Airbnb has secured a $200 million investment that will fuel the rollout of its very own branded apartment buildings across the U.S.
According to The Mercury News, the home-sharing platform has partnered with Miami-based Newgard Development Group to launch Niido Powered by Airbnb, apartments specifically designed for short-term rentals.
Real estate investor Brookfield Property Partners will contribute at least $200 million to the venture, including a $20 million investment in a 324-unit building currently under construction in Kissimmee, Florida.
The Kissimmee property along with three additional buildings are scheduled to open later this year.
Airbnb said Niido will initially target the Southeast U.S. "This is going to be part of the future of housing, not only in Florida but also across the country," Airbnb's global head of policy and public affairs, Chris Lehane said during a conference call last month.
Tenants who move into the buildings will be permitted to rent out individual rooms or their entire home for as many as 180 days per year. However, their landlord will receive a portion of the revenue.
The buildings will be designed with both hosts and guests in mind. Features will include keyless entry, shared common spaces and an on-site "MasterHost" who can assist with check-in and cleaning.
Niido tenants will also benefit from an Airbnb-integrated app allowing them to manage guest stays from anywhere.
"The Niido model will provide additional income to landlords and tenants while enhancing the experience for Airbnb guests," Newgard CEO, Harvey Hernandez said in a statement last year. "Niido eliminates barriers by encouraging home sharing and creating solutions that work for everyone."
Airbnb's latest partnership could signal a dramatic shift in its relationship with the housing industry. However, the company's continued expansion is likely to only perpetuate its ongoing battle with the hotel industry, which has repeatedly argued that illegal hotels are behind a majority of Airbnb's revenue.
In addition to Niido, Airbnb currently boasts 13,000 units eligible for short-term rentals as part of its "Airbnb Friendly Buildings" initiative.
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