Airbnb runs 'illegal hotels' claims hotel industry group

A study paid for by the American Hotel & Lodging Association's (AH&LA) found that nearly 30% ($378m) of Airbnb's revenue in 12 of the largest US cities came from professional landlords and properties available to rent 360 days p.a. The AH&LA concluded these units essentially amount to illegal hotels, and has accused Airbnb of being "a platform for dodging taxes, skirting laws and flouting health and safety standards". 

Landlords operating illegal hotels are raking in big bucks on Airbnb, according to a new study, funded by the hotel-lodging industry.

The study found that multi-unit hosts, who operate two or more units, accounted for nearly 40 percent of Airbnb's total revenue for the year of $1.3 billion — or roughly $500 million in revenue.

The study, released Wednesday, was conducted by researchers at Penn State University's School of Hospitality Management, and the American Hotel & Lodging Association paid for the data. The association is a trade group and has been critical of Airbnb in the past. Airbnb disputes the research.



The study also found nearly one-third of Airbnb's $1.3 billion in revenues over a year, or $378 million, came from full-time operators renting out their units for 360 days per year in 12 of the nation's largest metro areas. Broken down individually, that amounted to $142,331 that each host earned using Airbnb.



The new data suggests a lot of activity on Airbnb centers around homes and properties that are owned by professional or commercial landlords, rather than individuals or families renting out their primary homes for short-term rentals.

"Unfortunately, this report shows a troubling trend as a growing number of residential properties are being rented out on a full-time, commercial basis, in what amounts to an illegal hotel," said Katherine Lugar, chief executive of the association. She went on to say that Airbnb is being used as a "platform for dodging taxes, skirting the law and flouting health and safety standards."

However, the San Francisco-based start-up disputed the study and said, "The overwhelming majority of Airbnb hosts are middle-class people who occasionally share the only home in which they live," said a spokesman in an email to CNBC. "This study shows the hotel industry gets what it pays for, which in this case is a specious study intended to mislead and manipulate."

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