Remote Stay Preference By Vacationers Drive Airbnb's Valuations: Report

Airbnb Inc’s ABNB supply has more than doubled over the past four years, exceeding some of the traditional hotel chains in aggregate, Reuters reports based on AirDNA.

• The pandemic induced higher demand for short-term rentals with larger living space, and their remote location drove Airbnb’s performance compared to the traditional lodging industry. Airbnb’s global active listings rose 2.5% year-over-over in February 2021.
• The company noted over 5.4 million global active listings with higher rent availability compared to the aggregate 3.3 million units at hotel chains including, Marriott International Inc MAR, Hilton Worldwide Holdings Inc HLT, and InterContinental Hotels Group PLC IHG.
• Airbnb had 2.3 million units in 2017 beginning.
• The uptick in local travel and cost-cutting strategy spurred the company’s valuation compared to Marriott, Hilton, and Hyatt Hotels Corp H amid the havoc wreaked by the pandemic on the travel industry. Airbnb also recorded a far less severe revenue decline than Expedia Group Inc EXPE and Booking Holdings Inc BKNG.
• Price action: ABNB share prices traded higher by 0.22% at $176.55 on the last check Friday.