Hotel Brands Embrace Vacation Rentals: A New Era in Group Travel Accommodations
Traveling with family or large groups can present challenges, particularly when it comes to finding suitable accommodations. In recent years, home-sharing platforms like Airbnb and Vrbo have risen to prominence as preferable options, offering multi-bedroom rentals that often provide more space and affordability than traditional hotel rooms. However, concerns regarding high fees, inconsistent quality, and unreliable hosts have begun to cloud the picture. As a response to these issues, major hotel brands are now expanding their portfolios to include vacation rental properties, combining the comforts of home with hotel-level services.
The Growing Demand for Short-Term Rentals
Despite the mixed feelings surrounding peer-to-peer accommodations, the demand for short-term rentals remains robust. According to AirDNA, a firm specializing in vacation rental analytics, the demand surged by an impressive 7% year-over-year in 2024, with projections suggesting a continued increase of 4.9% into 2025. This persistent interest indicates that travelers still seek alternatives to conventional hotels, particularly when traveling with family or in larger groups.
Hilton’s Move into Vacation Rentals
In a significant development, Hilton Hotels & Resorts announced a partnership with Evermore Orlando Resort on January 8, 2025. This resort is a sprawling 1,100-acre luxury vacation rental complex featuring a unique blend of accommodations, including 69 houses, 206 flats, and 41 villas. Ranging from cozy two-bedroom apartments to expansive 11-bedroom homes, Evermore is designed to cater to the specific needs of large families and groups.
Developer Christopher Kelsey emphasizes that each home is engineered for family harmony, featuring identical primary bedrooms to eliminate disputes over the "best" room. Furthermore, the property is packed with family-friendly features like bunk rooms and even slides in larger units, promising an entertaining stay for guests of all ages. Beyond the homes, resort amenities comprise an artificial beach complex, golf courses, multiple dining options, and a gym, all coupled with the assurance of on-site staff to assist with any issues that may arise.
However, families should be prepared for higher rates, as the largest unit, which accommodates 32 guests, starts at around $3,000 per night. Yet, when the costs are shared among a full group, this option may emerge as a more cost-effective solution compared to booking multiple hotel rooms.
Other Major Hotels Exploring Vacation Rentals
Hilton’s foray into the vacation rental market is part of a broader trend among major hotel brands seeking to tap into this lucrative sector.
Marriott International offers a significant collection with its Homes & Villas by Marriott International, launched in 2019. With over 140,000 vacation rentals across the globe, Marriott enables its Bonvoy members to earn and redeem points while enjoying vetted properties managed by reliable property management companies. This program encompasses a variety of luxury options, including a villa in Italy that features a sauna and private chef, priced around $3,800 per night. Conversely, budget-conscious travelers can find multi-bedroom homes in popular destinations like Orlando starting at less than $100 per night.
Hyatt has joined the fray with its Homes & Hideaways by World of Hyatt program, launching in 2023 and offering standalone homes overseen by thoroughly vetted management companies. Unlike conventional hotels, these properties often boast full kitchens and dining areas, making them suitable for families looking for a homier experience. The Hyatt Vacation Club provides larger multi-bedroom accommodations through timeshares, presenting opportunities for families to create lasting memories together without the traditional price hikes of high-end resorts.
Timeshare Options from Hilton
In addition to its recent partnership with Evermore, Hilton Grand Vacations has long provided vacation ownership (timeshare) opportunities. This line of business is designed to offer spacious accommodations typically available in timeshare resorts. Properties like the expanded Elara in Las Vegas accommodate both owners and non-owners, blending resort amenities with the comforts of home.
Implications for Today’s Travelers
With big hotel brands increasingly offering vacation rentals, travelers now have more options than ever for group accommodations. Those planning family gatherings or group trips would do well to consider both traditional peer-to-peer rental platforms and the newer offerings from established hotel chains.
The move toward hotel-affiliated vacation rentals provides an opportunity for guests to enjoy more extensive amenities and services while also accruing or utilizing hotel points during their stays. The influx of hotel brands into the vacation rental scene could catalyze competition, potentially leading to improved pricing and a greater variety of choices for travelers.
As the landscape of accommodations continues to evolve, the intersection of traditional hotels and the vacation rental market seems poised to create new and exciting possibilities for group travel.