Airbnb may be worth more than the biggest hotel giants, according to new research.
A new report from Morningstar Equity Research, “Airbnb’s Network Effects Offers Investors a Unique Stay” has determined that the homesharing giant may have a market cap ranging anywhere from $53 billion to $65 billion, as per Skift.
This would put Airbnb’s market valuation WELL above Marriott International, the world’s biggest hotel company, with its own market cap at about $46 billion.
It also points to some pretty significant growth, with its last funding round sitting at $31 billion in 2017, according to senior equity analyst for Morningstar and co-author of the report, Dan Wasiolek.
Skift reports that these findings place Airbnb on par with some of the big players in the world of OTAs.
While it has well overtaken Expedia’s market cap of $19 billion and TripAdvisor’s $8 billion, it still has some catching up to do if it wants to compete with Booking.com, which is sitting pretty on a valuation of about $100 billion.
“That [Airbnb market capitalization] will continue to go up as it has been because Airbnb does have the No. 1 share in the core alternative accommodations market, and we think they are going to continue to have initiatives there to expand their presence in that market, and also go into new verticals to expand their network,” Wasiolek told Skift.
However, this victory may be short-lived.
“As people become aware that Booking has just as many alternative accommodations listings as Airbnb, we think Booking will begin to outpace Airbnb growth in this market in 2020,” Wasiolek added.