Hotel challenger Airbnb to be valued at $13bn

Airbnb, the lodgings rental website seen by many as a major challenger to the hotel industry, could see its valuation soar to around US $13 billion if it goes ahead with plans for an employee stock sale.

According to The Wall Street Journal, the company is arranging for investors to buy US $50 million worth of shares, allowing some employees to cash in on their stakes.

The valuation could yet change and Airbnb is refusing to comment on the developments.

As a number of media outlets have noted, the valuation would put it well ahead of major hotel chains such as Hyatt Hotels Corporation (US $9.37 billion) and Wyndham Worldwide (US $9.55 billion).

Airbnb claims to list more than 80,000 room and properties in 34,000 cities around the world, and also says it has provided accommodation for more than 20 million guests.

The company's revenues come from a guest service fee of between 6-12% added to guest payments every time a reservation is booked.