Airbnb raising $1 billion to support business throughout coronavirus

Airbnb on Monday stated it’s raising $1 billion to support the business’s long-lasting financial investment in hosts who share their houses and experiences on the platform. The cash will likewise assist “serve all stakeholders in the Airbnb community,” the business stated in a news release. 

Firms Silver Lake and Sixth Street Partners will invest $1 billion in Airbnb in a mix of financial obligation and equity securities, the home-share giant stated. This comes as COVID-19, the illness brought on by the recently recognized coronavirus, has actually damaged a series of markets, consisting of travel. Many cities and nations have actually enforced lockdowns to slow the spread of the illness, and significant occasions have actually been cancelled or held off. The travel market might apparently lose around $24 billion in foreign costs this year as tourist dips. 

Last year, Airbnb stated it was preparing to go public in 2020, though it’s unclear if those strategies still stand amidst the coronavirus pandemic.

Airbnb stated it’ll concentrate on buying and including more hosts into its neighborhood. It’ll likewise concentrate on long-lasting stays, which enable individuals to discover real estate for prolonged durations. Lastly, the business will likewise take a look at continuing to use activities through Airbnb Experiences.  

“The desire to explore, connect, have new experiences, and have a comfortable place to call home are universal and enduring,” Airbnb co-founder and CEO Brian Chesky stated in a declaration. “And our commitment to create a greater sense of belonging — for everyone, everywhere — will never change.”

Airbnb will contribute $5 million from the financial investment to its Superhost Relief Fund, which will provide grants worth an overall of $15 million to Superhosts who lease their houses and require help with paying their lease or home mortgage. The grants will likewise go to long-tenured Experience hosts who require monetary aid. 

Last week, Airbnb stated it would pay hosts $250 million to assist balance out losses from visitor reservation cancellations.  

Now playing:
Watch this:

How to save money on vacation home rental sites

1:21