Airbnb Forces Down NYC Hotel Prices

Airbnb seems to be driving down the cost of some hotels in New York City, according to Credit Suisse analysts. The prices of hotel rooms have dropped thanks to bad weather (keeping tourists away), a weaker euro (keeping continental tourists away), and competition between Airbnb and small boutique hotels. “With as many as 10,000 units or more available at a time, we can see that on the margin this excess capacity can place pressure on a number of hotel locations that rely on leisure demand for those with an appetite for value/adventure,” Credit Suisse wrote in a report. In January, revenue-per-room in New York hotels declined 18.6 percent over the previous January.