MORE THAN
JUST A BED
Airbnb Property Investments by Dakota Parks • photos by Guy Stevens We all want the same things while traveling: clean sheets, a cozy bed, convenient, safe and affordable lodging locations. But what exactly makes a memorable experience for guests? The high thread count sheets? Complimentary coffee? We spoke to local experts about the influx of Airbnb rental investment properties in the Pensacola region. When the founders of Airbnb, Joe Gebbia and Brian Chesky first created the website (and later app) in 2008, they were short on rent and looking for a solution. They seized their opportunity when a design conference in San Francisco created a shortage of hotel rooms. Both Gebbia and Chesky purchased a few blow-up air mattresses and listed their website called “Air Bed and Breakfast.” Although the company
struggled during its initial years, it is now valued around $38 billion with more than 6 million listings in more than 100,000 cities worldwide, according to Business Insider. The Airbnb platform has exploded with listings. In Pensacola, you can find everything from a $10 a night tent-stay, to a retro RV, customized tiny-house school bus, small cottages and even luxury mother-in-law suites for rent. However, something has changed about Airbnb in recent years. The platform is no longer just a spare room-letting website—it has become a platform for property investors. People are buying property and renovating it for the sole purpose of creating Airbnb rentals and extra income. In 2017, the number of guests utilizing Airbnb rentals in Florida grew by 75% with 2.7 million guests in the state. By 2019, the number of guests has grown
to 6.6 million with a statewide host revenue of $1.2 billion, according to Forbes. Data from the market research company AirDNA shows that the number of Airbnb listings in Pensacola grew from roughly 1,000 listings at the start of 2019 to 1,500 by the end of the year. Not only did the number of active Airbnb rentals increase, but the number of booked listings also increased from 6,000 to 16,000 with higher numbers in the summer months. Kevin Fox, the founder of Foxy Vacations, a boutique rental management company specializes in guest service and rental revenue maximization for its owners. “We live in a destination city. People come from all over the country to enjoy what we have here, so having a vacation rental allows people to come from the outside and invest into our nwflbusinessclimate.com | Business Climate | 13
