Congress has cut federal funding for public media — a $3.4 million loss for LAist. We count on readers like you to protect our nonprofit newsroom. Become a monthly member and sustain local journalism.
This is an archival story that predates current editorial management.
This archival content was written, edited, and published prior to LAist's acquisition by its current owner, Southern California Public Radio ("SCPR"). Content, such as language choice and subject matter, in archival articles therefore may not align with SCPR's current editorial standards. To learn more about those standards and why we make this distinction, please click here.
Report: Airbnb Is Keeping L.A.'s Hotel Rates Steady
(Photo by Corey Miller via the LAist Featured Photos pool on Flickr)
()
We've heard a lot about what Airbnb and similar homesharing sites might be doing to the rental market, but a new study indicates the service may also be impacting the hotel industry by keeping room rates steady. A study from CBRE Hotels, a commercial real estate firm, indicates that in areas where Airbnb rooms are plenty, hotel prices rise at a much slower rate than areas where Airbnb options are lacking, The L.A. Times reports. Hotels prices near LAX, where there is about one Airbnb room for every 4.4 hotel rooms, rose about 13% last year, while hotel prices in Santa Monica and Marina Del Rey—where there is one Airbnb room for every two hotel rooms—only increased by about 6.5%, according to CBRE's findings. Plus, those beachside Airbnb hosts are generally undercutting hoteliers by about 30%, compared to LAX hosts whose rates are only 8% cheaper than nearby hotels.
Hotels were not particularly concerned with Airbnb in the beginning, as the majority of Airbnb users were younger travelers on a budget. Business and more affluent travelers seemed to be inclined to stick to hotels. Eight years later, however, Airbnb is raking in the cash, pulling in $2.4 billion in revenue last year. The study, notably, points out that 55% of this revenue came from Airbnb users in five cities: NYC, L.A., San Francisco, Miami and Boston. Airbnb is now worth about $24 billion, compared to Marriott International, which is worth about $21 billion.
While some hotel owners are worried about the impact this supply and demand will have on their businesses, others feel like hotels and Airbnb offerings are still worlds apart.
"Hotels are going to provide a standard hotel experience whereas Airbnb can be an adventure or a nightmare," Ken Pressberg, who owns the Orlando, told the Times.
Support for LAist comes from
There are also a lot more Airbnb units available in Los Angeles than there were before. The Times found that Airbnb listings have increased by 42% from May to January. Opponents have argued that they're no longer just spare bedrooms or couches in the living rooms of busy professionals, but oftentimes full units that could otherwise be rented to those trying to find housing in the midst of a rental crisis. Santa Monica banned most Airbnb rentals last year, with Mayor Kevin McKeown saying city officials found over "1,000 dwelling units that should be homes to permanent residents had been converted instead to de facto hotel rooms." Two women who lived in an apartment on Fairfax sued their landlord after they claimed they were kicked out via the Ellis Act in 2013, only to find their former units on Airbnb. Airbnb has denied that it negatively affects the rental market.
[h/t Curbed LA]
As Editor-in-Chief of our newsroom, I’m extremely proud of the work our top-notch journalists are doing here at LAist. We’re doing more hard-hitting watchdog journalism than ever before — powerful reporting on the economy, elections, climate and the homelessness crisis that is making a difference in your lives. At the same time, it’s never been more difficult to maintain a paywall-free, independent news source that informs, inspires, and engages everyone.
Simply put, we cannot do this essential work without your help. Federal funding for public media has been clawed back by Congress and that means LAist has lost $3.4 million in federal funding over the next two years. So we’re asking for your help. LAist has been there for you and we’re asking you to be here for us.
We rely on donations from readers like you to stay independent, which keeps our nonprofit newsroom strong and accountable to you.
No matter where you stand on the political spectrum, press freedom is at the core of keeping our nation free and fair. And as the landscape of free press changes, LAist will remain a voice you know and trust, but the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news from our community.
Please take action today to support your trusted source for local news with a donation that makes sense for your budget.
Thank you for your generous support and believing in independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
The L.A. City Council approved the venue change Wednesday, which organizers say will save $12 million in infrastructure costs. -
Taxes on the sale of some newer apartment buildings would be lowered under a plan by Sacramento lawmakers to partially rein in city Measure ULA.
-
The union representing the restaurant's workers announced Tuesday that The Pantry will welcome back patrons Thursday after suddenly shutting down six months ago.
-
If approved, the more than 62-acre project would include 50 housing lots and a marina less than a mile from Jackie and Shadow's famous nest overlooking the lake.
-
The U.S. Supreme Court lifted limits on immigration sweeps in Southern California, overturning a lower court ruling that prohibited agents from stopping people based on their appearance.
-
Censorship has long been controversial. But lately, the issue of who does and doesn’t have the right to restrict kids’ access to books has been heating up across the country in the so-called culture wars.
Best of LAist