I feel like a snob but I can't stand staying in hotels any more when I'm travelling for fun.
I’ve done the latter with big groups of friends and renting a nice house for a week is a great experience. But I think vacation rental homes of this sort existed well before airbnb
On the other end some hotel brands are pioneering smaller "pod" units to be more competitive with shared rooms/tiny apartments.
I'd generally assume that the economics of maintaining a 10-100 unit hotel are universally better than managing 3 single-family homes if you can maintain "feature-parity".
So many hotel rooms don't feature microwaves. Sure, full kitchens are a fire hazard but a microwave?? Maybe because some has room service and want to push that instead? Or maybe they had room service it ceased but the lack of microwaves stayed like bugs in legacy codebases.
Edit - Examples pulled from the notes from 2019:
Paris - AirBNB $650 a night, 3rd story walk-up ~1900 sq feet apartment with a balcony. Hotel price for something similar? $12,442.00/night. Hotel for a basic room ( ~300sq feet) ? $220/night.
Barcelona - 2nd floor apartment in El Born. ~1500 sq feet. $590/night. 1500 sq feet room in a hotel? There were two in the entire city. Price? ~8k/night. Basic room in a hotel? $180/night. King room in a hotel ( ~370 sq feet! Amazing! ) $440.
I can go on and on.
At below hotel prices AirBnb competes with cockroach infested motels.
I always choose Airbnb because it is cheaper than an ok hotel but almost always better, never worse.
Outliers: gut feeling says less than 5% over 6 years.
Regarding the loss - airbnb is already mature and still generating so much loss? What a bad way to run a business. Would not invest.