The demand for alternative accommodations is up this year, according to BRE Hotels & Resorts. Airbnb, Vrbo and HomeAway lead the sector, with Airbnb the dominant frontrunner.

Airbnb and Vrbo account for 90 percent of the alternative accommodation options in the United States, with 69 percent of Airbnb and Vrbo listings for properties in the South Atlantic, Pacific and Mountain regions. About half of all traditional hotel rooms in the United States are in those regions.

Meanwhile, municipalities are enacting legislation to better govern alternative accommodations. For example, Los Angeles recently restricted rental periods to 120 days; renters must register with their city; and owners can only rent their residence if they spend at least six months per year there. Hawai’i, similarly, restricts unpermitted rental advertisements.

“The alternative accommodation trend is expected to continue to grow but facing headwinds with the threat of expanding regulation on the horizon,” said MaryJo Finocchiaro, executive vice president and chief financial officer, BRE Hotels & Resorts.

“Demand for alternative accommodation is up 35 percent year over year, while U.S. hotel demand is up only 2 percent. While home-sharing was initially launched to focus on the budget-conscious consumer with modest annual income, the paradigm has changed dramatically. According to Skift, 50 percent of affluent consumers have stayed at a short-term vacation rental. What’s more, preference for a traditional hotel room drops from 78 percent to 44 percent once an individual has enjoyed an alternative accommodation, linking a positive home-sharing experience to repeat loyalty business.”