Airbnb in "Late Stages" of Acquiring High-End Rental Platform Luxury Retreats
Update 2/16/17: Airbnb closed on its purchase of Luxury Retreats today for around $300 million.
For a company that caters to travelers looking for low-cost alternatives to hotels, it may seem odd that Airbnb is now reportedly acquiring Luxury Retreats, which offers stays at high-end homes. The deal, as originally reported by Bloomberg, is said to be priced at less that $300 million.
Luxury Retreats' portfolio consists of more than 3,000 luxury villas in more than 90 destinations. These villas are handpicked and inspected by the company to ensure that they provide upscale experiences. Homes available for rent include Richard Branson's Necker Island (ranging from $4,280-$80,000 per night) and a 22-bedroom estate in Anguilla (ranging from $16,100-$45,000 per night), among others.
While the two companies might not seem like a fit for each other, the Luxury Retreats business model and portfolio actually fits into the business plan for Airbnb by diversifying the customer base. According to Tech Crunch, a source noted that Airbnb "is deeply interested in the company because of their extremely talented team with deep experience in the luxury segment."
As of now, the deal has still yet to be confirmed by either Airbnb or Luxury Retreats. But sources close to the matter say that the agreement is in the late stages. Once the deal is closed, the complete offering from Airbnb and Luxury Retreats will reach a much larger audience than either one of them previously enjoyed, ahead of a potential public listing by Airbnb — for which no date has been set.