The Wall Street Journal and Financial Times reports that Airbnb, which is headquartered in San Francisco, has recent secured .5 billion in funding. This new round of capitalization places the value of the company at 5.5 billion.
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“This makes their valuation larger than Marriot’s which is around 21 billion. That is awesome for them, but also seems extreme. AirBnb has somewhere around 600k “properties” and Marriot has around 4,000. However, if you consider the number of rooms in a Marriot property the amount of revenue generating units is probably similar and likely higher. Estimates are at 700k+ units for Marriot.
Excluding “but its on the internet” and sharing economy hype these comparable valuations seem odd to me because Marriot owns these buildings. If you are next to an attraction then no one can build a 200 unit hotel next to you tomorrow. AirBnb has major market presence, but a competitor can come along and pick up their more valuable locations with just normal business practices. The AirBnb barrier to entry is being their first, not structural (which I’m not fully discounting, it is just less concrete).
What else is driving this valuation then? Being their first, technology stack, legal?” ~[Tiquortoo](http://www.reddit.com/user/Tiquortoo)[READ FORBES](http://fortune.com/2015/06/27/airbnb-raises-1-5-billion/)