Airbnb's London listings rise nearly threefold last year

Maryam Cockar Sharecast | 08 Nov, 2016 09:20 - Updated: 13:33 | | |


Online property booking website Airbnb’s market share in London rose nearly threefold last year, according to a study published on Tuesday.

A report by Colliers, a US-based commercial estate service company, using data from AirDNA, revealed that 7.6% of overnight stays in the capital were booked using Airbnb in December 2015, a 2.8% increase from January.

The report showed that there were 2m overnight stays in London in 2015 with a rise in the average daily rate to $142 per night, compared to $220 for hotels.

About 38% of people stayed in homes that were listed by people who had only one property, while the remaining listings were posted by people who had more than one property.

Marc Finney, Colliers’ head of hotels consulting, said Airbnb was more of a complement rather than a direct competitor with hotels, as multiple landlords were more likely to affect the private rental sector.

Airbnb said that people who had several listings could be advertising different rooms in a house and some people manage listings on behalf of others.

However, Jeroen Oskam from hotel business school Hotelschool The Hague, said Airbnb hosts with multi-listings account for more than half of all Airbnb listings in London, pointing to Colliers' figures that 42,559 of the London Airbnb rentals were from a landlord with multiple properties, which is double the number of homes that were built in London in 2014.

“When you consider the characteristics of these units and their spatial distribution, it is clear that these rentals are primarily a commercial activity; the uncontrolled expansion of which is not only harmful to the hotel market, but also to city neighbourhoods and the housing market,” Oskam said.

Of all the London boroughs, Westminster, Tower Hamlets, Camden, Kensington & Chelsea and Hackney accounted for 1m Airbnb stays last year, more than half of all the website’s bookings in the city.

Airbnb landlords reported revenue of $286m last year with hotels realising $8.1bn in revenue.

Dirk Bakker, head of EMEA hotels for Colliers, said: “Due to the current oversupply of Airbnb accommodation in London and the increasing demand figures, a healthier balance in demand and supply is expected in the future. This will lead to higher average daily rate levels and revenues, which overall paints a very positive outlook for Airbnb hosts.”

More news

22 Sep Europe close: Stocks finish higher on strong PMI readings

Stocks on the Continent finished mostly higher on the back of strong survey readings on the euro area's manufacturing and services sector and ahead of the German general elections at the weekend, although fresh barbs from Pyongyang were a drag on sentiment.

22 Sep Thousands of steel workers protest ThyssenKrupp merger in Germany

Thousands of steel workers gathered in Western Germany on Friday to protest the proposed merger of ThyssenKrupp and Tata Steel's European operations which was expected to result in approximately 4,000 job losses.

22 Sep London Close: FTSE firmer as pound losses ground after May speech

London stocks had reversed earlier losses to trade a little higher by Friday's close, helped along by a weaker pound as investors weighed up a key speech by Prime Minister Theresa May.

22 Sep JP Morgan Chase to establish global headquarters in Warsaw

Polish Deputy Prime Minister Mateusz Morawiecki announced on Friday that US bank JP Morgan Chase had picked Warsaw to play host to its new global operations centre, bringing thousands of jobs to the region from the beginning of 2018.

22 Sep FTSE 250 movers: Pets at Home dashes higher, oilers also lifted

The FTSE 250 index was on the front foot on Friday, led by retailer Pets at Home and a group of oil-related companies.

22 Sep Theresa May calls for post-Brexit transition period, new security treaty

In a speech in Florence on Friday, Prime Minister Theresa May confirmed that she wanted a two-year "implementation period" post-Brexit and a new treaty with the European Union on security and justice.

22 Sep FTSE 100 movers: Johnson Matthey rallies again but Smiths drops on results

London's FTSE 100 was up 0.6% to 7,305.66 in afternoon trade on Friday as investors mulled over PM Theresa May's Brexit speech in Florence.

22 Sep Results round-up

Saga, the specialist provider of products and services for those over 50, reported solid growth of 5.5% in underlying profits before tax for the first half as it ordered a second new cruise ship amid high demand.

22 Sep US economy shows resilience in face of hurricanes - Markit

Business activity in the US picked up in September despite hurricanes Harvey and Irma, as growth in the manufacturing sector helped to offset an easing in services, according to preliminary data released on Friday.

22 Sep Thalassa suspends share buyback as FairfieldNodal commences due diligence

Thalassa Holdings confirmed the suspension of its share buyback programme on Friday, as a suitor continued to circle the marine geoscience and subsea robotics company.