- Airbnb has announced that Silver Lake and Sixth Street Partners will invest $1 billion into the company in a combination of debt and equity securities
Airbnb has announced that Silver Lake and Sixth Street Partners will invest $1 billion into the company in a combination of debt and equity securities. These new resources will be used to support Airbnb’s ongoing work to invest over the long term in its community of hosts who share their homes and experiences as well as the work for serving all stakeholders in the Airbnb community.
“The desire to explore, connect, have new experiences, and have a comfortable place to call home are universal and enduring. And our commitment to create a greater sense of belonging—for everyone, everywhere—will never change,” said Airbnb Co-Founder & CEO Brian Chesky.
Chesky added: “First off, I want to thank Silver Lake and Sixth Street for their incredible partnership and support. They have a well-earned track record for being insightful thought partners who always have a strong sense of where the world is going.”
Airbnb was started in the midst of the Great Recession in 2008. And Airbnb rapidly grew into a trust two-side marketplace that generates real money for millions of people who share their homes and host Experiences. The people who share their homes keep up to 97% of what they charge for their listings while guests have easier access to a range of places to stay ranging from budget to luxury in nearly every country in the world.
The social distancing aspect of the pandemic proves people have a desire to connect and travel and it manifests how the world is changing. There is flexibility in how people live and work — which means they will not have to be tethered to one location.
With the funding, Airbnb will be investing in hosts and will bring more into the community. And the company will focus on long-term stays ranging from students needing housing during school to people who have extended work assignments.
Silver Lake and Sixth Street Partners funds’ investment will also include $5 million which Airbnb will contribute to its Superhost Relief Fund — which will provide grants worth a combined total of $15 million to Superhosts who rent out their own home and need help paying their rent or mortgage as well as long-tenured Experience hosts trying to make ends meet.
Key Quotes:
“First off, I want to thank Silver Lake and Sixth Street for their incredible partnership and support. They have a well-earned track record for being insightful thought partners who always have a strong sense of where the world is going.”
“The desire to explore, connect, have new experiences, and have a comfortable place to call home are universal and enduring. And our commitment to create a greater sense of belonging—for everyone, everywhere—will never change.”
-Airbnb Co-Founder & CEO Brian Chesky
“Airbnb’s revolutionary platform has transformed how people travel, unlocking one-of-a-kind stays and experiences at scale. This was made possible by Brian, Joe and Nate’s inspired leadership and care for both their guest and host community. 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.”
-Silver Lake Co-CEO and Managing Partner Egon Durban
“Airbnb created an enormous new category, underpinned by the leading brand and technology platform, as well as a community founded on trust. The company’s achievements speak for themselves, and we are excited by the opportunities on the horizon as they continue to grow their geographic footprint, accommodations and experiences. We’re pleased to partner with this unique company as they navigate through this period focused on hosts, guests, employees, communities, and shareholders.”
-Sixth Street Partners CEO and Managing Partner Alan Waxman
