Airbnb Inc. has bagged another cash injection to see it through the travel industry’s worst crisis.
It sealed a $1 billion loan with a five-year repayment, The Wall St Journal reports.
A week ago it secured another $1 billion after a deal with investors Silver Lake and Sixth Street Partners.
The Covid-19 pandemic affecting all levels of the travel industry has led a big decline to Airbnb’s value, down from an internal valuation of $31 billion in 2017 to effectively $18 billion based on the terms of the latest loan.
Bookings in major markets like San Francisco and Seattle have declined 50% based on recent data and the company is spending big to offer full refunds to customers and compensating hosts as part of a new ‘Extenuating Circumstances’ policy.
"I deeply appreciate the confidence and trust that so many have shown in our company even as every sector in travel is going through the storm of the pandemic. All of the actions we have taken over the last several weeks assure that Airbnb will emerge from the storm of the pandemic even stronger," said Brian Chesky, Airbnb’s CEO and co-founder.
Airbnb had planned to go public later this year but that is looking increasingly unlikely in the current business climate.
