Lodging revenues reach $819 million due to hike in short-term rentals

Lodging revenues of $819 million for the first four months of the year were the highest recorded during this period, an increase that can be attributed to a notable rise in the performance of short-term rentals.

By The Star Staff

Lodging revenues for the first four months of the year reached $819 million, marking the highest amount recorded during this period, according to recent data from STR and AirDNA. The increase can be attributed to a notable rise in the performance of short-term rentals.

The data indicates that the hotel industry experienced a 7% increase in revenue. However, vacation rentals outperformed hotels with a notable 21% revenue increase, rising from $240 million between January and April 2024 to $291 million during the same period in 2025.

Other important metrics within the sector also showed improvement. Passenger arrivals at Luis Muñoz Marín International Airport in Carolina increased by 11%, the demand for accommodations rose by 9%, and tax revenues from room rentals saw an 8% boost.

The growth occurs in the context of a challenging travel market. A report from Tourism Economics highlighted that the ongoing international tariff war and anticipated economic slowdown are beginning to impact the tourism industry’s performance. Data from the U.S. National Travel and Tourism Office pointed out a decline in international visitors to U.S. jurisdictions during February and March.

In response to these changes, Fernando Rodríguez, chief financial officer and interim CEO at Discover Puerto Rico, the island’s destination marketing organization, expressed optimism in a recent industry update, stating, “The year got off to a good start in Puerto Rico, and we are confident that if we continue working together, we can continue reaping the benefits during these times of great change and challenges.”

“Our industry is experiencing a moment of great strength, and at Discover Puerto Rico, we are prepared to continue unleashing the demand and popularity of our destination,” he said.

Looking ahead, the short-term rental sector appears poised for further growth. Although hotels saw a minor decrease in occupancy rates from May to July, there was a significant rebound in August and September, with year-over-year growth rates of 44% and 29%, respectively.

Laressa Morales, director of research and analysis at Discover Puerto Rico, noted the dynamics of hotel bookings: “We see hotel bookings for June and July down 7% and 4% compared to last year, respectively. This decline can largely be attributed to the impacts of international political and economic uncertainty on group and business travel segments. However, we anticipate a positive trend moving forward, especially for August and September, with booking rates exceeding those of last year due in part to the concert series that has been integrated into Puerto Rico’s tourism offerings.”

Airbnb: Aguadilla, Carolina & Río Grande are island’s most hospitable destinations

Separately, the municipalities of Aguadilla, Carolina and Río Grande stood out as the most hospitable destinations in Puerto Rico in 2024, according to an Airbnb report released this week. Five-star guest ratings placed those destinations at the top of the list.

In Aguadilla, the community of hosts under 30 grew by nearly 70% over the past year, highlighting youthful hospitality and natural attractions such as Crash Boat Beach and tours of the island’s western region.

Carolina, with nearly 15% growth in hosts, stands out for its participation of older adults, who represent more than 20% of its host community. The Isla Verde area offers easy access to beaches, culinary and cultural experiences, and historical monuments.

In Río Grande, more than 50% of the hosts who share their spaces through the platform are women. The northeastern coastal destination is known for the El Yunque National Forest and its waterfalls, ideal for hiking and ecotourism.

In addition, Airbnb recognized Irma, from Isabela, as the island’s most hospitable host.