A partnership between Airbnb and apartment developer Niido is preparing to open the first apartment complex specifically designed for tenants who want to sublease their units to short-term guests.
The partnership, backed by up to $200 million in equity financing from real estate giant Brookfield Property Partners, signals Airbnb’s most significant collaboration yet with the housing industry.
The move is further fueling opposition from the hotel industry, which accuses Airbnb of facilitating illegal hotels.
Airbnb’s partnership with Niido, called Niido Powered by Airbnb, will make its debut in early 2018 with the opening of a 324-unit apartment complex in Kissimmee, Fla., near Orlando. On a conference call on Dec. 18, Airbnb and Niido executives said that the partnership plans to open three more apartment complexes by the end of the year.
Chris Lehane, Airbnb’s head of global policy and communications, remarked on the call that, in the past, “the housing industry was keeping its distance. Now, industry leaders are lined up to knock on the door as a potential partner.”
Niido CEO and co-founder Harvey Hernandez added, “We believe the combination is very powerful and look forward to building communities to enhance how people live, share and travel.”
Hernandez declined to say where the other three complexes will be located.
Under the Airbnb/Niido initiative, tenants would enter into one-year leases and would be able to rent their units out for as many as 180 days a year. Under a revenue-sharing agreement with management, tenants receive 75% of the Airbnb-generated revenue and landlords receive 25%, according to Niido chief marketing officer and co-founder Cindy Diffenderfer.
The monthly rents in the Florida complex will range from $1,300 to $2,000 for units ranging from one to three bedrooms. A Niido app will be integrated with Airbnb and will provide booking and management services as well as short-stay amenities such as keyless entry.
