Airbnb seeks $1 billion cash injection from investors

Airbnb seeks $1 billion cash injection from investors

Airbnb is attempting to secure a $1 billion cash injection that would value it more than the largest hotel and hospitality groups in the UK.

The home-sharing firm would be worth $24 billion (£15 billion) should investors contribute the full amount, according to The Wall Street Journal.

This would dwarf Premier Inn owner Whitbread, which is valued at £9.2 billion, InterContinental Hotels Group (£6.3 billion) and TUI Group (£6.8 billion), The Times reported.

It would also make Airbnb the third most valuable start-up company in the world, ahead of Snapchat, which recently raised $1.2 billion, at a valuation of $16 billion.

Only taxi-sharing service Uber and Xiaomi, the Chinese smartphone maker, are worth more.

The company had told investors that it expects to make more than $900 million in revenue this year. It raised its forecast after a better-than-expected first quarter, a source told the newspaper,

Airbnb’s revenue is expected to reach $10 billion and its earnings, before interest, tax, depreciation and amortisation, $3 billion by 2020.

Airbnb, which employs more than 1,500 people and lists 1.4 million properties worldwide, charges guests a service fee of up to 12% and hosts 3%.

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