When Airbnb first started, nobody thought the company would outcompete the hotel industry. Airbnb founders once said, “We’re not really replacing hotels,” and hotel chain CEOs believed them. However, the data says otherwise.
In the beginning, alternative lodgings accounted for 10% of the industry. In 2021, the alternative lodging sector took a 20% share of the $300 billion global lodging revenue or 36.06% of the accommodations market in North America.
The alternative accommodations sector has experienced a 45% rise in revenue per available room (RevPAR), compared to traditional hotels which have seen a 7.6% growth. This significant difference in performance suggests that the alternative accommodations sector will continue to disrupt the broader hotel industry economically, socially, and culturally for years to come.
Alternative accommodations are those that fall outside the formal or organized lodging sector. They include short-term rentals like, bed-and-breakfast lodgings, vacation rentals, and homestays. Companies like Airbnb and HomeToGo popularized the idea of ordinary people renting out their houses to make money. Now, thanks to them, the alternative accommodations industry has exploded.
On the other hand, STRs are the biggest threat to the hotel industry by far. Partly driven by a shift in consumer behavior and growth in the “sharing economy,” companies like Airbnb, HomeAway, and Vrbo have become a primary accommodation option rather than an alternative.
Even traditional hotel turf, such as corporate and family vacationers, are now increasingly opting for short-term rentals as people continue to look for more flexible accommodation options.
A report by Boston University describes the societal trends behind the rise of alternative accommodations:
● Beyond luxury: travelers are seeking authentic experiences that go beyond mindless, decadent luxury
● Increased access and mobility: alternative accommodations are cheaper and more flexible, allowing previously underrepresented groups to travel more
● Post-consumerism: society has changed its perception of consumption to be more than material wealth, instead focusing on personal improvement and well-being as well as sustainability
● Changing brand relationships: the new generation of consumers values personal, instant gratification above long-term brand relationships
● Bundled experiences (a co-everything world): travelers get to live, work, and play outside of the traditional constraints of a hotel experience
The new generation of travelers are willing to stay in minimalist guest rooms in exchange for easy access to popular local bars, cafés, gyms, communal social spaces, and workspaces. Many hotels have realized this and are shifting their offerings and marketing this new paradigm, but they’re a decade too late.
Everyone dismissed Airbnb when it first started. The company almost didn’t take off because investors brushed them of claiming others tried the same idea and failed. Yet, the power of Airbnb and similar companies wasn’t in the idea itself but in its implementation.
Airbnb was created with a firm understanding of what users wanted from the start and was designed to provide a highly targeted consumer experience. Co-founder Paul Graham insisted on this from the beginning, saying “You’ve got to go to your users.”
From their user research, the founders found that a sense of community, serendipity, personalization, and ethical consumerism was the most important elements the new generation of travelers wanted. With the help of the global recession of 2008, they worked this into their marketing and grew rapidly from humble beginnings.
Tying all these efforts together was a genius use of technological advancements such as mobile applications to quickly grow their user base.
By making access free for both guests and hosts, Airbnb mobilized users quickly and easily. They added new features such as special host-led activities, including fitness classes and concerts. No hotel at the time could compete with such levels of convenience, affordability, personalization, and unique local “feel.”
Five years after its humble beginnings, Airbnb brought in $250 million in revenue. In 2015, several CEOs of some of the biggest hotel chains visited Airbnb headquarters for a “day of immersion,” showing they still considered the company a friendly contender rather than a serious competitor.
By 2016, Airbnb’s revenue had risen to $1.65 billion. The Marriott CEO at the time, Arne Sorenson, admitted that this competition is one “which we’d be silly to take for granted.” That year, the American Hotel and Lodging Association tried to lobby for stricter regulations against short-term rentals.
More research reveals that in the 10 US cities where Airbnb has the largest market share, hotels suffered 1.3% fewer bookings and 1.5% less revenue. Boston University suggests that in the 10-year period between 2008 and 2017, growth in Airbnb bookings reduced hotels’ revenue per available room (RevPAR) by 2%.
In other words, the hotel industry was right to get frosty about alternative accommodation. Even the luxury hotel segment was hit hard, with a 4% decline in RevPAR that same year while Airbnb continued to grow 100% year on year.
As of 2022, Airbnb has reached a record revenue of $8.4 billion, which represents a 46% growth year over year (YoY). This is despite tough regulations that are starting to trickle in, with cities like NYC and San Francisco banning the listing of unhosted short-term rentals. In a way, the hoteliers got their wish, but they’re likely to have better luck mimicking Airbnb’s business model.
In 2016, AccorHotels acquired two startups offering a “home-meets-hotel” kind of experience aimed at tapping into the home-sharing movement that powers STRs. One of these was Onefinestay, which provides high-end hotel services in luxury homes.
More importantly, hotels are looking to tap into the unique personalization and individualism that STRs offer. Where hotel chains historically thrived on consistency and uniformity, some are now working to provide bespoke experiences to suit travelers’ needs.
The Radisson Group provides a great family experience by allowing guests to choose what kind of room they want, such as one with baby cribs (Radisson) or rooms with bunk beds for those traveling with young children.
For others, it’s about providing tailored vacations with a more local feel, such as the Giraffe Manor’s “Safari Experience” or the “24 hours in Lausanne” experience.
Innovations that focus on providing a better customer experience can also help give hotels an edge. Some include smartphone room keys and interactive screens in lobbies that allow digital self check-in.
These are an important start, but hardly enough to compete with the personality of STRs. Welcoming customers with Earl Grey or custom notes is an unforgettable experience, but it would be better to let them define and create their dream travel experience. Instead, hotels may be better served by embracing their superpower: the personal, human-centered interaction that lies at the heart of the entire hospitality industry
Cities like New York and San Francisco have since banned STRs, and it’s clear that the challenge of alternative accommodation extends far beyond the traditional hotel industry. State and city governments are complaining of reduced housing inventory, but there are more serious risks associated with unregulated STRs.
Some of the most common issues are safety concerns. Numerous reports of assaults and even murders are happening in alternative lodgings because there’s virtually no oversight. Companies managing these platforms are not held directly responsible, so they have low incentive to work on vetting guests and hosts to improve safety.
Parking has also become a big problem for STRs. States like Rhode Island and California are required to institute zoning laws and limit on-site parking. In addition, Mill Valley in California now requires STR hosts to get registered as a business and pay a 10% tax on total turnover.
Such regulations and constraints are likely to continue as local authorities come to terms with the cultural and social effects of alternative accommodations, particularly STRs such as Airbnb, HomeToGo, and Vrbo.
The alternative lodging industry has no doubt woke up the hotel industry to the realities of change. It’s important to adapt to changing consumer needs and expectations to help your hotel business survive these unpredictable times.
NewGen Advisory’s team of veteran hotel industry consultants and advisors are here to help you find and implement the right innovations for your hotel. Talk to us today and we’ll help you conquer the accommodation industry, alternative lodgings and STRs notwithstanding.
Jourdyn leads the strategic marketing initiatives for NewGen Advisory, overseeing brand development, market positioning, communications, and business growth efforts across the firm.
With more than a decade of experience in marketing and business development, Jourdyn specializes in building brands, creating demand-generation strategies, developing thought leadership programs, and executing integrated marketing campaigns that drive measurable business results. Her expertise spans digital marketing, public relations, content strategy, events, social media, lead generation, and corporate communications.
At NewGen, Jourdyn is responsible for shaping and executing the firm’s marketing strategy, ensuring consistent brand visibility across all channels while supporting advisors, clients, and strategic initiatives nationwide. She works closely with leadership to develop campaigns, elevate industry presence, strengthen client engagement, and position NewGen as a trusted advisor within the hospitality investment sector.
Jourdyn holds a Bachelor of Arts in Mass Communication and Media Studies from Arizona State University and a Master of Business Administration (MBA) with an emphasis in Marketing from Grand Canyon University.
Most mornings you’ll find Jourdyn in the gym before sunrise and spending time with her husband and children.
Allysia Howerton joined NewGen Advisory in 2026 as a Pipeline & Transaction Assistant, relocating from St. Louis, MO to Arizona to take on the role. She brings a background spanning property management, client services, sales, and administrative leadership, with a track record of managing complex workflows and keeping transactions moving efficiently from inception to close.
Known for her organization, attention to detail, and relationship-driven approach, Allysia supports transaction management, pipeline coordination, and day-to-day brokerage operations — and is passionate about growing her career within the hospitality real estate industry.
Outside of work, she enjoys discovering new coffee shops and restaurants, traveling to experience new cultures, and spending time with her dogs.
2 years
Josie Numedahl joined NewGen Advisory in July 2024 as a Real Estate Assistant (REA). Originally from Iowa, she relocated to Arizona to pursue her education, graduating from Grand Canyon University in 2022 with a Bachelor’s degree in Marketing and Advertising.
Josie began her professional career as a recruiter in the finance and accounting sector, and brings that client-facing, detail-oriented background to her work at NewGen.
Outside of work, she enjoys reading, hiking, exploring local coffee shops, and spending time with friends.
X years
Anthony is the Staff Accountant for NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC, working directly under CFO Michael Lepore to handle day-to-day accounting functions across all NewGen operations.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Anthony completed coursework at Paradise Valley Community College before co-founding a family business that produced custom-wrapped die-cast model cars for corporate clients — handling vehicle customization, display stands, and branded packaging. Serving as Director of Operations, he gained hands-on experience in management, production workflows, and running a business from the ground up.
Outside of work, Anthony is a lifelong ice hockey player with a passion for motorsports — particularly motocross and classic cars. Among his favorites: the 1963 C2 Corvette Sting Ray, the 1965 Shelby Cobra S/C, and the 1971 Plymouth Hemi ‘Cuda. He hopes to one day own and operate a bookkeeping firm serving small businesses.
X years
Nick serves as Director of Operations for NewGen Worldwide and NewGen Advisory, bringing a detail-oriented, forward-thinking approach to supporting the company’s continued growth. A Minneapolis native, Nick studied at Denison University and the University of Minnesota before making his way to Arizona, where he now lives in Mesa.
He spent a decade in the hospitality industry as a server, bartender, and restaurant manager — hands-on experience that gave him a strong operational foundation and a natural fit within NewGen’s hospitality-focused business.
Outside of work, Nick is an avid writer with a passion for art, photography, and travel, and enjoys documenting his experiences through the lens.
X years
Nycole serves as Chief of Staff at NewGen Advisory, where she trains and manages the Real Estate Assistant (REA) team. She works closely with REAs to ensure agents receive consistent, high-quality support throughout every stage of a deal — from contract to close.
Alongside the Office Manager, Nycole leads onboarding for new agents, REAs, and team members across NewGen Worldwide’s subsidiaries, and has developed a training library to streamline the process for incoming staff. She is also actively involved in evaluating and implementing new platforms to improve agent and REA workflows, while providing leadership with the data needed to monitor KPIs and track revenue goals.
Her background in franchise operations management — spanning startups to scaling franchises — makes her a versatile and valuable member of the NewGen team.
20+ years
Michael is the Chief Financial Officer of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions. Michael and his team oversee day-to-day accounting, budgeting, forecasting, and financial modeling across all NewGen operations.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Michael built over 20 years of experience in accounting, tax, and operations management serving small to mid-sized businesses. He holds active CPA licenses in both New York and Arizona. His career spans public accounting — including a role as Audit Manager at PricewaterhouseCoopers — as well as private accounting and business ownership, giving him a broad, hands-on command of accounting and management functions. That dual perspective allows him to bring both tax strategy and business strategy to bear when evaluating financial decisions. He is a member of the American Institute of Certified Public Accountants (AICPA) and the Arizona Society of Certified Public Accountants (ASCPA).
A proud Italian-American, Michael lives in Scottsdale with his wife, Patty, and their three children, Alyssa, Anthony, and Joey. Outside of work, he coaches ice hockey and has a passion for cooking Italian food.
X years
Kyle is a co-founder, Principal, and Chief Executive Officer of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment firm focused on creative, flexible solutions. Beyond his broad responsibilities as CEO, Kyle’s primary focus is leading Green Card Fund, developing and implementing capital solutions domestically and internationally, and identifying attractive investment opportunities.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, built on business partners Girish Patel and Dan Rama’s lifetime experience in the industry. Kyle’s financial acumen and creative approach to structuring deals help NewGen Advisory clients identify and secure profitable opportunities.
Kyle earned a B.A. in Interdisciplinary Studies from Arizona State University with a focus in Business and Urban Planning. He has long been involved with the Greater Phoenix Economic Council’s (GPEC) International Leadership Council, and in 2016 was elected to the Board of Directors of Invest in the USA (IIUSA), the national EB-5 trade association, where he actively contributes to legislative reform efforts and the permanent reauthorization of the EB-5 program.
Kyle splits his time between company offices in Phoenix, AZ and Washington, D.C. Outside of work, he is an avid reader, global traveler, and snowboarder — and after logging over a million miles as a passenger, he has recently taken to the cockpit, learning to fly himself.
20+ years
Girish Patel is a co-founder and Principal of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions across hospitality and healthcare. Among his core responsibilities are leading strategic initiatives, overseeing financial management, and driving real estate investment acquisitions.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, grounded in Girish’s and business partner Dan Rama’s lifetime experience in the industry. Having grown up in his family’s hotel business as an immigrant, Girish developed a bottom-up understanding of hospitality — mastering operations before becoming an investor, lender, and consultant. That ground-level perspective, tested across multiple economic cycles, underpins his 20+ years as a successful business owner and brings a distinctive depth of insight to NGA’s clients and investors.
Committed to continuous learning and giving back, Girish established the RC Patel Memorial Scholarship for students pursuing careers in real estate investment. He also serves on the Board of Directors of Global Ties Arizona, an organization that strengthens international relationships by making exchange programs more impactful.
X years
Dan is a co-founder and Principal of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions. His primary role is leading NewGen Advisory and serving as its Designated Broker in Arizona.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, built on Dan’s and business partner Girish Patel’s lifetime experience in the industry. Throughout his career, Dan has been involved in the disposition of over $600 million in hospitality assets, advising clients on acquisitions, mergers, and divestitures across the United States.
Dan began his career as a hotel operator and owner in 1994 following his studies at the University of Arizona, going on to build a portfolio as a franchisee of Red Brick Pizza, Holiday Inn, Ramada Inn, and Comfort Suites. He holds General Manager Certifications from Holiday Inn, Motel 6, and Days Inn, and is a Certified Hotel Owner (CHO) with a Certification for Hotel Industry Analytics (CHIA).
Beyond his company responsibilities, Dan is an active industry voice. He serves as an Ambassador with the Asian American Hotel Owners Association (AAHOA) — the largest hospitality owners association in the U.S. — and previously served as its Southwest Regional Director. He also sits on the Board of Directors of the Arizona Lodging and Tourism Association (AZLTA).
Dan lives in Gilbert, AZ with his wife, Chetna, their son Suraj, and their daughter Sonya. Outside of work, he enjoys golf and cheering on the Denver Broncos.
15+ years
Suraj is the Chief Legal Officer of NewGen Worldwide, LLC and a member of its senior leadership team, where he contributes to the operational management and strategic planning of the company and its subsidiaries — including Green Card Fund and NewGen Advisory. NewGen Worldwide is a diversified firm engaged in real estate investments, creative capital solutions, and advisory services for the entrepreneurial investor.
Suraj first served as outside counsel for Green Card Fund and NewGen Worldwide from 2008 to 2014 before joining the organization as Chief Legal Officer. In this role, he leads the company’s legal, regulatory, and corporate governance functions, with responsibility spanning real estate, risk management, contractual relations, and investment strategies. He also oversees the business administration of NewGen Advisory, a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Suraj was Managing Partner of Bhakta & Associates, PLLC, a full-service business law firm where he represented a broad range of clients across acquisitions and sales, corporate structuring, contracts, franchise law, development and construction, and equity and debt financing.
A native of Ohio, Suraj graduated from The Ohio State University in 1999 with a B.S. in Business Administration and earned his J.D. from Case Western Reserve University in 2002. He resides in Peoria, AZ with his wife, Neena, and their two sons, Shiv and Soham.
