Hotel developers turning to Airbnb over more expensive Expedia

Hotel developers turning to Airbnb over more expensive Expedia
Hotel developers turning to Airbnb over more expensive Expedia

Hotel developer and operator Paul Fischmann will market rooms in his recently acquired Surry Hills hotel through Airbnb.

He says its because it's a "hell of a lot cheaper than using online travel agents".

Airbnb charges commission rates of about 3%, while online travel agents like Expedia and Booking.com can take up to 20% of a hotel booking.

Fischmann's 8Hotels will develop a new 40-room boutique Surry Hills hotel, after acquiring a 329 square metre site off-market from Colin Rahim and Peter Sukkar, the founders of construction firm Growbuilt.

The new hotel will have a "Lower East Side New York" feel, The Australian Financial Review reported.

The site at 202-210 Elizabeth Street will be developed into a $30 million hotel. It is next to the Triple Ace Bar.

The site had a permit for a boarding house with approval for 38 self-contained boarding house rooms including private bathrooms and kitchens and two ground floor retail shops fronting Elizabeth Street.

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Hotel Airbnb

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