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Dining room of a home on Park Avenue , New York City , part of Accor ’ s Onefinestay portfolio
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FOMO IS DRIVING HOTEL COMPANIES TO INVEST IN THE HOMESHARING SPACE – THAT , AND A LITTLE COMPANY CALLED AIRBNB .
Contributed by MEGAN ROWE
The April launch of Homes & Villas by Marriott International provided the latest confirmation that homesharing has reached the mainstream . The lodging behemoth seemingly overnight opened up access to 2,000 premium and luxury homes in more than 100 destinations in the U . S ., Europe , the Caribbean and Latin America .
Before jumping in , though , Marriott last year ran a pilot test in Europe that demonstrated the logistics of working with property managers and how to ensure certain standards . Guests liked the product , and the data suggested that bookings weren ’ t stealing roomnights from the company ’ s core lodging business .
Some rivals have struggled to make a go of it . Hyatt Hotels took stakes in two homeshare firms , Onefinestay and Oasis . On an investor conference call last spring , CEO Mark Hoplamazian said struggles with consistent quality , an expensive delivery model and challenging local regulations made it tough to view the homesharing experiment as “ a sustainable model .” Accor eventually bought Onefinestay and also has found profitability a challenge .
Homesharing , fueled by Airbnb and smaller players like Home Away and VRBO , has risen from nothing to more than 8 % of the U . S . hotel market in only 10 years , according to hotelappraisers . com . And Airbnb ’ s new tier , Airbnb Luxe , includes 2,000 upscale homes , villas , castles , islands and other rentals aimed at high-net-worth travelers .
“ If the potential is that large , ( traditional hotel companies ) need to learn this new business ,” says researcher and lodging consultant Bjorn Hanson . For companies like Marriott and Choice Hotels that have a large loyalty member base , he adds , offering longer-stay vacation rental inventory is essential , both for earning and redeeming points . The other big motivator : attracting younger customers . “ Those people will travel for the next 30 to 40 years , and if Marriott can gain a little of that travel wallet early on , they will see benefits down the road ,” says Michael Bellisario , vice president and equity research analyst for Robert W . Baird & Co .
APPROACHES VARY Marriott ’ s foray into homesharing relies on a network of vetted property management companies . The homes are professionally cleaned and equipped with high-speed Wi-Fi , premium linens and amenities , and family-friendly conveniences as requested . The idea is to allay some of the anxiety associated with staking a family vacation or anniversary trip on an unknown quantity .
“ We recognize that level of anxiety , and we want to provide the home that really
48 hotelsmag . com September 2019