Airbnb to launch branded apartments
The hotel industry’s disruptor in chief is again blurring the lines between traditional hospitality business and the sharing economy.
Airbnb is now trying out a new business model to launch its first branded, purpose-built apartments.
Airbnb has partnered with developer Newgard Development Group for a 300-unit rental complex in Kissimmee, near Orlando.
It will be owned by Newgard but branded as ‘Niido powered by Airbnb’.
Newgard CEO Harvey Hernandez said it plans to build up to 2,000 Airbnb-branded units over the next two years.
“This is only the beginning. ‘‰We want to take home-sharing to everywhere in the US that we can.”
The concept is a mix of conventional apartment housing and a serviced apartment model.
Tenants who rent the apartments may list them through Airbnb for short term stays of up to 180 days a year.
“This is something that philosophically matches with our long-term strategy,” said Jaja Jackson, head of multi-family housing projects at Airbnb.
The Kissimmee project is slated to open next year and will feature keyless doors and secure storage so tenants can safeguard any belongings if they are away and wish to rent out their apartment.
The complex will also have a full-time ‘master host’ on site for Airbnb related operations and all apartments will have a mandatory cleaning service, just like conventional serviced apartments.
“The demographic that we are targeting are travelling more than ever before. So when that property is empty, they can be making money with it,” Hernandez added.
Newgard will pocket 25% of the rate charged by tenants for stays while Airbnb takes its usual 3% cut.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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