals Gain Demand
- Hotel closures will reduce accommodation supply, pushing more travelers toward short-term rentals.
- Increased demand has driven up short-term rental rates and occupancy, benefiting hosts.