February 2, 2023 #1 Local News, Forum, Information and Event Source for Venice Beach, California.

90291 Rakes in Millions on Airbnb

12:11pm

Today the American Hotel & Lodging Association (AH&LA) released Phase II of a study conducted by the Pennsylvania State University School of Hospitality Management that provides a detailed analysis of the commercial activity taking place in Los Angeles (LA) on Airbnb, one of the most trafficked short-term rental websites.

The study builds on the national survey released earlier this year that shows a trend in a growing number of commercial operators who use Airbnb to run what critics call unregulated hotels.

Key findings in the study were:

  •  A small percentage of operators – 4.36% – listed properties for rent more than 360 days per year – just like a hotel – and accounted for nearly $80 million, more than 30% of Airbnb’s LA revenue.
  • 22% of operators listed properties for rent more than half the year (180 days), accounting for more than $180 million, or almost 70% of Airbnb’s LA revenue.
  • The overwhelming majority of Airbnb’s LA revenue comes from hosts renting units 30 days or more: 84% of operators listed properties for rent more than 30 days per year, accounting for more than $250 million dollars or 98 percent of Airbnb’s LA revenue.
  • The five LA ZIP codes with the most properties listed on Airbnb account for nearly $84 million – or 32% of Airbnb’s LA revenue. The ZIP code with the most hosts and units for rent is 90291, which includes the neighborhoods of Venice, Venice Beach and Oakwood. This ZIP code’s nearly 1,100 operators earned almost $33 million in one year alone.
  • If Airbnb operators in the LA region were required to follow the same tax rubric as local lodging businesses in the City of Los Angeles, Airbnb should pay regional municipalities more than $41 million in local taxes last year alone.

Dr. John O’Neill, Professor and Director of the Center for Hospitality Real Estate Strategy at Pennsylvania State University directed the research and says, “in Los Angeles, a greater percentage of Airbnb’s revenue is tied to hosts who run unregulated – and often illegal – hotel businesses, listing one or more residential units for rent in the same metropolitan area to short-term visitors for a large portion of the year, if not the entire year.”

AH&LA President and Chief Executive Officer Katherine Lugar, “unregulated hotels operated in residential properties are disruptive to communities and pose safety concerns for guests and for neighborhoods.”

Judith Goldman, Co-Founder of Keep Neighborhoods First and long-time Venice local says, “these unregulated businesses are making it harder for residents to live in their own communities and are changing the long-standing residential culture and feel of our neighborhoods. And, what’s more, they’re reducing the supply of homes and driving up rents in LA’s already tight and expensive real estate market. These same commercial operators are undermining the social fabric that makes our neighborhoods stronger and safer.”

Los Angeles is the second of 12 cities profiled in a series of reports that comprise Phase II of an analysis into the commercial activity being transacted on Airbnb’s platform. Phase I of the analysis (“From Air Mattresses to Unregulated Business: An Analysis of the Other Side of Airbnb) was released in January 2016. That report revealed a troubling trend: In the nation’s largest cities, multiple-unit operators and full-time operators generate a disproportionate share of the company’s revenue – and their numbers are growing. Phase I showed that, between September 2014 through September 2015, “multi-unit operators” accounted for 19.4% of Airbnb’s LA hosts and drove 46.7% of the company’s revenue in the city – totaling over $129 million. Over 31 percent of Airbnb’s revenue (nearly $86.3 million) was derived from full-time operators who made up just 4% of Airbnb hosts in LA.

The full report is available for download on the AH&LA website at here

Tags: in Opinion
Related Posts

Column: Doing the Job and Doing It Well!

January 30, 2023

January 30, 2023

Retired Attorney Clark Brown is a “no-nonsense” Venetian fighting the plague of street encampments here in the neighborhood! By Nick...

Column: State Usurping Key Powers From Cities

January 28, 2023

January 28, 2023

By Tom Elias All over California last fall, hundreds of the civic minded spent thousands of hours and millions of...

Column: Los Angeles Homeless Services Authority CEO to Earn $430,000 Annually in Uphill Battle to Combat Street Encampments in Both LA City & County!

January 25, 2023

January 25, 2023

Dr. Va Lecia Adams Kellum earns support of Mayor Karen Bass, LA County Supervisor Chair Janice Hahn and LAHSA Chair...

Yolanda Gonzalez: A Community Advocate for Community Officer!

January 24, 2023

January 24, 2023

Longtime Venice activist Yolanda Gonzalez seeks seat on Neighborhood Council By Nick Antonicello Yolanda Gonzalez is a jack of all...

Column – A California Positive: Kids Swarm Extra Classes

January 24, 2023

January 24, 2023

By Tom Elias It’s become a cliché, the shibboleth that California has lousy public schools and most of the kids...

Column: Community Officer Soledad Romero Ursua Seeks Reelection to the Venice Neighborhood Council, Fighting to Keep Our Streets Safe and Secure!

January 24, 2023

January 24, 2023

This the first in a series of interviews with the candidates seeking election or reelection to the Venice Neighborhood Council...

Column: Building a Better CD-11!

January 19, 2023

January 19, 2023

Councilwoman Traci Park and staffers address homeless concerns and the promises kept in her opening salvo on the LA City...

​​Column: Cleaned & Cleared: Flower Avenue Tents Removed!

January 17, 2023

January 17, 2023

By Nick Antonicello  On the heels of the Hampton sweep and cleanup, Flower Avenue off Lincoln Boulevard here in Dog...

Venice Shorts: Bonin & Darling Seek Delegate Slots to California Democratic Party Convention, Flower Avenue Update, Homeless Count

January 12, 2023

January 12, 2023

By Nick Antonicello While Councilwoman Traci Park is now knee-high in developing new public policy downtown, her predecessor and recent...

Venice Shorts: Can the VNC Be Relevant & Effective Once Again?

January 10, 2023

January 10, 2023

By Nick Antonicello The Venice Neighborhood Council (www.venicenc.org) is calling for candidates for a new term of office in an...

Venice Shorts: Where Are All the Candidates for the Venice Neighborhood Council?

January 9, 2023

January 9, 2023

By Nick Antonicello The 21-member Venice Neighborhood Council is in jeopardy as of this writing with only eleven (11) candidates...

Venice Shorts: Karen Bass & Traci Park, Perfect Together?

January 8, 2023

January 8, 2023

By Nick Antonicello With the election behind us and the politics of governmental progress now the talk of the day,...

Pacific Ocean Park– A Positive & Optimistic Place in Santa Monica’s History

December 20, 2022

December 20, 2022

It’s the Holidays again, and we hope your spirits of joy and happiness are being well celebrated! In continuation of...

​​Column: No One Very Pleased as New Rooftop Solar Rules Improve

December 9, 2022

December 9, 2022

By Tom Elias, Columnist Only rarely does the California Public Utilities Commission, long known as the least responsive agency in...

Column: Will New Political Players Offer More Effective Local Government for Los Angeles & Venice?

December 5, 2022

December 5, 2022

Bass, Park could become unlikely allies in fighting homelessness, rising crime and the quality-of-life issues that plague both Angelenos and...