Airbnb, which confidentially filed for an IPO in August, is reportedly looking to raise $3 billion in a December IPO. The company will make its filings public post-election in November, Reuters reported, citing sources who are familiar with Airbnb’s plans.

As Covid-19 decimated the travel industry, Airbnb’s business recovered faster than many had expected. Overall, short term rentals outperformed hotels during this period.

Airbnb has a case for a strong valuation given current travelers preference for vacation rentals over hotels and its strong brand equity.

Airbnb was quick to capitalize on new Covid-19 induced realities. Airbnb CEO Brian Chesky says its short term rentals are aligned with the way people are traveling and living now. Its vacation home rentals offer the right amenities for remote workers and extended stays.

Another huge advantage is its 7+ million global listings – guests have “the ability to choose from what seems like an endless amount of options on Airbnb.” Competitors have a hard time beating Airbnb’s unique and diverse offerings. With over 150 million users, rental properties would be remiss not be on the Airbnb platform.

Airbnb is one of the most anticipated U.S. stock market listings in 2020. The market has been very IPO friendly this year with a number of blockbuster IPOs, such as the recent data warehouse company Snowflake Inc.

Sources expect Airbnb to hit a $30 billion valuation, which is much higher than the $18 billion the company was valued at in April when it raised $2 billion from investors.

photo credit: airbnb

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Categories: Deals News