Airbnb is buying HotelTonight to broaden its business

Airbnb is buying the hotel booking site HotelTonight in a further push to broaden its business beyond short-term home rentals. The privately held HotelTonight partners with hotels to make unsold rooms available to last-minute travellers at discounted rates. The deal will give Airbnb — best known as a place to rent an apartment, house, or room in a private home — another source of revenue and customer growth as it seeks to become a full-service travel provider… Terms of the deal were not disclosed. San Francisco-based HotelTonight was last valued at $463 million in a 2017 funding round. It has raised about $127 million since its founding in 2010… from backers including Accel, Battery Ventures, First Round Capital, Coatue Management and GGV Capital. HotelTonight will continue to be operated as a separate brand with its own website and app, but over time some of its rooms will also appear on Airbnb’s platform… Airbnb, which was valued at $31 billion in its latest fundraising in 2017, is eyeing an initial public offering in the next two years… Airbnb has added premium and luxury home rentals to its platform, and made it easier for boutique hotels to list their rooms on its site, as it aims to reach more than 1 billion guests a year by 2028. It has more than 6 million listings for places to stay, but most are privately owned homes or rooms.
Shannon Bond