The rise of sharing economy, made possible by technological evolution, has changed the way people make use of underutilized goods and has also changed the competition dynamics between incumbents and new players of many sectors. One sector that has been more revolutionized by the sharing economy is the tourism industry, given the rise of many new intermediaries and new players. Among them, Airbnb, an online marketplace that enable people to list, find and book rooms around the world, has very quickly changed the rule of competition of the hospitality industry. Given the strong position in the tourism sector, Airbnb has become a new competitor of hotels, that need to understand how to react and to compete against it. Previous research has already analysed some perspectives of AirBnB rise phenomenon, but the results vary a lot depending on the context and they are still far to be somehow conclusive regarding the systematic description of sector behaviour. Thus, given the previous outcomes on the possible disruptive effect of Airbnb on the hotel industry have not reached a final and unique conclusion, and given the importance for hotels to constantly update their strategic choices, the present study has the aim of replying to the following two research questions: “Does Airbnb impact negatively the hotel economic performance?” and “What are the key moderators among hotel’s online and offline positioning strategies, capabilities, and characteristics of the Airbnb’s local supply?”. Overall, the present study contributes to the emerging literature debate on the economic impacts of sharing economy on the incumbent hotel industry across an even broader variety of consumer markets. From a managerial point of view, this study informs hotels that they are no longer just competing with other hotels in their markets. They are also competing with Airbnb, and other home-sharing services, in their neighbourhood. A way to succeed, as demonstrated by this study, is to develop the appropriate capabilities to defend their economic performance and to look closely at why Airbnb is succeeding, to fight back and protect their investment.