Hotel CEOs say they can “co-exist” with Airbnb

At the recent New York University International Hospitality Industry Investment Conference, Hilton Worldwide CEO, Christopher Nassetta, explained that he believes global hotel firms and Airbnb can “co-exist”, stating: “We watch them closely and it’s not all bad what they are doing…”. Nassetta also confirmed that he speaks to Airbnb executives often, and has met the CEO, Brian Chesky, several times. Furthermore, Marriott International chief Arne Sorenson stated that he sees the home-sharing business becoming a less concerning rival, as it enters “Phase two” of its evolution with entrepreneurs creating “micro hotels that are starting to compete more like us.”

It may be like the Hatfields sitting down with the McCoys, but some hoteliers are actually learning to live with Airbnb.

“We can co-exist,” said Hilton Worldwide Chief Executive Christopher Nassetta. “We watch them closely and it’s not all bad what they are doing.”

Nassetta, who spoke at the New York University International Hospitality Industry Investment Conference on Monday, said he speaks with Airbnb executives “a lot” and has met CEO and co-founder Brian Chesky several times.

At the same time, Marriott International chief Arne Sorenson sees the home-sharing business becoming a less potent rival, entering into “Phase two” of its evolution with entrepreneurs creating “micro hotels that are starting to compete more like us.”

These hotels are residential units that are not used as primary homes but as investments, according to Sorenson.

The hotel industry has been one of the most outspoken critics of Airbnb — arguing that it represents unfair competition by not paying room occupancy taxes and is not held to the same safety standards as hotels.

The Hotel Association of New York City described Airbnb as “unregulated and [providing] potentially unsafe facilities.”

But industry heavyweights are also embracing the home-sharing model.

Choice Hotels International, which operates such budget brands as Comfort Sleep, Clarion and Sleep Inn, in February became the first hotel company to create a vacation home rental unit when it partnered with rental management companies.

“Ours are all rental properties, mostly in resort areas or near amusements,” said Choice CEO Stephen Joyce. “We have a robust interest in this industry.”