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Airbnb purchases last-minute hotel-booking app HotelTonight in its latest acquisition

Airbnb purchases last-minute hotel-booking app HotelTonight in its latest acquisition
Airbnb purchases last-minute hotel-booking app HotelTonight in its latest acquisition

Since Airbnb gears up for its huge leap to the public markets, it is expanding its lodging platform to add more than simply treehouses and unique houses.

These days, the business has confirmed its intent to get HotelTonight, the programmer of a hotel-booking app which allows travelers to organize last-minute lodging. The deal was formerly reported by The Wall Street Journal, which composed in January that discussions to get the trade had”gone cold”

Airbnb is anticipated to complete an initial public offering whenever this season, however co-founder and chief executive officer Brian Chesky has refrained from showing a particular timeline. Much like Uber, which intends to develop into the greatest transport company, Airbnb’s long-term dream is to construct an end-to-end traveling platform complete with dwelling sharing, resort booking, business travel arrangements, adventures and much more.

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Airbnb declined to disclose terms of its own HotelTonight acquisition. When the deal is finished, the HotelTonight app and site will continue to function independently, together with co-founder and CEO Sam Shank reporting to Airbnb’s president of houses, Greg Greeley.

“We started HotelTonight because we knew people wanted a better way to book an amazing hotel room on-demand, and we are excited to join forces with Airbnb to bring this service to guests around the world,” Shank said in a statement. “Together, HotelTonight and Airbnb can give guests more choices and the world’s best boutique and independent hotels a genuine partner to connect them with those guests.”

Launched in 2010, San Francisco-based HotelTonight gained a valuation of $463 million using a $37 million Series E financing in 2017, based on PitchBook. In total, the startup has raised $131 million in venture capital financing from Accel and Battery Ventures, that were engaged in just about any financing around for HotelTonight. Other ancient investors comprise Forerunner Ventures and First Round Capital.

Airbnb, for its part, has been appreciated at $31 billion at 2017, with a $1 billion around. Back in January, Airbnb stated it had been rewarding for the 2nd consecutive year in an EBITDA (earnings before interest, taxation, depreciation, and amortization) foundation.

HotelTonight offers discounts in hotels in the Americas, Europe, and Australia. The organization partners with resorts to provide un-sold rooms, catering to business travelers or people looking to create last-minute arrangements. The sale will make it simpler for Airbnb customers to reserve hotels without going months or weeks beforehand and will help Airbnb enlarge its community outside short term leasing hosts and guests.

Airbnb introduced boutique resorts to its stage in ancient 2018 and has boosted its rapid growth. In 2018, the organization said it doubled the amount of boutique resorts, bed, and breakfasts, hostels, and hotels out there. Airbnb’s business travel device, Airbnb for Work, also had rapid success. Launched in 2014, it currently accounts for 15 percent of reservations. In total, Airbnb provides some 5 million places to remain in 191 nations.

Airbnb is kicking off 2019 having an acquisitive series. In January, the business acquired Danish startup Gaest, a supplier of a marketplace-style platform for individuals to post and reserve places for meetings and other work-related occasions. The business again declined to stabilize the purchase price, though awarded Gaest had increased only $3.5 million in equity financing, the bargain pales compared to Airbnb’s HotelTonight acquisition.

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2019 is piling up for a particularly active year for unicorn IPOs, a few of which were probably postponed with a weeks-long authorities shutdown at the beginning of the year. Lyft, which lately introduced its S-1, will be the very first billion-dollar organization to depart into the stock markets, followed closely by Uber, Slack, and Pinterest. Can Airbnb nudge its way in that lineup? We are going to see.