Last updated: 12:24 PM ET, Fri June 17 2016

Airbnb Secures $1 Billion Debt Facility from US Banks

Hotel & Resort | Patrick Clarke | June 17, 2016

Airbnb Secures $1 Billion Debt Facility from US Banks

Photo courtesy of Airbnb.

Despite ongoing discrimination issues, Airbnb received some good news this week.

Bloomberg reported the San Francisco-based home-sharing company secured a $1 billion debt facility from a handful of major U.S. banks that will allow it to move forward with its expansion plans that may include some new services.

Citing a source close to the situation, Bloomberg reported JPMorgan, Citigroup Inc, Morgan Stanley and Bank of America Corp led the deal. 

In addition to funding its current television ad campaign, Airbnb will most likely look to invest in add-on travel services in the near future.

READ MORE: Airbnb to Begin Collecting Hotel Occupancy Tax for Pennsylvania Hosts

According to Bloomberg, recent trial tests have gone well and include meals crafted by personal chefs, dining reservations, art gallery tours, and even bicycle rentals.

Making additional services available to users would obviously be huge for Airbnb as it would open up new revenue streams for the company.

Although Airbnb expects to achieve profitability later this year, Bloomberg reported the company is on a solid track, losing just $250 million since it started eight years ago and generating approximately $1 billion in revenue in 2015.

The company was last valued at $25.5 billion.


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