Mar 10, 2017

Hotel industry claims Airbnb operates like hotels

EFFIE YANG via Flickr CC

A CBRE research study backed by the hotel industry reports that hosts renting out multiple entire-home units generated $1.8 billion in revenue in 2016, nearly a third of all revenue from Airbnb. American Hotel Lodging Association said, "That's not home sharing, that's a business." Plus, hosts with 10 or more properties made $175 million last year in host revenue.

An Airbnb spokesman told the Wall Street Journal that the study is "misleading" and an attempt by the hotel industry to protect its business interests.

Revenues are up for entire-home rentals, too: Revenue growth is up by an average of 75% in the markets studied. (Compare that to revenue that almost doubled in 2016 for all Airbnb hosts.)

Why it matters: The hotel industry has long cried out about Airbnb's encroaching business and claim many units rented out operate as hotels. As cities around the world move to push limits on Airbnb, such as limits on the number of days hosts can rent out their units, this study, albeit backed by the industry, gives those moves some clout. This also isn't the first time Airbnb has been criticized over multi-unit hosts: a year ago, outside researchers found that Airbnb had quietly removed listings from such hosts prior to releasing data about its New York City business.

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Fed temporarily lifts Wells Fargo's growth restrictions

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The Federal Reserve said Wednesday it will temporarily lift Wells Fargo’s growth restrictions, which were put in place following the bank’s customer abuse scandals.

Why it matters: The Fed’s only reason for lifting the cap is so Wells Fargo can dole out more loans to struggling small businesses as part of the government’s coronavirus aid package. Earlier this week, the bank said it could only lend a total of $10 billion, thanks to Fed restrictions that it can’t grow its assets beyond $1.95 trillion.

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 12 p.m. ET: 1,450,343 — Total deaths: 83,568 — Total recoveries: 308,617Map.
  2. U.S.: Total confirmed cases as of 12 p.m. ET: 399,979 — Total deaths: 12,912 — Total recoveries: 22,539Map.
  3. Business updates: Roughly one-third of U.S. apartment renters didn't make April payments.
  4. Federal government latest: The U.S. has begun to see "glimmers of hope" despite its highest recorded number of deaths in 24 hours, Anthony Fauci said.
  5. Public health latest: Surgeon General Jerome Adams highlighted the disproportionate impact the illness is having on African-American communities.
  6. World latest: Indians look to Taiwan amid China's coronavirus missteps
  7. 🚌 Public transit: Systems across the country are experiencing ridership collapse, squeezed funding streams and slow recovery from the pandemic.
  8. What should I do? Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Bernie Sanders suspends presidential campaign

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Sen. Bernie Sanders announced Wednesday that he is suspending his presidential campaign.

The big picture: It's an end to the campaign of the leading progressive in the race — and the candidate who seemed to be the clear front-runner for the Democratic nomination just a few months ago. It also makes Biden the presumptive Democratic nominee four months before the party's convention in Milwaukee.