by Donald Wood
Last updated: 1:20 PM ET, Mon July 10, 2023
New data suggests the short-term rental market in the United
States fell sharply through the first six months of 2023.
According to data specialist Key Data, Revenue per Available
Rental (RevPAR) increased across Europe and globally through June, jumping 5.7
percent to $49 due to an increase in occupancy offsetting a slight increase in
Average Daily Rates (ADRs).
While hotel companies have been thriving outside the U.S.,
American brands contend with a cost-of-living crisis and a more extensive stock
of available rentals. RevPAR in the U.S. declined by 3.3 percent to $89 in the
first half of the year, while Average Daily Rates (ADRs) dropped 2.3 percent to
$260.
Occupancy was also down one percent to 34 percent, the
average booking window fell (ABW) from 45.1 days to 41.2 days and inflation in America
reached four percent in May, year-over-year.
“The U.S. really has been the sick man of the short-term
rental industry during the first half of 2023,” Key Data Executive Director Melanie
Brown said.
“It is being hit from all sides after steep increases in
supply over the past couple of years,” Brown continued. “This is going to take
some time to unwind, with any deterioration in the economic landscape set to
amplify the effects of this increased competition.”
In Europe, RevPAR was up 5.4 percent, occupancy was down 4.8
percent to 26 percent and ADRs were up 10.7 percent. As for the United Kingdom,
RevPAR jumped by 9.2 percent, while occupancy was down 0.9 percent at 34
percent, but offset by a 10.1 percent rise in ADR.
RevPAR in the U.S. and globally weakened during the second
quarter, while it strengthened in Europe and the U.K. In the third quarter, the
short-term rental market’s RevPAR trajectory in the U.S. is expected to climb
by 1.3 percent and occupancy increase by 4.3 percent.
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