Wednesday, 23 April 2014

Airbnb books $450 million financing round for development, fight with hospitality sector

Airbnb Inc., the quickly developing web lodging listings website, has become the target of legislation which may see its services restricted to its home town only. According to a Wall Street Journal report on Friday, it has closed on a round of financing amounting to $450 million from TPG, T. Rowe Price Group Inc., Sequoia Capital and Dragoneer Investment Group.

The round evaluates Airbnb, headquartered in San Francisco, whose website lets individuals lease their homes, flats or rooms to guests, at around $10 billion. The organization has raised $826 million, as stated by the Journal.

In six years, Airbnb has expanded to listings in 34,000 urban areas and 192 nations.

In the meantime, the organization, headed by CEO Brian Chesky, has experienced harsh criticism in San Francisco in light of the fact that the city's authoritative code forbids short-term leasing in private loft structures with four units or over. Likewise, the San Francisco planning code forbids utilizing living arrangements for business purposes without special licenses.

David Chiu, the President of the San Francisco Board of Supervisors, presented an enactment earlier this month which focused on managing short-term flat rentals, which regularly offer rates comparable to or less expensive than neighborhood inns. The bill introduced by Chiu would legalize transient rentals on a limited basis. However, it would extend regulations to encompass apartment structures with as little as two units.

According to the Journal, Airbnb needs the cash to make global expansions and include more services for travelers and provide them with damage covers from burglaries and vandalism as also combat the hospitality sector and its regulators.

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