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Report Indicates $76M in Miami Airbnb Revenue Came From Illegal Practices

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62% of revenue in Miami

In what was intended to be a peer-to-peer business model, Airbnb is being manipulated in Miami, where a new report indicates 62 percent of revenue came from operators listing multiple units for rent.

It is the highest percentage of the 14 cities studied by the American Hotel & Lodging Association. Other findings:

  • Nearly 40 percent of Airbnb's revenue in Miami sources from full-timers, considered those who list their units over 360 days per year
  • 76 percent of revenue (over $93 million) came from 30 percent of operators

Essentially Airbnb has been largely commercialized in the Miami area, which is irking hotel owners as it affects their bottomline.

"Unregulated hotels operated in residential properties are disruptive to communities and pose serious safety concerns for guests, for communities and for neighborhoods," said AH&LA President and Chief Executive Officer Katherine Lugar. "In Miami, as in cities around the country, we have seen that Airbnb is unwilling to be transparent with its data and be a partner in creating safe environments for its users and the communities in which it operates. And now we know why: a growing portion of Airbnb’s revenue comes from commercial landlords using the platform to operate unregulated and often illegal lodging businesses. This problem is particularly acute in Miami, where – more than in any of the 14 cities studied – multi-unit and full-time operators drive Airbnb’s revenue."

"As in many popular tourist destinations across the country, commercial landlords here in Miami are using short-term rental platforms like Airbnb to operate illegal hotel businesses that dodge taxes and duck rules and regulations that were put in place to protect our guests and the communities where we operate," said Stefano Frittella, owner of the Pelican Hotel in Miami. "Furthermore, by driving up the cost of rent in the Miami area, illegal hotel operators on Airbnb are exacerbating the housing crisis that is hurting so many working families in Miami, making it harder to live and work in our communities."