December 7, 2020 -- InvestorsHub NewsWire -- via
Financialnewsmedia.com News Commentary -- One of the
under-the-radar investments is about to grow faster than more
well-known industries. The sharing economy is rapidly growing and
evolving… rapidly! The two most common examples of the
sharing economy are the sharing of private vehicles via ride
sharing companies like Uber and the sharing of private residences
and lodging via accommodation websites. This accommodation form of
peer-to-peer exchange has been growing for the past several years.
In 2015, Airbnb (NASDAQ: ABNB)
indicated that they had over one million hosts on their site, and
over the summer of 2015, indicated their hosts were accommodating
over a million guests per night, making them comparable in
inventory and transaction volume to the world's largest hotel
brands… but it has grown quickly since then and is set for
their IPO very soon. A recent
report from Statista said that the sharing economy
services have exploded in popularity over recent years with many
expecting this trend to continue, with the total value of the
global sharing economy predicted to increase to some 335
billion U.S. dollars by 2025, from only 15 billion U.S.
dollars in 2014. Active companies in the markets this
week include: TripAdvisor,
Inc. (NASDAQ: TRIP), World Series of Golf,
Inc. (OTC:
WSGF), Groupon, Inc. (NASDAQ: GRPN), Expedia
Group (NASDAQ: EXPE), Booking Holdings
Inc. (NASDAQ: BKNG).
According to a report from a hospitality insider found that:
"There no longer is any question that the sharing economy-and the
short-term rental market specifically is here to stay. Once
dismissed as a relatively inconsequential niche product and a
distant cousin to traditional hotels, STRs have become a widely
accepted, mainstream form of nightly accommodation. STRs total more
than 10% of the size of the traditional U.S. hotel room supply and,
according to Skift Travel, have become an estimated $115
billion industry as of 2019. This alternative lodging
market has evolved from catering to the adventurous, millennial
leisure traveler to targeting core hotel guests like the business
traveler, a la Airbnb Plus. Given the undeniable change
underway in the lodging sector, historical hotel valuation
underwriting practices will no longer suffice. A reasonable
understanding of the short-term rental market is required for
properly valuing hotels."
World Series of Golf, Inc. (OTCPK:
WSGF) BREAKING NEWS: WSGF –
P2P Short-Term Rental Investment Firm Vaycaychella Adds New
Caribbean 3 Unit Property To Portfolio Available On
Airbnb - World Series of Golf, Inc. ("WSGF"), through
its sharing economy technology subsidiary serving the short-term
rental market, Vaycaychella, today
announced closing on the acquisition of a historic building in Old
San Juan, Puerto Rico. The property has three units which
will be made available for short-term rentals through Airbnb, VRBO
and Booking.com after the property is refurbished.
WSGF is in the process of changing its corporate name in
conjunction with the acquisition of Vaycaychella earlier this
year. "We here at Vaycaychella are enthusiastic participants
in the sharing economy specifically tied to the short-term rental
sector of the sharing economy currently spotlighted by the pending
Airbnb IPO," said William "Bill" Justice, CEO of Vayaychella.
"We have built a pilot ecosystem model connecting investors with
individuals seeking the development and operation of short-term
rental properties. Over the past three years we have
partnered with vacation property operators in
the Caribbean to build a portfolio of properties with an
estimated value over $10 million. Now, we are excited to
scale that model with the introduction of a peer-to-peer
application, also known as a P2P app, automating the connection
between investors and prospective short-term rental property owners
and operators."
To learn more about Vaycaychella's strategy to capitalize its
own growth in conjunction with the Airbnb IPO, see CEO William
"Bill" Justice's letter to
investors published Friday, December
4th. Vaycaychella recently announced
inviting individuals to sign up as Beta Users to begin testing the
Vaycaychella P2P Investment App. Vaycaychella's vision is to
empower existing and would-be short-term rental property owners to
access investment capital for property acquisitions and
improvements financed outside the conventional lending and
investment market.
Through Vaycaychella's P2P app, small business lenders and
investors, and even private individuals can connect with
entrepreneurial short-term property rental operators to access real
estate leveraged investment opportunities not usually available
through conventional brokers and agents. Likewise,
entrepreneurial short-term property rental operators now have
access to a wider variety of investment options than ordinarily
available through conventional channels.
Vaycaychella has built a pilot client base serving
a Caribbean based vacation property owner with 10
beachfront community vacation homes currently under
management. Vaycaychella has financed the property
owner to acquire and refurbish the 10 premium properties which
serve as collateral on Vaycaychella's investment.
Last week, Vaycaychella announced adding a boutique hotel in
the Caribbean to its portfolio of short-term rental
properties available on sharing economy apps like Airbnb, VRBO and
Booking.com. Sharing economy apps are taking an increasing
share of the $32
billion Caribbean vacation
market. Today, Vaycaychella adds the
property in Puerto Rico to its portfolio. Once
refurbishment is completed, the building will include three
short-term rental units available on sharing economy apps like
Airbnb, VRBO and Booking.com. To learn
more and keep up with the latest updates,
visit https://www.vaycaychella.com/.
Other recent developments in the sharing industry
include:
Groupon, Inc. (NASDAQ: GRPN) recently announced its financial results for the
quarter ended September 30, 2020 and provided details on
its recent operating progress. "The entire Groupon
organization is focused on returning the company to growth and in
the third quarter, we made notable progress," said Aaron
Cooper, Interim CEO of Groupon. "We increased inventory by 50
percent in our test markets and launched several product features,
all aimed at increasing Groupon's ability to drive engagement with
merchants and consumers. At the same time, in the midst of the
global pandemic, we drove sequential quarterly Billings growth,
continued to take costs out of the business and gained operating
leverage, further demonstrating the durability of our business
model. These solid results are a testament to the hard work of our
organization and we believe we are well positioned to take share in
the trillion dollar Local market."
Since the start of the global pandemic, we have stabilized our
business and launched a growth strategy. As a result, we've not
only generated free cash flow since the end of March, we have also
built a cash position as of September 30, 2020 (excluding
our revolver) that is higher than our cash position at the same
time last year. With a solid balance sheet and a focused
organization, we have a strong foundation that should allow us to
both weather the volatility of COVID-19, and execute our growth
strategy. Our strategy is focused on driving customer
purchase frequency and unlocking our marketplace flywheel, which we
believe will allow us to achieve sustainable, top-line growth.
Delivering on our core merchant and customer value propositions is
also at the center of our growth strategy.
TripAdvisor, Inc. (NASDAQ: TRIP)
the world's largest travel platform, recently
announced the launch of two new technology solutions for
hotels – Spotlight and Reputation Pro – to help hospitality
businesses rebuild traveler confidence, attract new customers and
make smart, data-driven decisions to increase profitability during
these unprecedented times.
Combining the latest technology and software with Tripadvisor's
unrivalled reach and scale, both Spotlight and Reputation Pro offer
something new to the market, empowering hospitality businesses with
the tools they need to increase customer confidence in their brand,
forecast demand and set the most profitable nightly rates.
The combined launch signals Tripadvisor's increased focus on
delivering best-in-class technology solutions that will help the
hospitality industry recover in the wake of the COVID-19 pandemic,
following the launch of popular free tools such as Travel Safe
and Contactless Menus and the global rollout of Menu
Connect earlier this year.
Expedia Group (NASDAQ: EXPE) recently
released new versions of the Brand Expedia®, Hotwire® and
Vrbo® iOS apps to take advantage of the
capabilities available in iOS 14. The features will unlock new ways
to view the latest travel deals with Hotwire, and easily access
upcoming reservation details booked through Brand Expedia and
Vrbo.
"Given all that is happening right now, many people across the
globe are looking to travel as a way to cope and recharge during
this crisis through a change of scenery, exploration and the chance
to safely create new memories," said Tucker Moodey, President
of Retail Product & Technology, Expedia Group. "Harnessing the
latest iOS 14 features, our brands joined forces to provide added
support and greater transparency to help travelers plan and find
much-needed discounts, making travel more accessible and
worry-free."
Booking Holdings
Inc. (NASDAQ: BKNG) recently
reported its 3rd quarter 2020 financial results. Third
quarter gross travel bookings for Booking Holdings Inc. which
refers to the total dollar value, generally inclusive of taxes and
fees, of all travel services booked by its customers, net of
cancellations, were $13.4 billion, a decrease of 47% over a
year ago (approximately a 48% decrease on a constant-currency
basis). Room nights booked in the 3rd quarter decreased over a year
ago. The Company's results for the three and nine months
ended September 30, 2020 have been significantly and
negatively impacted due to the COVID-19 pandemic and the resulting
government orders.
Booking Holdings' total revenues for the 3rd quarter of 2020
were $2.6 billion, a 48% decrease from the prior year
(approximately a 49% decrease on a constant-currency basis). Net
income in the 3rd quarter of 2020 was $801 million, a 59%
decrease as compared to the prior year. Net income for the 3rd
quarter of 2020 includes an unrealized gain on marketable equity
securities of $730 million while the 3rd quarter of 2019
includes an unrealized loss on marketable equity securities
of $49 million. Additionally, the Company recorded an
impairment charge of $573 million for OpenTable and KAYAK
goodwill and unrecognized tax benefits of $64
million related to French and Italian tax matters in the 3rd
quarter of 2020. Net income in the 3rd quarter of 2020
was $19.49 per diluted share, a 57% decrease as compared
to the prior year.
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