The Wall Street Journal reported that hospitality exchange network Airbnb is in advanced talks to raise more than US$10 billion in funds, according to several people familiar with the process.
If Airbnb, San Francisco, did receive that funding, reportedly the bulk of which may come from TPG Capital, it would have a higher market value than Wyndham Worldwide, Parsippany, New Jersey, at US$9.4 billion and Hyatt Hotels Corp., Chicago, at US$8.4 billion.
Although hotel companies have told HOTELS that Airbnb as an outlier in terms of competition with their business, a research paper from Boston University’s School of Management found that a 1% increase in Airbnb listings results in a 0.05% decrease in that market’s quarterly hotel revenues.