Skift Take
Oops, they did it again. Will the Airbnb-branded apart-hotel developer Niido ever learn its lesson?
The developer behind Niido Powered by Airbnb, the hotel-like concept that was first announced in 2017, is at it again.
Newgard Development Group last week angered the residents of its latest Niido project when it informed them that their luxury apartment complex in Nashville would soon not only allow, but encourage, tenants to rent out their units on Airbnb.
"I would say to Niido, 'How can I trust you?'," Cailin Cassidy, a resident of the Olmsted in Nashville, told Skift. "You have taken my apartment home from me, and you are trying to turn it into a hotel to make some money and compete in any market you can sneak your way into."
In a Niido Powered by Airbnb building, residents are encouraged to rent out their units on Airbnb and, in return, their landlord — Niido/Newgard — collects a 25 percent commission whenever they do. These complexes also feature services that you might find in a hotel, such as a front desk concierge or agent.
While other apartment buildings around the world operate on similar models as part Airbnb's "Friendly Buildings" program, Niido was the first such landlord to have access to the Airbnb brand itself, and Niido has since collected $220 million in institutional funding to grow its inventory to 14 different apartment complexes by 2019. The relationship between Niido and Airbnb is somewhat similar to how a hotel company lends its brand name to an individual hotel owner. Only in this case, Airbnb is extending its brand name to a multifamily housing developer.
And yet again, as was the case in Kissimmee, Florida, where Niido purchased an existing apartment community, the residents of Nashville's Olmsted have said they felt "blindsided" when they finally got confirmation that their home would soon become, essentially, a hotel.
That confirmation officially appeared in an email from Niido's chief marketing officer Cindy Diffenderfer on Friday, August 10.
An hour later, Niido gave an exclusive story to Conde Nast Traveler, which touted the Nashville property as the "first Airbnb-Niido apartment complex."
When Skift recently spoke to a current resident of Kissimmee's Domain Apartments, however, he told Skift that he has already seen a number of Airbnb guests staying there as far back as December and January, shortly after Niido bought the community.
"You could already tell people were visiting here back in December and January," Tony Kolodzej told Skift. "They would only be here for the weekend or a couple
