A Swiss company has opened an Airbnb-style accommodation service in Iran, as more western firms seek business opportunities in the country after a deal was reached to curb Tehran’s nuclear programme in return for sanctions relief.

OrientStay, which began operating two weeks ago, lists 200 flats in nine cities including Iran’s top tourist destination of Isfahan. So far five foreign customers have reserved accommodation, two of whom are currently visiting Iran.

The site’s director, Mehrzad Khoï, is attending a two-day conference in Geneva in the hope of finding further investment. Around 600 people have gathered at the Grand Hotel Kempinski for the second Europe-Iran Forum*.

Participants include oil executives, investment banks and other western companies considering doing business with the Islamic republic. Sanctions are expected to be lifted several months after Iran and the west begin implementing the nuclear deal in October.

At a time when Iran is experiencing a tourism boom, OrientStay offers an alternative to hotels booked through travel agencies and tour operators. Prices range from €20-€300 a night for one- to five-bedroom accommodation.

“Iran has a total of 1,500 hotels and these days when you want to reserve a room, all of them are full. The country has a lack of accommodation and more foreigners want to visit,” Khoï told the Guardian. “But above all, our concept is to offer foreign tourists an authentic and real experience of Iran. We want them to see the real people, which is usually the biggest surprise for them.

“By doing this, we want to change the image of Iran worldwide. We want foreign tourists to experience our way of life, our culture, and not as part of ready-made, 10-member tours. We don’t want them to just see the nice ancient monuments, we want them to see the people. When tourists see the people, the image is more real and satisfaction is much better.”

OrientStay, which has gained permission from the Iranian authorities to operate, is available only to incoming tourists, not resident Iranians. It takes all payment methods, giving it an advantage over hotels which cannot accept foreign cards because of banking restrictions.

Xanyar Kamangar, a founding partner of the Iran-focused asset management and private equity group Griffon Capital, said his firm was considering investing in the project.



“It looks like OrientStay has fixed some of the issues that an Airbnb business model would have in a country like Iran,” he said at the conference. “Iran’s ministry of culture and Islamic guidance has realised that there is a shortage of hotel rooms and came to the conclusion to help this service.”

Khoï, an Iranian-French businessman, said his company had advertised to find the first 200 flats, and the plan was for people to come forward to add their properties to the site. Those willing to participate would have to apply through OrientStay, which would refer them to the authorities to obtain permission.

Khoï said the site would soon launch a tour guide service. Tourists from some countries, including Britain and the US, are required to have tour guides during their stay in Iran.

*The Europe-Iran Forum paid for the Guardian’s travel and accommodation.