Airbnb will convert commercial properties into luxury rentals

Airbnb is collaborating with RXR Realty, a New York-based real estate developer, owner and operator, to convert portions of commercial properties into luxury rentals available exclusively on the Airbnb platform.

The first of these rentals will be 200 units opening next year on 10 upper floors of New York’s 75 Rockefeller Plaza, a 33-story building in Midtown Manhattan built in 1947.

The apartment-style suites will have digitally enabled, dedicated concierge service, technology-enabled access and fully stocked kitchens. Guests will also have access to a private social club and business center on the building’s top floor that will offer meeting and event space and co-working areas. The building will also have a restaurant and bar on the ground floor.

In a statement, Airbnb says the units will “blend the features of a luxury hotel with all the comforts of a home.”

“When we launched Airbnb over 10 years ago, it was immediately clear how people opening their homes could make guests feel like locals,” says Airbnb co-founder, CEO and head of community Brian Chesky.

“With this new partnership with RXR, we hope to provide that same unique feeling, in the form of new spaces in the heart of Midtown Manhattan and elsewhere so that everyone can enjoy an authentic New York experience.”

Airbnb says this "new category of urban lodging" will be executed and operated by RXR, but the two companies will collaborate on room and building design, the development of a concierge program staffed by “local and knowledgeable ‘hosts’,” the curation of local experiences, services and amenities and innovations in technologies and processes for travelers.

“With the lines between business travel and leisure travel becoming increasingly blurred, RXR and Airbnb are offering a travel experience that immerses guests in a dynamic, thriving community in the heart of Rockefeller Center that's vastly different than anything else in the market today,” says Scott Rechler, chairman and CEO of RXR Realty.

The two companies are also considering creating similar rentals in other RXR properties, including its 10-building development in the Brooklyn Navy Yard.

As to whether Airbnb will expand this concept to other cities, the company’s senior communication manager, Liz DuBold Fusco, says, “Certainly we are interested in this vision for this new form of urban hospitality as one that’s important to us, but for now we are focusing on this new partnership with RXR.”

This is Airbnb’s latest move that takes the home-sharing platform deeper into the traditional hotel space. In March, Airbnb boosted its inventory of hotels with its acquisition of HotelTonight, a booking platform that works with properties around the world. And since February 2018, Airbnb has been connecting with accommodation distribution networks including SiteMinder, Cloudbeds and Availpro.