Unlocking the Potential: Top 15 Most Profitable Airbnb Cities in 2023
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In this article, we’ll look at the 15 places in the world where Airbnb makes the most money. Read this article about the 15 Most Profitable Airbnb Cities in the World.
Several traditional businesses have been shaken up by the growing number of people who can connect to the internet. The smartphone is a big reason for this. Some of these are the media, business, communications, and hospitality.
In the hospitality industry, apps like Airbnb, Inc. (NASDAQ:ABNB) have given travelers the chance to stay in places that feel more like the cities they’re visiting. They’ve also made it possible for travelers to go to more places than they might have been able to before because there weren’t enough hotels.
In fact, the number of key areas that hotels don’t serve is much bigger than you might think. For example, the Republic of India, which is the world most populous country and has one of the largest economies, is one of the most underserved hotel areas on the planet. Colliers Hong Kong has found that India only has 2.6 million hotel rooms, even though it plans to have around 30 million tourists every year by 2030. Keep in mind that these hotel rooms aren’t just for guests from other countries; they also have to meet the needs of people traveling within the country. Because of this shortage and the Indian government’s attention to the industry as a result, hotel giants like Hilton Worldwide Holdings Inc. (NYSE:HLT) and the Radisson Hotel Group have grown a lot in the country.
Japan is another country that doesn’t have enough hotels. The country with the world’s most people lives in the country with the third biggest economy. But there aren’t as many luxury hotels in Japan as there should be based on how much people want them. Forbes only gave five stars to five hotels in Tokyo out of the three thousand hotels there in 2019. Even though the number of foreign guests to Japan has increased by more than three times between 2010 and 2018, the hotel industry can’t keep up with the demand for luxury hotels because most of the hotels are very old and need expensive repairs to meet luxury standards. As of 2023, there are only 56 luxury hotels in Japan. This is a lot less than the 117 hotels in China or even the 68 hotels in Indonesia.
At the same time, companies like Airbnb and Vrbo from Expedia Group, Inc. (NASDAQ:EXPE) give visitors the chance to stay in places that feel like home. When looking at the best Airbnb places in the world, the company’s own data shows that, based on searches on the platform, Bangkok, Thailand was the best. And Airbnb thinks that Madrid, Sydney, and Melbourne could be good places to visit in 2023. But what if you wanted to buy an Airbnb outside of a big city? Well, Bend, Oregon, Ithaca, New York, Bay Arbor, Michigan, Grand Lake, Colorado, and Kenai, Alaska are all great places to invest in Airbnb in small towns that might be worth your time. But, as you’ll see below, big towns often have the most expensive rentals. So, if you want to invest in Airbnb for 2023, its own summer travel forecast says that Bali, Indonesia, Barcelona, Spain, London, United Kingdom, Rouen, France, and Grindelwald, Spain, are some hot places right now.
But not everyone is ready to make a big investment like buying a new house or apartment. Well, arbitrage is a way to make money on Airbnb without spending any money. This is done by getting a place and then putting it on Airbnb. This way, the renter can make some money and still make sure to pay the rent on time. It’s more of a science to figure out which places are best for Airbnb arbitrage. First, you have to look at the number of rental units in a city. Then, you have to make sure the owner is okay with subletting. Finally, you have to figure out how much to spend on furniture and other amenities to get started with Airbnb. Airbtics, a site that tracks Airbnb, says that San Antonio, New York City, Las Vegas, San Diego, Chicago, and Miami are some of the best U.S. places for Airbnb arbitrage.
But before you think about putting money into Airbnb, you should look at how the market is doing. In its news conference for the first quarter of 2023, the company’s management said:
Let’s look at some of Airbnb’s most profitable cities.
Before making our list of the most valuable Airbnb cities in the world, we made a list of more than sixty cities that were popular for Airbnb investments on many different websites. Then, for each of these, the average rent for a one-bedroom unit was figured out. After that, the top 25 Airbnb towns were chosen. Then, the average price of an apartment with one bedroom in each place was found. Finally, the number of years it would take to make back the average apartment price was calculated, and the cities with the fewest years were chosen as the most profitable Airbnb places in the world.
15 Most Profitable Airbnb Places Around the World
1. Fairbanks, USA
Estimated Number of Years to Recover Investment: 2.06
The largest city in the interior of the U.S. state of Alaska, Fairbanks is the state’s second largest city overall. The city’s main draws are its animals and natural attractions; visitors may frequently see the northern lights there. It also hosts the Eskimo Olympics and a sizable parade. Additionally, Fairbanks does not have a significant presence of hotel industry behemoths, and Airbnb apartments there typically cost around $150.
2. Darwin, Australia
Estimated Number of Years to Recover Investment: 6.38
Australia’s northernmost city is called Darwin. Although it is one of Australia’s smaller cities, its position makes it a key hub for Australia’s connections to Asia. Due to its position, tourism is one of Darwin’s largest sectors, and the city attracts a large number of travelers from Australia who want to go to Asia. More than 200 rooms are available in Hilton hotels in the city.
3. Dublin, Ireland
Estimated Number of Years to Recover Investment: 6.95
Ireland’s capital city is Dublin. With a population of 17 million, it is also the most populated city in the nation. Dublin is now Ireland’s economic center as a result, and big multinational corporations frequently base their European or international operations there. The Merrion, along with properties owned by Radisson Blu and Hilton Worldwide Holdings Inc. (NYSE:HLT), is one of the best-rated luxury hotels in the city.
4. Boulder, USA
Estimated Number of Years to Recover Investment: 7.30
Colorado is home to the city of Boulder. It is one of the smallest cities on our list and has a population of just over 100,000, making it a good candidate for an Airbnb investment. Universities, medical facilities, and the government are its largest employment. But there are some major hotel chains present in Boulder, like Hilton Worldwide Holdings Inc. (NYSE:HLT) and Marriott International Inc. (NASDAQ:MAR).
5. Milan, Italy
Estimated Number of Years to Recover Investment: 8.51
With almost 1.4 million people residing within its borders, Milan is the second-largest city in Italy. It is one of Italy’s major economic and financial centers. There are numerous prestigious luxury hotels in Milan. These include the Four Seasons, the Park Hyatt, and Mandarin Oriental International Limited (OTCMKTS:MAORF). One of the most expensive cities in the world is Milan. However, the average cost of an Airbnb in the city is between $80 and $90.
6. Washington, D.C., USA
Estimated Number of Years to Recover Investment: 8.79
Hilton Worldwide Holdings Inc. (NYSE:HLT) and Marriott International, Inc. (NASDAQ:MAR) are two of the world’s largest hospitality companies, and Washington, D.C. is where they are headquartered.
7. Copenhagen, Denmark
Estimated Number of Years to Recover Investment: 9.52
Denmark’s capital city is Copenhagen. Naturally, Radisson and Marriott International, Inc. (NASDAQ:MAR) are also present in the city.
8. Chula Vista, California
NuEstimated Number of Years to Recover Investment: 9.96
The American state of California contains the city of Chula Vista. It has a population of almost a quarter of a million people and few large hospitality companies.
9. Canmore, Canada
Estimated Number of Years to Recover Investment: 10.24
Alberta, Canada is home to the town of Canmore. There are about 15,000 people living in this small town.
10. Hilo, USA
Estimated Number of Years to Recover Investment: 10.34
Hawaii, a tropical U.S. state, has the town of Hilo. With a population of 44,186, it is a relatively tiny location that is ideal for an Airbnb, especially since there aren’t many major hotel chains there.
11. Boston, USA
Estimated Number of Years to Recover Investment: 10.63
One of the most advanced and affluent American cities is Boston. Naturally, it has a favorite list of opulent accommodations, which includes Ritz Carlton by Marriott.
12. Brisbane, Australia
Estimated Number of Years to Recover Investment: 11.32
The Queensland state of Australia has Brisbane as its capital. There are 2.5 million people living there, and Marriott International, Inc.’s (NASDAQ:MAR) JW Marriot is one of the city’s top luxury hotels.
13. Montreal, Canada
Estimated Number of Years to Recover Investment: 12.19
One of Canada’s most advanced cities is Montreal. It is the second most populous province in Canada and the country’s economic center, with a population of around two million.
14. Charleston, USA
Estimated Number of Years to Recover Investment: 12.21
The largest city in the American state of South Carolina is Charleston. It is the state’s port hub and home to slightly more than 150,000 inhabitants.
15. Ann Arbor, USA
Estimated Number of Years to Recover Investment: 13.44
The American state of Michigan contains the city of Ann Arbor. It is home to more than 100,000 people, and InterContinental Hotels Group PLC (NYSE:IHG) and Marriott International, Inc. (NASDAQ:MAR) own some well-known hotels in the region.