Airbnb announces anticipated blockbuster end of year IPO, likely to see significant needed cash flow following major layoffs after onset of virus

Vacation rental resiliency has increased compared to hotel counterparts as purpose for travel has shifted.

September 14, 2020
Source: JLL Research, Forbes, AirDNA and STR

  • Airbnb saw a significant drop off in bookings directly following shutdowns but have since seen a comeback in recent months as restrictions loosen and consumers look to get out of their homes safely.

  • Wall Street analysts are anticipating Airbnb to enter with a valuation just under $30 billion. The company is currently valued at $26 billion, after dropping their internal valuation 16 percent directly following the onset of the virus.

  • Alternative accommodations, short-term rentals, are now the mainstream as travel in 2020 is not centered around business and group travel but rather focused on short term getaways and “staycations”.

  • While the accommodations industry is severely impacted by shutdowns, hotels are affected considerably more than short term rentals. In San Francisco in March, hotel occupancy was 77 percent below 2019 levels at their lowest point, this compares to short term rentals being off by 39 percent.

  • The significant influx of cash from an IPO is anticipated to help Airbnb continue to grow their roughly 20 percent market share, especially given the stalling of their hotel competitors during COVID-19.

  • Including their headquarters, Airbnb occupies roughly 1.1 million square feet of office space in the Bay Area, 70 percent of which is in San Francisco.