Airbnb vs Hotel

I have been trying to do some research on what would make a better investment. Has anyone done both?

I realize both can be capital intensive as well as occupancy rates can vary. It seems like a hotel would have more guest at any given time considering how many rooms you have. At the same time an airbnb guest have different experience when they book an airbnb.

You said in another post that you decided to keep the home you bought as an Airbnb with the existing tenants. What changed?

@Chris has a European style family owned hotel.

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Nothing has changed. But maybe in the future i plan on either doing an airbnb or hotel.

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"But maybe in the future i plan on either doing an airbnb or hotel.” (Can’t get the quote feature to work)

You’ve undoubtedly thought about this. I would just mention that the two ventures are very different types of businesses with what I assume would be completely different zoning regulations, liability, insurance, and just about every other business aspect.

Have you considered buying a property that could be an inn? Friends of mine did that as they retired. They have four rooms and are making a go of it. They plan to add an event space, as they end up hosting wedding parties.

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Not yet. In the future i might be looking to start an airbnb or maybe an hotel. Just seeing the pros and cons.

The regulatory risk for a hotel should not be high compared to an “AirBnB”, since hotels are clearly commercial and usually built in a location that is zoned commercial.

You’d have to develop a business plan and budget for both options

Just because you can have more guests or rooms doesn’t necessarily make it more profitable. There’s a multitude of factors that can affect profitability .

What actual market research and business planning have you carried out on each model?

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There is no such thing as an “AirBnB”.

I suggest you start informing youself about correct terminology first.
Else your investment is doomed anyways.

AirBnB is just one of many bookingplatforms.

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There certainly is such a thing; I have one as do most the people on this forum. What you object to is the stroke of luck Airbnb had when their brand name became synonymous with “short term rental,” at least here in the US.

Oooooh, one of my favorite topics: proprietary eponyms. These are terms that were brand names that become the word commonly used to refer to all of the same kind of item regardless of the brand. Kleenex, band-aid and frisbee are 3 of the more ubiquitous ones. No one uses any term other than these in the US. And hoovering is a verb derived from a brand name that is commonly used in the UK for vacuuming. It also has another meaning in pop psychology now.

Even if the company were to be sold or go bankrupt the noun and verb use of airbnb is probably with us forever.

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Xerox is another classic example of genericization, so much so Xerox asked their employees and dealers not to refer a copy as a Xerox not to loose their brand name.

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And hoover is another one:)…

Yes. But interestingly, only among British English users.

Yes that’s interesting. Tupperware is another brand that has become synonomous with the product.

Not sure why @Chris has got his knickers in a twist. Lots of hosts and guests use Airbnb as a short hand for short term rentals.

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Hoover is common to me as a reference to inhaling food like eating quickly, snacking a lot or constantly searching out food. We often refer to our dog as hoover or tell her to stop hoovering, “get out of the kitchen and stop hoovering”. It’s obviously an allusion to vacuuming but when I clean the house I don’t hoover, I vacuum.

Some others that I’m guilty of: qtips, bandaids, thermos, jello, chapstick, frisbee, scotch tape

And in Texas, we call all sodas cokes. It’s the first thing I always notice when I come back to visit:

“…and we’ll also get two cokes”.
“What kind?”
“I’ll have a Dr Pepper and she’ll have a Diet Pepsi.” :rofl:

Of course I can’t speak for @Chris but the gist I got was purely that you shouldn’t limit yourself by only listing on Airbnb because

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And lots of us don’t. I hate it being called an “AirBnB” because my property does not belong to AirBnB. Don’t you think “Puffs” (Proctor and Gambles’ brand of facial tissues) hates being called “Kleenex”?

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I didn’t say I did - I said a lot of hosts and guests do. @PitonView . It doesn’t bother me how they refer to their STRs.

Sorry never heard of ‘puffs’, but yes I’m sure lots of competitor brands hate the fact that common brand names are used generically for a product.

That’s right those are brand names; been using those names all my life and didn’t dawn on me they are brand names.

One difference I think is there are a lot of different investment models for Airbnb’s, the arbitrage model has allowed many people to benefit from the Airbnb industry with minimal investment which I don’t think you will find as well represented in the hotel model. I think there are many different models in the Airbnb world and simply running out of room to controlling literally dozens of properties without wanting them to doing new custom builds specifically for Airbnb rentals and and on