Airbnb Raises Another $1B As Travel Industry Flounders
Short-term rental giant Airbnb has raised $1B more in debt as the travel industry continues reeling from an ongoing demand shock.
"We know travel will return and rather than merely hunkering down, the support we have received will allow Airbnb to continue moving forward as we invest in our community,” CEO Brian Chesky said in a statement.
Airbnb didn't specify the terms of the loan or respond to a request for comment.
The deal comes as traditional hotels and short-term rentals alike adjust to the coronavirus pandemic's devastation to the travel industry. RevPar at U.S. hotels during the week ending April 4 shrunk 81.6% year-over-year, according to STR.
Traditional hotel giants like Marriott have laid off or furloughed thousands of employees, while Airbnb competitors like Sonder have laid off huge chunks of their workforce. Airbnb itself decided to freeze marketing spending and most of its hiring efforts, The Information reported last month.
Airbnb had planned to go public this year, but that offering is now less likely, equity analysts told Bisnow earlier this month. Airbnb's deal last week reportedly valued it at $18B, a steep markdown from when a fundraising round two years ago valued it at $31B.
“All of the actions we have taken over the last several weeks assure that Airbnb will emerge from the storm of the pandemic even stronger, regardless of how long the storm lasts," Chesky said.