Airbnb has secured a US$1 billion investment from private equity firms Silver Lake and Sixth Street Partners to help the home-sharing giant to fight the economic fallout from the coronavirus pandemic.
The company said that it will primarily use the funds, which will be a combination of debt and equity, to attract more hosts so as to strengthen the company’s position for when travel rebounds. Airbnb also plans to invest in its business for longer-term stays.
Its CEO and co-founder Brian Chesky said that as travel recovers, people will be keen in visiting locations close to home and seeking out local, authentic experiences. As such, he said the future of Airbnb will focus on three core products: hosts, long-term stays and Airbnb Experiences.
Airbnb also said that it will contribute US$5 million from the US$1 billion investment to its Superhost Relief Fund, which helps hosts in need of financial assistance.
Silver Lake co-CEO and managing partner, Egon Durban, said in a statement: “While the current environment is clearly a difficult one for the hospitality industry, the desire to travel and have authentic experiences is fundamental and enduring.
“Airbnb’s diverse, global, and resilient business model is particularly well suited to prosper as the world inevitably recovers and we all get back out to experience it.”