Airbnb is close to closing a nearly $1 billion funding round at a $24 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 $21 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 $10 billion in revenue by 2020, with profits of $3 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.
This year, Airbnb expects $850 million in revenue and an operating loss of about $150 million as it pushes to expand its services to new parts of the world and fights regulators over taxes and lodging laws.
For example, New York attorney general Eric T. Schneiderman deemed nearly three-quarters of Airbnb rentals in New York City illegal, and the company had to remove about 2,000 listings.
The home rental company last raised money in April 2014 at a $10 billion valuation. If it can seal the deal on this new round at the reported $24 billion valuation, it will be the second highest-valued startup out there today, ranking only behind Uber.
--This story first appeared on Business Insider.