Airbnb hits US$2.7B Q4 revenue but profits slide as hotel push accelerates

GLOBAL – Airbnb has posted blockbuster fourth-quarter results, with revenue surging 12% to US$2.78 billion and gross booking value climbing 16% to US$20.4 billion, both handily beating Wall Street expectations.

However, earnings per share of US$0.56 missed forecasts, sending shares down modestly as investors weighed robust growth against near-term profit pressure.

Record Bookings, Higher Spending

The platform recorded 121.9 million nights and experiences in Q4, a hearty 10% increase.

For the full year, revenue crossed US$12.2 billion, up 10% from 2024, with net income holding at a solid US$2.5 billion.

So why the profit dip? Blame ambition.

Marketing spend jumped 27% to US$695 million as Airbnb aggressively pursues new growth avenues, planting seeds today for a forest of future bookings.

Hotels: The Unlikely New Frontier

Here’s the real plot twist.

Airbnb, once the sworn enemy of traditional hospitality, is quietly embracing hotels.

The company is piloting boutique and independent hotel listings in cities where short-term rental regulations have tightened.

CFO Ellie Mertz revealed that hotel night bookings are already growing at nearly double the platform average.

While still a “single-digit percentage” of total nights, Airbnb aims to exit 2026 with hotels as a “meaningfully larger” part of the business. Former Booking.com veteran Lou Zameryka has been poached to lead this charge.

Experiences and AI: The Long Game

Nearly half of all Experience bookings now come from users who aren’t even renting accommodations.

Even more striking: 70% of Airbnb Originals bookings in Paris are made by locals.

CEO Brian Chesky admitted this vertical will take years to mature, but he’s “very, very bullish.” Meanwhile, the company is betting big on artificial intelligence, crafting an “AI-native experience” where the app doesn’t just search, it knows you.

Early tests of natural language search are already rolling out.

What’s Next

With major events like the FIFA World Cup on the horizon, Airbnb expects revenue growth to accelerate to “low double digits” in 2026.

The company is methodically transforming from a home-rental platform into a comprehensive travel ecosystem. Profits may be taking a breather, but the destination looks increasingly compelling.

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