Bahamas Vacation Rental Market Report

Bahamas 2019 Vacation Rental Market Report

The vacation rental industry has seen tremendous growth over the past 20 years and many experts predict that by 2020 it will surpass the traditional hotel room.  Goldman Sachs data showed. "We find it interesting that people 'do a 180' in their preferences once they use P2P (peer to peer) lodging. They move directly from preferring traditional hotels to preferring P2P accommodations.” An internal study by a Washington State based company, Seattle Oasis Vacation Rentals revealed that 52% of visitors "would NOT have even come to Seattle if vacation rentals were not an option." These represent trends that are beginning to impact the world's greatest destinations.  

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INTRODUCTION 

The vacation rental industry has seen tremendous growth over the past 20 years and many experts predict that by 2020 it will surpass the traditional hotel room.  Goldman Sachs data showed. "We find it interesting that people 'do a 180' in their preferences once they use P2P (peer to peer) lodging. They move directly from preferring traditional hotels to preferring P2P accommodations.” An internal study by a Washington State based company, Seattle Oasis Vacation Rentals revealed that 52% of visitors "would NOT have even come to Seattle if vacation rentals were not an option." These represent trends that are beginning to impact the world's greatest destinations.   

In The Bahamas, the Central Bank’s March 2019 report revealed, “Preliminary indicators for the short-term rental market in January were also improved, as data from AirDNA showed a 37.0% advance in total booked listings, relative to the same period in 2018, with gains in both entire place bookings (34.9%) and private room bookings (44.9%). Meanwhile, the ADR for hotel comparable listings- which is more comparable across periods- firmed by 5.0% to $142.40; however, the ADR (average daily rate) for entire place listings decreased by 1.7% to $330.35.

A breakdown of the short-term rental data, revealed that the dominant New Providence market noted gains in both the entire place and private room bookings, of 23.7% and 25.8%, respectively; although increased competition contributed to the decline in the respective ADRs by 9.0% and 2.1% to $266.46 and $118.18. Away from the capital, the majority of the listings relate to the entire place category. In Exuma, the inventory for this segment rose by 43.8%, while the associated ADR firmed by 19.0% to $406.0. Similarly, in Abaco and Grand Bahama, entire place listings advanced by 32.7% and 50.0%, respectively. Conversely, the ADR for Abaco and Grand Bahama contracted by 26.6% to $264.49 and by 5.8% to $171.01, placing them at the more affordable end of the spectrum.

DATA DRIVEN – The purpose of this report is to provide the Bahamas real estate industry comprising renters and owners, buyers, sellers, developers, lenders, agents and its associate professionals with a baseline study of the vacation rental market in the Bahamas.  The information in this report is extracted and analyzed from AirDNA which is comprised of rental data from Homeaway and AirBNB. Over 4,200 properties comprising of the entire home have been used in this report and it is important to note that NOT ALL vacation rentals in The Bahamas are reported through AirBNB and Homeaway however at the present time this is the most centralized public data system of which to comprise a market report.  The key data extracted for this report for all transactions are average daily rate, monthly occupancy rates, annual income, average bedrooms and average guests per rental.

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

REAL ESTATE THAT BENEFITS FROM A WORLD CLASS MARINE ENVIRONMENT

“The national park system of The Bahamas, comprising approximately 2.2 million acres of both terrestrial and marine areas, was created, and is managed by, The Bahamas National Trust, a private-public collaboration established by an act of Parliament in 1959. 

Uniquely, the Trust is the only such non-governmental entity in the world responsible for the management of a country's national park system.

In 2019, the BNT will celebrate its 60th anniversary. During the past six decades, the Trust has helped to: "conserve and protect Bahamian natural resources", while serving as a "powerful force for [regional] and global biodiversity conservation.” 

Through passion and courage, a commitment to education and excellence, respect for others, and through integrity, transparency and accountability the Trust has helped to conserve and celebrate the archipelago of biodiversity that is our common wealth of national parks and protected areas. 

Over the next five years, the Government of the Bahamas will collaborate with the Trust as it implements the 2018-2022 Strategic Plan. This will include ongoing efforts to address climate change, combating the effects of plastics on our environment, and other measures to conserve our natural environment and to educate Bahamians about our shared environmental trust.” Dr. The Hon. Hubert A. Minnis, Prime Minister Of The Bahamas.

The Bahamas National Trust plays a critical role in safeguarding the biodiversity of The Bahamas as well as the function of its ecosystems and the services they provide to Bahamian people. The Bahamas National Trust also plays a pivotal role in supporting research efforts to better understand the species and ecosystems of The Bahamas and developing the tools and strategies needed to protect and restore them.

Dr. Craig Dahlgren - Perry Institute for Marine Science