Heartbreak Hotel: Opportunities and challenges posed by the sharing economy
With each month that passes, the impact of accommodation sharing platforms such as Airbnb becomes more pervasive, and its effects on lodging occupancy and pricing power will become more visible. In the listed real estate space, this will manifest in slower revenue growth, and weaker profitability. Fortunately, the competition from providers such as Airbnb will not be felt equally across the industry. This piece seeks to highlight the opportunities and challenges posed by the sharing economy for real estate investors.