Airbnb is backtracking on a plan to delist its properties in Israeli settlements in the West Bank, after backlash that included the company being banned from doing business with the state of Texas.

“We will continue to allow listings in all of the West Bank,” the home rental booking giant said in a news release Tuesday. “Any profits generated for Airbnb by any Airbnb host activity in the entire West Bank will be donated to non-profit organizations dedicated to humanitarian aid.”

Texas Comptroller Glenn Hegar, whose office last month added Airbnb to a list of companies banned from working with Texas, indicated in a news release that the move would likely get the company back in good graces.

"While de-listing will not be immediate and Comptroller staff will carefully review the details of this decision before removing Airbnb from our anti-Israel list, we are already in communication with Airbnb to begin that process," the release said.

Airbnb decided late last year to disallow rentals in West Bank settlements after criticism from Human Rights Watch, which accused the company of profiting off of “bed and breakfasts on stolen land.” The company also removed listings from two other disputed territories, South Ossetia and Abkhazia, Russian-backed separatist regions that have declared independence from Georgia.

BACKGROUND: In pro-Israel move, Texas books boycott of Airbnb

But some Texas officials argued the move was anti-Israel. The company wound up on a Texas comptroller list of organizations banned from doing business with the state because they boycott Israel. Airbnb faced similar actions in other states, as well as lawsuits from booking hosts.

Airbnb maintained that its actions did not constitute an Israeli boycott, noting that it operates more than 20,000 listings in Israel. It condemned the Boycott, Divestment, Sanctions movement, a Palestinian-led movement that encourages boycotts against Israel in an effort to pressure Israelis to withdraw from occupied territories, including the West Bank.

Texas remained unmoved. Though Airbnb has no contracts with the state, Airbnb’s name on the banned list meant that anyone receiving state funding for travel — from state employees to University of Texas students — could not book stays via Airbnb.

ALSO READ: Does the Texas anti-Israel boycott law pass constitutional muster?

Hegar said in the news release that he is pleased with the company's reversal.

"When my office made the decision to add Airbnb to Texas' list of companies that boycott Israel, I noted that my agency has a long history of supporting Israel against those wishing to undermine its economy," he said. "I applaud Airbnb for taking the time to carefully consider its decision and impacts it could have on individual Israeli citizens as well as local and regional economies."

The move to allow West Bank listings again was a settlement term to end lawsuits brought by hosts, potential hosts and guests who objected to the policy, according to the news release. All those lawsuits have been settled.

Airbnb also will revert to allowing listings in South Ossetia, Abkhazia and other disputed territories worldwide, the company said, adding that it will not profit off the listings in such regions, but will donate listing fees to nonprofits across the globe.

