April 18, 2021 #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

Related Posts

Edify TV: $2 Billion Beverly Hills Development Proposed Near Westside

April 16, 2021

April 16, 2021

A developer wants to build a $2 billion condo and retail development flanking the Beverly Hilton hotel. Learn more in...

Culver City Video Game HQ Underway

April 16, 2021

April 16, 2021

Take a look at the Culver City headquarters for a $3.3 billion gaming company. Video made possible by Santa Monica...

14 Home Complex Starting at $3 Million Wraps up Near Facebook Offices

April 16, 2021

April 16, 2021

 Work wraps up at Encore development  By Chad Winthrop  Work is nearly done on 14 multi-story homes starting at $3.1...

Edify TV: Venice Handball Courts Encampment Cleared

April 15, 2021

April 15, 2021

Sanitation crews Thursday cleared a homeless encampment at the Venice Beach handball courts. Learn more in this video made possible...

Del Rey Dry Cleaner Goes up in Flames

April 15, 2021

April 15, 2021

LAFD put out first-floor fire this week By Chad Winthrop Over 90 firefighters put out a fire that broke at...

Edify TV: LAFD Announces Likely Cause of Ballona Wetlands Fire

April 15, 2021

April 15, 2021

The LAFD has revealed the cause of a March fire that destroyed five acres of the Ballona Wetlands. Learn more...

Pizza Pop-up Coming to Venice Next Week

April 15, 2021

April 15, 2021

Lupa Cotta coming to Venice’s Chez Tex next Friday By Kerry Slater A “nomadic pizza business” is popping up in...

Restaurant Spotlight: Piccolo Bringing Fine Italian Dining to Santa Monica and Venice

April 15, 2021

April 15, 2021

Latest restaurant from Chef Antonio Mure with two locations on Westside  By Timothy Michael An esteemed chef with deep ties...

Food Review: Griddle Cake Perfection Arrives on the Westside

April 15, 2021

April 15, 2021

Breakfast by Salt’s Cure lands on Montana Avenue in Santa Monica By Kerry Slater A new Westside breakfast spot serves...

Westside Cafe Helping Save Monarch Butterflies

April 13, 2021

April 13, 2021

This Westside cafe is doing its part to keep its namesake insect, the monarch butterfly, safe. Learn more in this...

Virtual Venice Art Crawl This Week

April 13, 2021

April 13, 2021

Singers, poets, painters, photographers, performance artists and gallery owners are all scheduled to participate in the virtual Venice Art Crawl...

Junior Lifeguards Returning to Venice Beach This Summer

April 13, 2021

April 13, 2021

County-run program returns to LA County beaches July and August  By Sam Catanzaro A few weeks are left for prospective...

Beached Dolphin Near Venice: YO! Venice Show – April, 12, 2021

April 12, 2021

April 12, 2021

Local news and culture in under 5 minutes. * Beached Dolphin Near Venice Beach * Fareless rides coming to LA...

SWAT Tear Gas Trailer in Seven-Hour Venice Standoff

April 12, 2021

April 12, 2021

Standoff between police and barricaded suspect over the weekend at First Baptist Church By Sam Catanzaro  An over seven-hour standoff...