Airbnb has increased its proposed valuation to as much as $42bn (£31bn) ahead of its initial public offering this week.
Airbnb yesterday said that it will price shares at between $56 (£41) and $60 (£44), up from a previous forecast of $44 (£32) to $50 (£37) just a week ago, ahead of a listing on the Nasdaq stock market in New York, which is set to take place on Thursday.
The new price would let the company raise up to $3.4bn (£2.5bn) in the offering, with a valuation of $42bn at the upper end of the range, which is more than double the $18bn (£13.3bn) the company was valued at during a private fundraising round in the spring.
Airbnb, which has more than 7 million listings on its platform worldwide, has been adversely affected by the coronavirus pandemic. But as the Covid-19 vaccines are rolled out, demand for short-lets is expected to rebound to pre-pandemic levels in the short- to medium-term.
Peter Garnry, head of equity strategy at Saxo Bank, told the press: “The key risk factors for Airbnb are the long-term impact on travelling from the Covid-19 pandemic and whether it has changed people’s habits.”
I would think the main risk for AirBnB is that it’s business model is fundamentally based on FRAUD. Name me for example one AirBnB listing that isn’t fraud in London. For a listing NOT to be fraudulent this is what is required. Lender permission Insurer permission Council permission Freeholder permission Leaseholder permission LL permission If every listing was required where relevant to provide this information to AirBnB there would be precious few London listings!! How AirBnB have got away with this fraud for so long beats me. The regulatory regime just isn’t up to preventing this fraud. Licensing would probably achieve what is required. Very few licences would ever be issued if from all of the above affirmative answers were required that AirBnB letting was OK. Short-term letters can’t get away with considering these occupants as lodgers because they would have to pass Right to Rent regulations which few tourists could pass. Lodger LL masquerading as such when they are engaged in short-term letting of days could come unstuck with RTR if they are ever caught. 5 years in prison I believe is the maximum sentence. Something for those gaming the system to think about!!
There is also tax fraud to consider in that many are using the Room for Rent Allowance which is meant for LODGERS not short-term letters.
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It would also help if they only allowed owners of properties to rent them out on their site and end this dreadful let-to-let business that is generally run by low life scammers.
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There is also the not inconsiderable effects on the normal hospitality industry like hotels and B & B.
These businesses are set up with all the costs of compliance with relevant regulations.
That is why they have their price points.
The AirBnB mass fraud is putting many of these legitimate businesses OUT of business.
This situation compounded even more by the CV19 crisis.
It is outrageous that Govt is effectively facilitating FRAUD to cause legitimate hospitality operators to be put out of business.
As these legitimate businesses close there will be less tax take from them as they won’t EXIST!!
The ‘gig’ economy is largely based on fraud in not complying with relevant conditions.
Nobody seems to be recognising the devastation this is causing traditional hospitality accommodation services.
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