Hotel giants change tact on home sharing

Big hoteliers are investing in rivals to tackle Airbnb’s exponential growth and effectively changing tact after claiming home-sharing sites were not a competitive threat.

Hyatt Hotels has been revealed to be amongst other investors to join a US$40 million fundraising for OneFineStay, a UK-based competitor to Airbnb.

The OneFineStay site, launched in 2010, offers home sharing in upmarket high-end locations, and ceo Greg Marsh confirmed it will use the proceeds from its latest funding to expand its international presence at a “very deliberate” expansion pace, skift and WSJ reports.

In a bid to differentiate from Airbnb, OneFineStay offers everything from reservations, payments to even on-site guest requests and provides luxury amenities for guests.

OneFineStay also confirmed yesterday it hired former InterContinental Hotels Group (IHG) cfo, Tom Singer, to head up the company’s financial operations.

Meanwhile, Wyndham Hotels has also bought into the home sharing scene, spending reportedly £7.5m in London-based start-up LoveHomeSwap, according to the WSJ.

Earlier this year, Accor chief executive Sébastien Bazin told conference goers it was a “mistake” not to already have a stake in Airbnb, saying, “we are not competitors,” according to the WSJ.

“What can we do together? Most likely many things,” Bazin said while on a panel that included Airbnb executives, WSJ reports.

While Airbnb does not have any formal partnerships or contracts with hotel groups, it does not prohibit them from listing rooms on the website.

The recent investments are said to have signalled a move for the hotel industry at large, which consistently in the past argued that bookings remain steady despite the rise in popularity among home sharing sites.

While initially focussed on nabbing leisure travellers away from traditional hotel rooms, Airbnb are also making a play for corporate guests after signing a partnership with Concur to allow Airbnb receipts to appear on company expense forms. Around 10% of Airbnb business comes from corporate guests.

Yesterday, it was revealed Airbnb could be worth more than US$25 billion, tipping its value to more than major hotel giants such as Starwood and Marriott. It currently offers some 1.5 million homes on its site in more than 190 countries, effectively providing more rooms than some major global accommodation chains.

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