Airbnb is reportedly raising nearly $1 billion at a sky-high $24 billion valuation

Brian Chesky Illustration Airbnb logoMike Nudelman/Business InsiderAirbnb CEO Brian Chesky

Airbnb is close to closing a nearly $US1 billion funding round at a $US24 billion valuation, sources tell The Wall Street Journal’s Rolfe Winkler and Douglas MacMillan.

That’s a heftier valuation than the enormous hotel chain Marriott (worth about $US21 billion), and more than twice the valuation of the travel site Expedia.

Airbnb is earning such a gargantuan valuation with investors in part because of its sunny revenue projections: It sees itself as pulling in $US10 billion in revenue by 2020, with profits of $US3 billion before interest, taxes, depreciation and amortization.

Currently, Airbnb has about a 1% share of the global lodging market, and it would need to increase that share to as much as 10% in only five years, analyst Douglas Quinby tells WSJ.

Right now it expects an operating loss of about $US150 million this year as it pushes to expand its services to new parts of the world and fights regulators over taxes and lodging laws.

The home rental company last raised money in April 2014 at a $US10 billion valuation.

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