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Marriott Competing with Airbnb: What It Means for STR Hosts

By James Svetec · October 6, 2020 · 8 min read

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Key Takeaways

  • Marriott's STR-style rental division saw 700–800% growth in bookings and revenue compared to its traditional hotel operations, which collapsed under pandemic pressure.
  • Even with massive brand power, Marriott's ~10,000 listings barely dents Airbnb's multi-million-property marketplace — the real competitive threat is still years away.
  • Travelers are choosing private, whole-home rentals over hotels for privacy, remote check-in, and control — a structural shift in accommodation preference that continues in 2026.
  • Co-hosting (managing other people's Airbnbs) is one of the lowest-barrier ways to capitalize on this growing demand without owning property or spending capital upfront.
  • Adaptability is the key differentiator for top-performing STR hosts — from flexible cancellation policies to updated amenity offerings that match what guests actually want.

The short-term rental industry has a new and unexpected signal confirming its long-term strength: a blog video breakdown of Marriott's own data showing its STR division growing 700–800% while its core hotel business cratered. For anyone serious about Airbnb hosting or co-hosting, this isn't just a curiosity — it's a blueprint for understanding where travel dollars are flowing and why.

Watch the full video above or keep reading for the complete breakdown.

How Marriott Entered the Short-Term Rental Market

For years, major hotel chains fought the short-term rental industry. They lobbied against Airbnb regulations, complained about unfair competition, and tried to protect their traditional model. Then something shifted.

In the fall of 2019, Marriott — one of the world's largest hotel companies, with millions of rooms across hundreds of brands — quietly launched its own STR-style platform. The concept was simple: list entire properties, villas, and high-end vacation homes for direct booking by Marriott loyalists who didn't want a standard hotel room.

It was a classic "if you can't beat them, join them" pivot. And the early results, as covered in this blog video, were staggering.

The platform started small. By 2020, it had grown to approximately 10,000 listings — a fraction of Airbnb's millions of properties, but meaningful growth for a company brand-new to the segment. More importantly, that small division was performing in a completely different direction than the rest of Marriott's business.

The 800% Growth Story: What Marriott's Numbers Actually Tell Us

Here's where the data gets genuinely remarkable. While Marriott's traditional hotel operations were suffering some of the worst declines in the industry's history, its short-term rental division was going in the opposite direction entirely.

Booking volume grew approximately 700% year-over-year. Revenue grew approximately 800%. Same brand, same parent company — completely different trajectory.

To be clear about context: this STR division was still a tiny slice of Marriott's overall business. The 800% revenue jump didn't rescue the company from its broader pandemic-era losses. But the direction of that growth, and the speed of it, tells a powerful story about where accommodation demand is heading.

What makes this data so compelling is the controlled comparison. This isn't Airbnb outperforming Marriott as separate companies. This is the same company, the same brand, the same customer base — with two completely different accommodation models producing completely opposite results. The variable isn't marketing. It's the style of accommodation.

For STR hosts and investors analyzing the market in 2026, that distinction matters enormously. The data isn't about brand strength or corporate resources — it's about what guests fundamentally want from their travel experience.

If you want to understand how to evaluate market trends like this and apply them to actual investment decisions, the BNB Investing Blueprint offers a structured framework for reading market signals and identifying STR opportunities before they peak.

Why Travelers Are Choosing STRs Over Hotels

The growth in Marriott's STR division wasn't random. It reflected a clear shift in what travelers actually want — and that shift hasn't reversed in 2026. If anything, it's become a permanent feature of how people travel.

Several factors are driving the preference for whole-home rentals over hotels:

  • Privacy and space: Guests don't share walls, lobbies, pools, or ventilation systems with strangers. A rented home or villa is entirely theirs for the stay.
  • Remote check-in: Keypad entry and self-check-in mean guests can arrive at any hour without interacting with staff. It's frictionless and flexible.
  • Amenities that hotels can't match: Full kitchens, laundry, outdoor spaces, private pools — these aren't add-ons in a vacation rental, they're standard.
  • Better value for groups: A family or group of friends splitting one rental is almost always cheaper per person than booking multiple hotel rooms.
  • Authenticity: Travelers increasingly want to experience a destination like a local, not from a standardized hotel corridor that looks the same in every city.

These aren't temporary pandemic preferences. They represent a structural change in traveler expectations — one that short-term rental platforms were built to serve and that hotels are now scrambling to adapt to.

For a deeper look at how STR platforms compare on these fronts, the comparison of Airbnb, HomeAway, VRBO, and Booking.com breaks down where each platform stands today.

Airbnb's Resilience: Growing Even When Everything Else Was Falling

The Marriott story is striking, but Airbnb's own performance during the same period is arguably more impressive. When hotels were seeing occupancy rates collapse to historic lows, Airbnb was still recording year-over-year increases in bookings in major U.S. markets.

That's not a small detail. When flights were grounded, international travel was halted, and most hospitality businesses were in crisis, Airbnb's overall booking volume in the U.S. was still higher in 2020 than in 2019. The model proved genuinely resilient in a way that hotel accommodations simply weren't.

Part of the explanation is geographic flexibility. STRs exist in rural areas, lake towns, mountain destinations, and beach communities that are impossible to reach by hotel chain. When city travel dropped off, domestic leisure travel to these alternative destinations surged — and Airbnb captured nearly all of it.

Part of it is also the nature of the experience. People who weren't comfortable flying across the country were still willing to drive two hours to a private cabin with a hot tub. The product matched the moment.

In 2026, those same dynamics continue to favor the STR model. Remote work flexibility means guests can take longer trips to STR-friendly markets. Domestic travel remains strong. And the desire for private, comfortable, non-hotel experiences isn't going anywhere.

For hosts wondering whether this model holds up under economic pressure, this breakdown of Airbnb's recession resilience covers how the STR model performs in different economic climates.

The Co-Hosting Opportunity Hidden Inside This Trend

Here's the part that doesn't get enough attention in the broader industry conversation: the growth in STR demand doesn't only benefit property owners. It creates a substantial opportunity for people who want to participate in the market without owning real estate.

Co-hosting — managing other people's Airbnb properties professionally — is one of the most capital-efficient ways to build income in the STR space. The host owns the property. You handle the operations: listing optimization, guest communication, pricing, cleaning coordination, and ongoing management. In exchange, you earn a recurring monthly management fee.

According to BNB Mastery's frameworks, a well-run co-hosting arrangement typically generates between $700 and $1,200 per property per month in management fees. Manage five properties and that's $3,500–$6,000 per month in recurring income — without a single dollar invested in real estate.

Why does the Marriott trend matter for co-hosts specifically? Because it confirms that property owners are increasingly aware of the STR opportunity but often lack the time, skills, or interest to manage it properly. That's exactly the gap co-hosts fill.

When the market is growing and hosts are stretched thin, the value proposition of a professional co-host becomes obvious. A property that earns $2,000/month under hands-off management can often earn $3,500/month under professional co-hosting — even after the management fee comes out, the owner still nets more.

For anyone considering building a co-hosting business, BNB Mastery's Co-Hosting Program provides a step-by-step system for landing clients, setting up operations, and scaling to multiple properties without upfront capital or prior experience.

You can also explore the different paths into the STR market in this side-by-side comparison of Airbnb hosting, co-hosting, and investing to figure out which model fits your situation best.

Adaptability: The Skill Every Host Needs Right Now

One consistent theme in any analysis of the STR market — whether from Marriott's data or Airbnb's own metrics — is that the industry rewards adaptability. The hosts who struggle are usually the ones who set up their listings once and expect the market to come to them.

The hosts who consistently outperform are watching what guests actually want and adjusting accordingly. In 2026, that means paying attention to a few specific areas:

Cancellation Policy Flexibility

Guests increasingly filter by cancellation flexibility before they even look at photos or pricing. A rigid no-refund policy might protect one booking but cost five others. The most effective approach is offering flexible or moderate cancellation and pricing accordingly — most guests will pay a small premium for the peace of mind.

Amenity Relevance

What guests want from an STR in 2026 isn't the same as what they wanted in 2019. High-speed internet is now non-negotiable for remote workers who extend leisure trips into working weeks.

Outdoor spaces — private yards, hot tubs, fire pits — consistently outperform properties without them in traveler preference surveys. Proximity to downtown is less important than it once was; the quality of the space itself has taken priority.

Listing Optimization

Marriott entering the STR space means more competition at the premium end of the market. Hosts who invest in professional photography, detailed listing descriptions, and optimized pricing strategies are pulling further ahead of the average listing. The bar for what counts as a competitive listing has risen.

For practical listing improvements, these three Airbnb listing tips cover the highest-impact changes hosts can make today.

Staying connected to other hosts who are navigating these same challenges is one of the fastest ways to improve. The BNB Tribe community gives hosts access to ongoing coaching, peer support, and real-time market insights that make adapting to change much less guesswork.

What This Means for Your STR Business in 2026

The Marriott story, covered in this blog video, is ultimately a data point confirming something experienced STR hosts already know: the demand for private, whole-home rental experiences is not a trend that's going away. It's a structural shift in how people travel, and the numbers back it up decisively.

For property owners, the implication is clear — a well-managed STR will consistently outperform a hotel-style rental strategy in most markets. For co-hosts, the opportunity is arguably even more compelling: there are thousands of property owners sitting on underperforming listings who need exactly the help a professional co-host can provide.

The hosts who will win in 2026 and beyond aren't the ones waiting for the market to stabilize. They're the ones adapting their listings, building strong management systems, and positioning themselves in markets where demand is outpacing supply. The window for getting in early on this industry growth is still open — but it won't be forever.

Frequently Asked Questions

Is Airbnb still growing in 2026 despite hotel competition?

Yes. Airbnb and the broader STR sector continue to grow in 2026 as travelers increasingly prefer private, whole-home rentals over traditional hotels. Marriott's own data showed its STR division growing 800% while hotel bookings collapsed — a signal of where long-term travel demand is heading.

How is Marriott competing with Airbnb?

Marriott launched a short-term rental platform in 2019 that lists entire villas and vacation homes for booking by its loyalty members. While the platform had roughly 10,000 listings compared to Airbnb's millions, Marriott's STR division still grew 700–800% faster than its traditional hotel business during the same period.

Can I start an Airbnb co-hosting business without owning property?

Yes. Co-hosting means managing someone else's property on Airbnb in exchange for a monthly management fee, typically $700–$1,200 per property. You don't need to own or rent the property yourself — just the skills to manage it effectively and the ability to find willing property owners.

Why are short-term rentals more resilient than hotels during downturns?

STRs offer private, self-contained accommodations with remote check-in and no shared common areas. During periods of uncertainty, travelers prefer the privacy and flexibility of a whole-home rental over crowded hotel corridors. This structural advantage has held across multiple economic disruptions.

What amenities matter most for Airbnb listings in 2026?

High-speed internet, private outdoor spaces (hot tubs, fire pits, yards), well-equipped kitchens, and flexible check-in are consistently ranked as the most important amenities by guests in 2026. Properties offering these features typically see higher occupancy and stronger nightly rates than comparable listings without them.

Marriott's 800% growth figure is a powerful reminder that the STR market rewards those who move early and manage well. If building a co-hosting business — where you earn recurring income managing other people's properties — sounds like the right path, BNB Mastery's Co-Hosting Program walks you through exactly how to land your first client and scale from there. And if you want ongoing support and real-world insights from other active hosts, the BNB Tribe community is where that conversation is happening every day.

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