Investment Opportunity
Evolving Travel Trends Align with STR Demand
The demand for short-term rentals (STRs) has consistently surpassed that of hotels, fueled by shifts in travel behavior such as "bleisure" travel (combining business and leisure) and extended stays. From Q1 2022 to Q2 2023, while hotel demand declined by 0.6%, STR demand grew by 11.7%. STRs have benefited from preferences for less densely populated areas, offering more space and flexibility for work and leisure. These trends, accelerated during the pandemic, position STRs as a more attractive option compared to traditional hotel accommodations.
short-term rentals DemanD
Small cities and rural areas saw STR demand grow by 24% year-to-date in May 2023, compared to 0% growth in hotels.
Travelers are drawn to these areas for space, privacy, and unique experiences, creating robust demand for STRs.
Slow Travel and Sustainable Tourism
Travelers are opting for longer stays in single locations to immerse themselves in local culture and minimize transportation costs.
The global market for slow travel is projected to grow at a CAGR of 10.5%, reaching $105.6 billion by 2026.
Rise of Remote Work and Digital Nomads
Japan’s affordability and coworking infrastructure attract remote workers and digital nomads.
Digital nomads stay an average of 3-6 months, aligning with STR offerings.
Shift to Non-Urban Areas
Post-COVID, there’s a growing preference for rural and secondary city destinations over densely populated urban centers.