Deal values HotelTonight at around $465M
Airbnb has agreed to buy HotelTonight for an undisclosed amount. The bookings platform began as an app solely focused on last-minute travel, but has expanded its services to allow customers to book rooms up to 100 days in advance. This puts it in direct competition with the likes of Expedia and Booking Holdings.
By the numbers: Sources told the NYTimes that the acquisition values the company at around $465 million. HotelTonight has raised $117 million in venture funding from Accel, Coatue Management, and Battery Ventures.
Interesting anecdote: Airbnb’s Brian Chesky and Hotel Tonight’s Sam Shank have been friends for years and they both felt like “Davids going against the Goliaths of the hotel industry.” To research the deal, Chesky spent two weeks booking and living in different HotelTonight properties, according to CNBC.