The short-term rental industry will expand to roughly 650,000 actively rented units in the United States this year, equal to 12.2 percent of the country’s hotel-room supply, as the fast-growing sector further expands in suburban, rural and resort markets, according to a new report from CBRE. As a result, the STR sector’s influence is impacting traditional hotel valuations as the industry reconsiders valuation methods.
“The industry used to essentially ignore the impact of STRs when assessing a hotel’s value, but not anymore,” said Tommy Crozier, executive vice president leading CBRE’s National Hotels Advisory Practice. “It’s clear that STRs can have a direct and meaningful impact on hotel performance and asset values. The impact might be more pronounced in some submarkets than in others, contingent on conditions, but it is a legitimate impact nonetheless.”
CBRE’s analysis of data on short-term rentals, or STRs, shows that the industry’s growth rat
