NEWS STORIES FEATURES VIDEOS
Editorial comment
07•05•19 Welcome to the latest Short Term Rentalz weekly newsletter!
• As another week goes by, the short-term rental industry is showing no signs of slowing down with hotel companies Marriott and OYO stepping further into the space.
The Wall Street Journal reported that the former is poised to launch its own rental business and will unveil details about it as early as next month, having already piloted its own program in Europe.
While major hotel companies like AccorHotels, Hilton and Hyatt have yet to make significant inroads in the rental sector, it is believed Marriott will offer 2,000 luxury properties around the world for a minimum three-night stay through its Homes & Villas by Marriott International programme.
Marriott has also been looking to contract with property management companies that will take on the responsibility of managing on-site logistics and providing premium linens, high-speed Wi-Fi connections and in-person support among other things.
However, any formal move into the rental space would require Marriott to abide by the same city restrictions that listing platforms such as Airbnb are fighting against, like in New York City where the local government tried to subpoena Airbnb for detailed information on hosts’ data.
The firm previously launched its home-sharing pilot platform in Europe after partnering with London-based property management company Hostmaker to take over 340 properties in Rome, Lisbon, London and Rome respectively. Findings later revealed that the units appealed to customers who were seeking more space, as well as sufficient kitchen and laundry facilities.
Hotel industry professional Ryan Meliker told the Wall Street Journal: “It’s clear the home-sharing phenomenon is here to stay and hotel companies want to make sure they get their piece of this pie.”
Meanwhile, OYO Hotels & Homes has agreed to purchase Amsterdam-based rental company @Leisure Group from media firm Axel Springer.
@Leisure, managed by CEO Tobias Wann, offers a subscription-based home management service with over 85,000 holiday homes spanning across 50 countries. Wann will now also take on the additional role of OYO Global's CEO of Vacation Homes.
Launched in 2017, OYO already manages over 15,000 villas and apartment units globally and with this latest acquisition, it aims to become a global real estate brand whilst maintaining its leadership in the hospitality industry, according to founder and CEO Ritesh Agarwal.
He said: “We see vacation homes as a unique opportunity with 115,000 units of homes getting added to our growing count and we are excited to continue maintaining our global industry leadership."
Both news items follow on from Rented.com CEO Andrew McDonnell's 2019 prediction that "more institutionalised, sophisticated investors" would come into the space and create a "gold rush of investment". He added that as more and more hotel groups collaborate with rental companies, brands would go on to serve a more diverse range of travellers beyond traditional hotel guests.
If you have a story you want us to tell the industry, please click here and get involved with the community by commenting on our news stories on our website.
Paul Stevens, reporter
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