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Airbnb grants second $ 1 billion loan as bookings plummet

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Airbnb Inc. received a second cash injection with a $ 1 billion loan from institutional investors, the company ad Wednesday (April 14).

The San Francisco-based online accommodation marketplace said the funding would allow it to continue investing in the company and its hosts and guests in more than 220 countries amid the coronavirus pandemic.

Airbnb did not provide details on the terms of the deal and who provided the funding. The company did not immediately respond to a request for additional information.

The Wall Street Journal reported that a source close to the deal said the five-year loan carries an interest rate of 7.5%.

“I deeply appreciate the trust so many people have shown in our company even as all travel industries weather the pandemic storm,” Brian Chesky, CEO and co-founder of Airbnb, said in a statement. “We know that travel will come back… All of the steps we have taken over the past few weeks ensure that Airbnb emerges even stronger from the pandemic storm, however long the storm lasts.”

The latest funding comes as Airbnb bookings in San Francisco, New York and Seattle fell more than 50% from the week starting Jan.5, according to a report by CityLab.Com last week. During the same period, bookings fell more than 35% in Washington, DC and Chicago, the survey found.

Last week, Airbnb announced two California investors, Silver Lake and Sixth Street Partners, invested $ 1 billion in a combination of debt and equity. The new resources, they said, will support Airbnb’s ongoing work to invest for the long term in its community of hosts who share their homes and experiences, as well as work to serve all stakeholders in the Airbnb community. .

Earlier this month, Airbnb customers were request refunds. Guests told CNBC that instead of cash refunds, they were given travel credits and could only get a refund if they could document cancellations resulting from travel restrictions or other acceptable cancellation requirements. .

In response, an Airbnb spokesperson said it had implemented its “extenuating circumstances” policy to offer customers a full refund or credit.

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