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“Short-Term Rentals vs Hotels: What National Trends Mean for Boise Commercial Real Estate”

by | Apr 20, 2026 | Boise, Idaho

Short-Term Rentals vs. Hotels: What National Trends Reveal for Boise Commercial Real Estate

Not all competition in real estate is obvious.

Sometimes it’s not building vs. building—it’s product vs. experience.

And right now, one of the biggest shifts happening in hospitality real estate isn’t new hotels—it’s the rise of short-term rentals.

According to reporting by Michael Stathokostopoulos of CoStar Analytics (read the original article here: https://product.costar.com/home/news/881353883), short-term rentals now capture roughly 18% of hotel demand nationwide—but that share varies dramatically depending on the market.

For anyone watching Boise commercial real estate, this is more than a hospitality stat. It’s a signal about how demand is fragmenting—and where opportunities are forming.

What’s Really Driving the STR vs. Hotel Divide

At a national level, the data tells a nuanced story.

Yes, short-term rentals (STRs) are a meaningful part of the lodging ecosystem.
But they’re not impacting every market the same way.

Here’s what stands out:

  • STR presence ranges widely—from under 10% of hotel supply in some major cities to over 30% in others
  • Leisure-heavy markets like Phoenix, Miami, and Orlando show the highest levels of STR penetration
  • More urban, business-driven markets tend to have lower STR influence

But the most important insight?

Not all STR inventory directly competes with hotels.

When you isolate the segment that most closely overlaps—one-bedroom units—the competitive pressure drops significantly in most markets.

That means headline numbers can be misleading.

Why This Matters for Boise Hospitality and Development

Boise sits in an interesting position.

It’s not purely a leisure destination—but it’s not a traditional corporate hub either. It’s a hybrid market, and that matters.

Here’s how these trends connect to Boise development and investment strategy:

1. STR Growth Doesn’t Equal Direct Hotel Competition

One of the biggest misconceptions in hospitality real estate is assuming every STR booking replaces a hotel stay.

In reality:

  • Larger STR units often serve families or extended stays
  • Hotels still dominate business travel, group bookings, and events
  • The overlap happens most in smaller, one-bedroom-style accommodations

For Boise investors, this means:

  • STR growth should be monitored—but not overestimated
  • Hotels with strong business or event demand may be more insulated
  • Product positioning matters more than total supply counts

2. Boise’s Demand Mix Will Shape the Outcome

Markets with strong leisure appeal tend to see more STR pressure.

Boise has:

  • Growing tourism appeal
  • Outdoor recreation demand
  • A rising profile as a destination city

But it also has:

  • Government and business travel
  • Regional corporate activity
  • Events and group demand

That mix creates a balanced competitive environment between hotels and STRs.

3. Regulation Will Play a Bigger Role Than Supply

Another key takeaway from the national data:

STR growth is increasingly influenced by local regulation, not just demand.

Many cities are:

  • Limiting STR permits
  • Restricting investor-owned units
  • Tightening zoning rules

For Boise, this is a major variable:

  • Future STR supply could be constrained by policy
  • Hotel development could benefit if STR growth slows
  • Investors need to watch local rules just as closely as market demand

Local Market Impact: What Boise Should Watch

As this trend continues, here are the key signals to track in Boise:

  • Are STR listings growing faster than hotel rooms?
  • Is demand shifting toward smaller, hotel-like units?
  • Are regulations tightening or loosening?

These factors will determine whether STRs become a major competitor—or simply a complementary option.

My Take: This Is About Positioning, Not Competition

From a Boise commercial real estate perspective, this isn’t a zero-sum game.

Hotels aren’t disappearing. STRs aren’t going away.

Instead, the market is segmenting.

The winners in this next phase will be the operators and investors who understand:

  • Who their customer is
  • Why that customer is traveling
  • What type of space best fits that need

Because in today’s market, it’s not just about location.

It’s about matching the right product to the right demand.

And that’s where real opportunity lives in Boise commercial real estate.

Mike Gioioso (joy-OH-so) has for 16+ years been helping companies of all sizes buy, build, and lease perfect places for business in greater Boise, Idaho and beyond.
www.streetsmartidaho.com mike@streetsmartidaho.com 208-209-9166

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