STRs: The upside to a pending recession....
More and more I'm hearing that STRs are going to be the alternative to hotels as it looks like a recession may be eminent. Curious to hear from the forum if you are seeing the same trends in terms of your bookings. Especially if you are in a vacation destination where hotels/resorts tend to capture the marketshare of the vacation traveler, ie. Hawaii, Orlando?
https://finance.yahoo.com/news/summer-vacation-rentals-144442710.htm
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Second post like this this week (at least), and I think people looking at STRs as the magic bullet need to be extremely careful. Recent data suggests that increased supply (ie more people offering STRs) has resulted in lower occupancy this year. Equilibrium in many markets is not far off. Moreover, the regulatory landscape is changing constantly and rapidly.
“Going to be an alternative to hotels”? They have been for some time. I seriously doubt that STRs are going to make hotels extinct. They still fulfill valuable and desirable needs for many people. Heck I’m all-in on STRs and I still stay in hotels for a significant portion of my travel.
- Dave Stokley