OCEAN CITY, Md. – Once the go-to option for beachgoers, hotel stays in Ocean City are now facing stiff competition from short-term rentals, as more vacationers opt for spacious, home-like accommodations.
Realtor John Magathan says he’s seen a growing number of families turn to short-term rentals over traditional hotels. “Have a family, you want more space,” Magathan said. “Especially if you start to get teenage kids, they’re not willing to sleep on the same hotel bed. You’ve got to have separate rooms for them. And I think the ability to cook meals is a factor.”
According to the latest Ocean City tourism report, hotel occupancy dropped by 4% in February compared to the same month last year, while short-term rentals saw a 6% increase — a trend Magathan says is unusual for the winter months, when most visitors only stay for a day or two.
Keith Whisenant, who works at the Residence Inn in Ocean City, attributes the dip in hotel guests to extreme weather. “We had two storms that we hadn’t seen in about a decade,” Whisenant said. “So that had a lot to do with it.”
Magathan also believes the town’s recent short-term rental regulations may be intended to level the playing field for hotels. “Possibly the city council has moved in this direction to help out the competition from short-term rentals and give a little bit more of that business to the hotel,” he said.
However, town officials maintain the regulations—impacting only about 350 of the nearly 9,000 short-term rentals in Ocean City—are aimed at preserving neighborhood quality of life, not boosting hotel traffic.
Whether guests continue to shift toward platforms like Airbnb or return to booking beachfront hotels remains to be seen, but one thing is clear: vacation trends in Ocean City are changing with the tide.