Airbnb, the house-sharing pioneer long synonymous with offering travelers alternatives to traditional hotels, is now making hotels a cornerstone of its growth strategy. The company’s second-quarter 2025 earnings release and subsequent analyst call delivered both impressive financials and a candid roadmap for transformation, confirming that embracing hotels is no longer taboo for Silicon Valley’s home-sharing unicorn.
Airbnb blew past Wall Street expectations, reporting Q2 revenue of $3.1 billion—up 13% year-over-year—and adjusted earnings of $1.03 per share. Net income reached $642 million, and the company booked 134 million “nights and experiences,” a 7% annual increase. The accelerated demand extended globally, with Latin America and Asia Pacific leading growth, even as North America growth softened.
Investors seemed more attuned to Airbnb’s cautious guidance for the second half of 2025 as execs expect slower revenue and softer margins due to tough year-over-year comparisons and stepped-up investments in technology and regulatory compliance. Chesky called out increased competition from hotels and mounting regulatory pressure on short-term rentals as ongoing headwinds, forecasting Q3 revenue between $4.02 billion and $4.1 billion while confirming heavy investments in new initiatives might compress margins in the near term.
Investors responded by sending Airbnb’s stock down over 6% following the call, with the stock down more than 7% since earnings as of press time.
And about those hotels: Chesky said Airbnb will be competing more directly head-to-head with that segment of the travel sector.
“We’re going to be going significantly more aggressively into hotels,” Chesky said toward the end of the call. He added that Airbnb has spoken with hotels around the world, especially independent, boutique and bed-and-breakfast locations. “We’ve spent a lot of time looking at hotels as a business. We think it’s really compelling, and we think that there’s going to be a lot more to do with hotels on Airbnb.”
Airbnb’s hotel phase
Crucially, Airbnb’s call centered around its expansion “beyond the core”—including hotels. Chesky referred to it as an “and, not a or” strategy: Airbnb will maintain its iconic homes product while ramping up hotel supply, especially internationally where it’s still seeing opportunity for growth. “A huge percent of hotels in Europe are independents,” Chesky said.
Why the shift? Airbnb’s data suggests many travelers browse home listings but don’t always book, citing lack of availability or preference for hotel amenities. By integrating hotels, Airbnb fills network gaps—especially in cities and peak periods, when home options are limited.
The company’s HotelTonight application was offered by Chesky as an example of a successful acquisition. “We’ve historically primarily focused on building organically, but we absolutely are open to acquisitions, and we are going to be looking at it. And I think that we are now in a better place to consider acquisitions now that … we have this new expanded strategy where we’re focused not just on all aspects of traveling, but also living.”
It’s an open debate for some communities on Reddit whether a hotel or an Airbnb is the better choice. One thread, r/TravelHacks, features a discussion of whether there’s even a difference at this point. A commenter wrote the general consensus seemed to be that Airbnbs are better for large groups and hotels for solo trips, albeit dependent on the location. Surely, this is a gap that Chesky and Airbnb would like to see close.
Tech-powered hospitality and lifestyle expansion
Hotels are only part of Airbnb’s ambitious remake. Chesky also described efforts under way to turn Airbnb into what he described as an “AI-first application.” The company is betting on its AI-powered customer service agent to drive efficiency and personalization.
He said this agent, leveraging 13 specialized models trained on tens of thousands of customer interactions, has already managed to reduce the necessity for human intervention by 15%.
Chesky told analysts he believes “AI apps” will quickly become dominant—and Airbnb, as a “non-AI-native application,” needs to transform in that direction.
“We’re starting with customer service. We’re bringing into travel planning,” he said.
Then he described that what could look like.
“It will not only tell you how to cancel your reservation, it will know which reservation you want to cancel,” Chesky said. “It can cancel it for you and it can be agentic, as in it can start to search and help you plan and book your next trip.”
The CEO outlined future plans for deeper AI integration ranging from expanding language support to building toward a platform that can serve as an “everything app” for travel and experiences.
Chesky concluded the call by reinforcing Airbnb’s commitment to innovation and stressing what the company will not become: a commodity. “I don’t think we’re going to be the kind of thing where you just have an agent or operator book your Airbnb for you because we’re not a commodity. But I do think it could potentially be a very interesting lead generation for Airbnb.”
Earlier in the call, Chesky said Airbnb is probably the biggest travel brand in the U.S. and that the company’s current moves are about growing beyond that.
“What we’re trying to do is build a platform, a platform that has homes, services, experiences, hotels, of course, and much more. And we’re going to try to be expanding this platform and continue to [launch] new businesses over and over again.”
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.
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More than 10,000 hotels across Europe have joined a class action against Booking.com, and organizers have extended the deadline to join the lawsuit to Aug. 29.
The lawsuit’s participation deadline was initially set for July 31.
The complaint is being organized by HOTREC, a Brussels-based hospitality association that represents hotels, restaurants and cafes across 36 European countries, and 30-plus national hotel associations.
The class action stems from a September 2024 European Court of Justice ruling on a case between Booking.com and more than 60 German hotels and hospitality groups.
HOTREC says that the court found that Booking.com’s parity clauses violated EU competition law, preventing hotels from offering lower prices or better availability via their own websites or other OTAs.
“Hotels across Europe are entitled to claim compensation from Booking.com for the financial losses suffered,” said HOTREC in a statement, adding that “affected hotels may be eligible to recover a significant portion of commissions paid to Booking.com” between 2004 to 2024, plus interest.
“Now is the time to stand together and seek redress,” said HOTREC president Alexandros Vassilikos. “This collective action sends a strong message: abusive practices in the digital marketplace will not go unchallenged.”
Booking Holdings, the parent company of Booking.com, disputes the claims, with a spokesperson for the company calling statements made by HOTREC and other hotel associations “incorrect and misleading.”
“The ECJ ruling that HOTREC and other hotel associations have been referencing to validate a potential class action did not conclude that Booking.com’s price parity clauses were anticompetitive,” said the Booking Holdings spokesperson. “The ECJ was not even asked to assess whether our clauses had anticompetitive effects or any impact on competition. The court simply stated that such clauses fall within the scope of EU competition law and that their effects must be assessed on a case-by-case basis.”
The spokesperson added that the company has “not received any formal notification of a class action.”
HOTREC said the case is being coordinated through the Dutch-based Hotel Claims Alliance Foundation and will be heard in Netherlands courts.
Expansion in resort markets focuses on revitalizing
high-potential assets in mature Spanish destinations.
INTERNATIONAL REPORT — Born out of Palma de
Mallorca, Spain, a decade ago, the Fergus Group’s 34 hotel assets stretch
across key Spanish holiday regions, including the Balearic and Canary Islands,
Catalonia, and Andalusia.
The Spanish company owned by Mallorcan
entrepreneur Pep Cañellas specializes in repositioning, managing, and
commercializing hotel assets across various brands from luxury to mid-market.
It owns and operates hotels under the Fergus Hotels and tent Hotels, while its
soft brand is Affiliated by Fergus.
Already, in 2025, the group has added seven
new properties to its portfolio, with three in Mallorca and one in Sitges on
the Barcelona coast. About a dozen more hotel transformation projects are in
the pipeline for 2025 and 2026, said CEO Bernat Vicens, particularly in the
Canary Islands and in new opportunities areas such as the Valencian Community,
with a special interest in Benidorm.
“Our growth strategy is strongly rooted in the
repositioning of underperforming assets in Spain’s mature vacation
destinations,” Vicens said. “That said, our priority when assessing new
opportunities is clear: we only move forward with projects that allow us to
create long-term value—for the hotel and the destination. We are selective in
our growth.”
The group’s local knowledge gives it the edge
on U.S. companies looking to expand in Spain in the holiday resort market, Vicens
added.
“Managing beach-oriented leisure hotels,
particularly in a mature destination like Spain, requires a very specific
expertise,” he said. “While the core principles of hotel management remain
common, vacation hotel management differs from urban or business hotels. Guest
behavior, expectations, seasonality and spending patterns demand a tailored
approach.
“Many large U.S.-based or publicly traded
companies rely on strong brand architecture but often lack the operational
experience and commercial strategies needed to succeed in this niche. Our
strength lies there.”
Vicens added that the Fergus Group model is
flexible and adapts to the ownership structure of each asset, noting that some
of the hotels are owned.
“We collaborate with a diverse range of
owners, from small family-run businesses to international investment funds and
other hospitality groups, who all share the objective of maximizing asset value,”
Vicens said.
The lineup
The Fergus Hotels brand includes 4- and 5-star
properties across Spain’s top coastal destinations. The brand operates three
distinct sub-segments: Fergus Club, aimed at all-inclusive, activity-rich,
family-oriented travel; the lifestyle-oriented Fergus Hotels; and the premium,
adult-oriented Fergus Style.
Sea View Suite at the Fergus Style Palmanova, Spain
In 2020, the company launched tent Hotels,
targeting the mid-range to premium market segment, and Gen Y and Z travelers,
with a modern and flexible approach.
“Tent Hotels is a trailblazer in the B&UB
(Bed & Unlimited Brunch) category,” Vicens said. “These properties are
tailored for travelers seeking flexibility and immersion in the local
destination.”
Affiliated by Fergus targets independent
hotels that wish to retain their identity while benefiting from Fergus Group’s
operational and commercial expertise.
Vicens said that as a third-party management
company, its strategy is to add value to both the holding company and its
partners. “We choose hotels that are not at the level of performance that they
could be and, through a change in management and reinvestment, take them to
another category.
“Our GOP delivery strategy is rooted in a
combined formula of efficiency and a consumer value-driven model. We focus on
unlocking underutilized potential in assets through targeted repositioning,
lean operational structures and a tailor-made, asset-by-asset commercial
strategy.”
This, too, Vicens believes, differentiates the
group from larger U.S.-based operators who may standardize performance.
“We adapt our approach to each
property—maximizing owner returns by blending operational flexibility with a
deep understanding of local requirements, seasonality, and labor dynamics.”
Bottom line
Vicens said the company’s success can be
measured by the international companies that have chosen them as a management
partner, such as Grupo Piñero and Grupo de Empresas Matutes (owner of the
Palladium Hotel Group).
To date, the group has invested over €130
million in hotel repositioning projects, “always with a focus on unlocking
long-term value.”
We expect to close 2025 with a turnover of €210 million and a GOP of €90 million, an 88% growth compared to recent years.
Bernat Vinces
Vicens said the group’s profits are soaring
along with its expanding portfolio and staff.
“We expect to close 2025 with a turnover of
€210 million and a GOP of €90 million, an 88% growth compared to recent years,”
he said.
This year, Fergus is opening seven new hotels,
including the Fergus Style Punta Arabí in Ibiza, its entry into Menorca with
two hotels, two new assets in Catalonia, and the ninth opening for its tent
Hotels brand. In 2026, three more hotels in Cala Major, Palma’s coastline, will
be renovated before reopening under the Fergus, Fergus Style, and tent Hotels
brands in 2027.
Vicens said the Spanish market continues to
demonstrate strong fundamentals in both domestic and international travel.
“We expect continued growth in ADR and RevPAR
in the leisure segment, especially in coastal and island destinations,” he said.
“With increased interest in quality, authenticity, and year-round experiences,
repositioned assets are in a strong position to outperform the market.”
Even with the uncertainty of global
macroeconomic factors, Vicens feels the outlook is positive, particularly for
operators who can adapt quickly and deliver tailored guest experiences.
“Each year, we add value to the sector by
introducing new repositioning projects that actively contribute to the
evolution of tourism in Spain,” he said.
Vicens gives the example of the €20 million
investments last year in launching three hotels in the Calvià area in
southwestern Mallorca: Fergus Club Mallorca Waterpark, tent Calvià Beach, and
tent Mojito Suites.
Closer
to home, overlooking the Bay of Palma, the group is expanding its footprint
with three new properties set to open in the seaside resort of Cala Major in
2027. Following an extensive repositioning project, the Fergus Style La Cala,
Fergus Marivent, and tent Costa Palma will re-emerge with upgraded facilities
and services.
It’s Friday 25 July, and I’ve just wrapped up for the week when a notification pings on my phone: “The far right have called a protest outside Highcross House in Leicester, which is housing refugees… If you know anyone who can get over, please let them know.” Our reporters raced to monitor the situation, and our photographer, Devon, arrived on scene within the hour. There were no more than a dozen right wing protesters, waving Israeli flags and opposing the hotel’s use for housing asylum seekers. It appeared to be a damp squib – nothing quite like the violent rallies in Epping that same week.
A group of anti-migrant protesters outside Highcross House. Photograph: Stand Up to Racism
Then we found out this protest was livestreamed to 57,000 people on YouTube, amplifying the reach across the country. What came next was our investigation into a new dynamic in the anti-migrant movement, termed ‘migrant hunting’ by so-called YouTube ‘auditors’. Auditing – which is nothing to do with financial accounts in this case – is the growing practice of filming and provoking police, security guards, council officers, protesters and more, in public.
The rest of this article contains language which may cause offence.
Chris Boyall: The face behind ‘England Till I Die’
Chris Boyall, pictured. Photograph: Stand Up to Racism
During the week of the demonstration, Chris Boyall, known online as ‘England Till I Die,’ livestreamed multiple times, including four times from outside the Highcross House hotel. On Monday 21 July, he instructed his 7,000 viewers to take action against hotels housing asylum seekers in Blackpool and Leicester. In another livestream, he called for violence against refugees and asylum seekers: “Massive respect as well for the people that go into these hotels… It ain’t going to be long before we have to come out of these fucking doors and fight on these streets.”
Two days later, on Wednesday 23 July, Boyall livestreamed from outside Highcross House again, holding his camera up to the window, and urging his 23,000 viewers to protest outside the hotel the following Friday. Despite his calls to action, only 12 people attended the protest, including another YouTube auditor who racked up 57,000 views during the demonstration.
Paul Dunbar: The self-described ‘citizen journalist’
Paul Dunbar, pictured. Photograph: Stand Up to Racism
Paul Dunbar, who was also at the protest, goes by ‘DP Audits’ online, and gained local attention earlier this year when a video of him being pushed to the ground by a police officer was seen by 180,000 people. Dunbar travels around the country for his YouTube channel, recording protests, police, and arguments on the street.
Dunbar arrived at the Highcross House protest and began livestreaming the demonstration. Here he engaged with police and said, “Contrary to the belief, I actually think the migrant interviews do help the left argument more than anything, cuz it humanises the migrants.” There was a lot of standing around, as Dunbar spoke to fellow YouTubers and asked passing hotel residents, “how long have you stayed here for?”
Dunbar’s social media activity reveals his far right views. In one post on X, he calls for a “British phobia law” to “punish” left wing activists and foreign nationals. His content has also been shared by far right activist Stephen Yaxley-Lennon, better known as Tommy Robinson. Dunbar responded to Yaxley-Lennon’s post with “Respect for sharing Tommy 💯👊❤️.”
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The incident at a pro-Palestine protest
Boyall and Dunbar outside Barclays Bank on Humberstone Gate during a pro-Palestine demonstration. Video: supplied
On Saturday 26 July, Boyall and others from the Highcross House protest gatecrashed a pro-Palestine demonstration outside Barclays Bank on Humberstone Gate. During the event, Dunbar filmed a woman being arrested by police on suspicion of assault. The video, titled ‘Mother arrested for an opinion by tyrant Leicester Police,’ garnered over 84,000 views. Subsequent videos on the same topic also brought in an audience of over 20,000 each.
Following this, a Leicestershire Police spokesperson said: “Officers received an allegation of assault in Leicester city centre on Saturday afternoon (26 July). It was alleged by a man that a woman had pushed him. To carry out further enquiries and establish the full circumstances surrounding the incident, a 31-year-old woman was arrested on suspicion of assault. An allegation was then made to officers that the man had spat in the woman’s face prior to her arrest.
“Following enquiries carried out at the scene, which included the review of CCTV, the woman was later de-arrested and not taken into police custody.
“No further action is being taken against the parties involved.”
After the protest, Boyall returned to Highcross House and told two asylum seekers outside the hotel to “have some respect, you’re in our country.” He stayed for about 10 minutes before leaving.
Boyall’s connections to the far right
Boyall and Dunbar together at the Highcross House protest on Friday 25 July. Photograph: Devon Winters
His content frequently focuses on right wing marches and events. He has been seen in London, where he met and took a photo with former English Defence League (EDL) leader Kevin Carroll. It’s believed that Boyall was a member of the now largely defunct EDL, as his Facebook page features photos of him posing in pubs with EDL flags. His social media also displays similar EDL symbols, like the Knights of the Templar and St. George’s Cross. In one video, he can be heard repeatedly chanting Tommy Robinson’s name.
His comments also suggest links to people close to Robinson. In another video published prior to the Highcross House protest, Boyall says that “I can confirm that Tommy Robinson will not be attending” the demonstrations in Epping, “that’s the information I’m being given.”
The potential danger posed by migrant hunters
The SUTR counter-protest at Highcross House on Friday 25 July. Photograph: Devon Winters
The run-up to the protest on Friday 25 July brought the actions of Boyall and Dunbar to the attention of the Leicester branch of Stand Up to Racism (SUTR). On Friday evening, the group was involved in organising a counter-protest outside Highcross House. A spokesperson said: “On Saturday, there were nine protests called by the far right up and down the country that we’re aware of, these included Manchester, Islington, Edinburgh, Newcastle, Oxford, Leeds, Holy Lake, Portsmouth, and Bournemouth. Each one of these was a counter demonstration called by SUTR. In some of these, it was 50/50.
“At the moment, what we’re seeing is a crisis of politics. There’s a lot of discontent with the political mainstream, and there’s a lot of fear.
“SUTR believes that the UK is fighting for its identity. Is this going to be a country where we are proud of our multiculturalism, or is it going to be one where we let white supremacists call the shots?
“As for those people who say if you ignore these far right forces they will go away, none of these protests were called by Stand Up to Racism, they were all triggered by organised, right wing activists, whipping up fear around asylum seekers. We have to respond to this if we want to keep tolerance and humanity in this country.”
“All our protests will be peaceful. We want to invite everybody who wants to see a fair country and equality in this country, and not allow these far right racists to whip up hysteria.”
Since 2023, Highcross House has been used to house 275 refugees and asylum seekers whilst their applications to stay in the country are assessed. Many people find themselves in temporary migrant housing for various reasons. Hotels are not a perfect solution to a complicated problem, especially since government departments often lack the resources they need. It’s important to remember that many people in these temporary homes have fled dangerous situations in their home countries.
Boyall and Dunbar, and others in the anti-migrant movement in Leicester and across the UK, pose a serious concern to hotel security, staff and temporary residents. Migrant hunters like Boyall and Dunbar may put vulnerable people at risk by posting their faces on YouTube and provoking them.
Boyall did not respond to requests for comment.
Update Friday 8 August 2025:
In response to our investigation, Dunbar said:
“If you want to run Stand Up to Racism’s nonsense at the minute, in this current climate, and take backlash from your “right wing” Leicester readers, then you crack on. But I wouldn’t start calling me and people concerned far right because of listening to actual far left nonsense. But it’s up to you. I feel that article is slander as well.
“The British phobia law was clearly humour as this country seems to think it’s OK to have certain religions trying to be exempt from criticism… still beating the Tommy Robinson drum… I thanked him for sharing a post.
“And as for far right… if you and Stand Up to Racism think I’m far right then I’m sorry, but your point of view is null and void now because what a load of shite.
“Why don’t you ask Stand Up to Racism to answer some serious questions about the disproportionate amount of violence and sex crimes coming from these Afghan and Eritrean etc illegal migrants. They won’t, will they? Because they have silly narratives as well.
“I’ll tell you straight; I have two young daughters and if the crime stats are telling me there is an issue then I no longer give a shit about the left’s ‘oh but we need to help everybody’ bullshit.
“Our children and women’s safety now is top priority… that is not racist… then you get to economic. Of course, migration [is] fine, if you’re already loaded. The working class, ordinary people pick up the bill… and I’m not talking about illegal migration here. I think we have issues massively there… way too high numbers. I mean literally, where is everybody going to live? It’s not rocket science.
“I’m right, not far right. Stand Up to Racism is 100% far left. Bare [sic] that in mind.
“See my migrant interviews on my TikTok. They’ve gained me thousands of Muslim followers and people from these countries. So yes, I think my statement is correct.”
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