In recent years, sharing economy has been recognized as a new business platform in peer-to-peer accommodation market worldwide. Airbnb is one of the leading sharing economy platform that offers sharing accommodation. There are 308,207 hotel rooms and more than 53,000 of Airbnb listings in Malaysia in year 2019. Both hotel and Airbnb platform are competing between each other in getting guests to use their lodging service and the competition between Airbnb and hotel is getting more intense since the number of both accommodation are increasing from day to day. Therefore, both the Airbnb hosts and hotel operators should know the factors that will influence guests’ decisions making in renting an accommodation in order to increase their competitiveness. The objective of this paper is to identify the factors that will affect guests’ decision making in renting an accommodation between peer-to-peer accommodation and hotel. Besides, it is also to analyse the priority of guests’ preferences in renting an accommodation. A questionnaire survey is conducted through online to identify the perceptions of respondents on the factors that will influence their decision making in renting an accommodation. Frequency analysis and relative importance index are used in this study to analyse the data obtained from the questionnaire survey. As a result, cleanliness and hygiene of accommodation appeared to be the most significant factor which will affect guests’ decision making in renting an accommodation between Airbnb and hotel among the other factors with highest relative importance index value of 0.928. This is followed by safety of security of accommodation, price, service quality, functional attributes and amenities of accommodation, location, friendliness and responsiveness of host and staff and lastly the least significant factor which is reputation of hotel brand and host profile with lowest relative importance index value of 0.778. In a nutshell, the findings of this study will beneficial to the hotel operators and Airbnb hosts in improving the competitiveness and attractiveness of their accommodations.