Airbnb Inc. today said it has raised $1 billion in new funding in a combination of debt and equity to help the accommodation booking provider weather the COVID-19 storm.

The funding came from Silver Lake and Sixth Street Partners and will be formally used to support Airbnb’s investment over the long term in its community of hosts as well as to serve “all stakeholders” across the company’s community. According to CNBC, the round was raised on a valuation of $26 billion, down from a valuation of $31 billion when Airbnb raised money in 2017.

“The desire to connect and travel is an enduring human truth that’s only been reinforced during our time apart,” Airbnb co-founder and Chief Executive Officer Brian Chesky said in a statement. “But the way this manifests will evolve as the world changes. We’ll see a new flexibility in how people live and work, which means they won’t have to be tethered to one location.”

While once again recommitting to support its hosts, Chesky also noted that the company would also focus on long-term stays such as for students needing housing during school or people on extended work assignments. The announcement is a shift for the company. Airbnb has always offered the ability to book long-term stays but the core of Airbnb’s service has always been short-term stays particularly for those on holiday.

Long-term stays would, in theory, provide more regular income for hosts and Airbnb itself. How Airbnb implements this is another question. Long-term stays outside Airbnb in much of the world include discounts over daily bookings but Airbnb has not always had support for such discounts. Put more simply, it is usually cheaper to make long-term bookings outside Airbnb’s system.

Chesky also noted that the company would continue to develop its Airbnb Experiences service. The service offers “unique activities led by hosts from around the world who generously share their passions.”

Many companies have been hard hit by the coronavirus pandemic with Airbnb being one of them. With travel disappearing as states and countries close their borders and flights cease operation, Airbnb has taken a huge hit.

Including the new funding, Airbnb has raised $5.4 billion to date. It had been planning to go public with an initial public offering later this year, but those plans may be put on hold until next year given the current COVID-19 crisis.

Photo: Pixabay