Airbnb borrows $1B for expansion

JPMorgan, Citigroup, Bank of America and other banks participated

Jun.June 17, 2016 01:00 PM

From the New York website: Airbnb, the $25.5 billion short-term rental colossus, just raised $1 billion in debt to fuel an expansion.

JPMorgan Chase, Citigroup, Bank of America, Morgan Stanley and other banks all participated in the deal.

Similar large debt deals have in the past been preludes to initial public offerings, as with Facebook, which borrowed about $8 billion from a group of banks in 2012, some of which participated in its subsequent IPO.

The money loan to Airbnb will go towards a global growth push as well as forays into non-room-rental business lines such as travel services, Bloomberg reported.

Here in New York, a bill seeking stringent regulations on the service sponsored by Assembly member Linda Rosenthal is moving through committee. If enacted, the bill would whole units listings on the site for terms of less than 30 days. Such rentals are currently illegal under the state’s Multiple Dwelling Law, but make up a sizable chunk of Airbnb listings in the city.

Airbnb is mobilizing to oppose the bill, with several members of one of the service’s “Home Sharing Clubs” demonstrating this week in front of Rosenthal’s Upper West Side office. [Bloomberg]Ariel Stulberg

Related Articles


LA’s Airbnb hosts seek carveout for looming ban on renting out secondary homes

HomeAway CEO Brian Sharples and Airbnb CEO Brian Chesky say they need a delay (Credit: Getty Images)

Airbnb to LA: Please don’t start enforcing new law on Nov. 1

Californians want more pot shops, Airbnb asks LA to delay short-term rental ordinance: Daily digest

Airbnb CEO Brian Chesky

Airbnb — yes Airbnb — says it wants to fix California’s affordable housing crisis

Glendale Mayor Ara Najarian and City Hall

No more “party house” in Glendale if new Airbnb law passes

Airbnb's Brian Chesky and Mike Bonin, LA city councilman for Venice

LA’s new Airbnb rules may price out some short-term renters in beach towns

Guesty, the short-term rental management platform, raises $35M

Federal appeals court sides with Santa Monica over Airbnb, in blow to home-sharing