Airbnb Just Secured a $1 Billion Investment

Airbnb, an online marketplace for arranging or offering lodging, primarily homestays, or tourism experiences, announced on Monday that private equity firms Silver Lake and Sixth Street Partners will invest $1 billion into the company.

The investment was a combination of debt and equity and raises the U.S. home rental company’s cash reserves to roughly $4 billion.

Airbnb said it would use the funds primarily to attract more hosts, or homeowners who list their properties for rent on the company’s platform.

“While the current environment is clearly a difficult one for the hospitality industry, the desire to travel and have authentic experiences is fundamental and enduring. Airbnb’s diverse, global, and resilient business model is particularly well suited to prosper as the world inevitably recovers and we all get back out to experience it,” Silver Lake Co-CEO and Managing Partner Egon Durban stated.

Financial details of the deal were not disclosed.

According to a Reuters report, Airbnb lowered its internal valuation by 16% to $26 billion last March.