Airbnb Inc.'s room-for-rent business model is hurting New York's hotel industry, at least according to the Hotel Association of New York City.
While most hotel chains have been dismissive of the San Francisco- based startup, the organization that represents them is speaking out about Airbnb's impact on the lodging in- dustry—Airbnb accounted for $451.4 million in gross revenue in New York from Aug. 31, 2014 through the same date this year, according a report commissioned by the association. That number will jump to $805.3 million in 2018, it says.
Airbnb accounted for 2.9 million, or 7.8 percent, of overnight stays in New York in the latest fis- cal year, compared with 33.9 million, or 92 percent, of nightly rentals among hotels, according to the HotelAssociation
The report estimates the loss of $88.9 million in hotel food spend- ing and $1 billion in construction activity. The study says total eco- nomic losses for the city is at $2.1 billion including $76.5 million in lodging taxes.
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