Airbnb’s Big Investment and What it Means

In recent news within the travel and hospitality industry, Airbnb announced a $160 million investment in the San Francisco startup, Lyric. The home-sharing platform was recently backed by several major players in the real estate industry, with Airbnb as the lead investor.

Launching in 2014, Lyric caters its “creative suites” to business travelers looking for accommodations between 2 and 200 days on Airbnb and other online hospitality marketplaces. Their business model is based on leasing out a full floor of an apartment building, filling each unit with photo-worthy details and furnishings, and then renting them out as hotel rooms. The company brings in revenue from the difference they charge the guest and what it is charged for rent.

Lyric represents itself as joining the professional management of a hotel with the feel of staying at someone’s home. Meanwhile, Airbnb continues to focus on expanding its online presence in the travel industry and growing its customer reach with other acquisitions, such as their purchase of the last-minute hotel room app, HotelTonight.

Stay up to date with industry news and happenings by signing up for our blogs and monthly newsletter.