INSUBCONTINENT EXCLUSIVE:
As Airbnb gears up for its big leap into the public markets, it’s expanding its accommodations platform to include more than just
treehouses and quirky homes.Today, the company has confirmed its intent to acquire HotelTonight, the developer of a hotel-booking
application that lets travelers arrange last-minute accommodations
The deal was previously reported by The Wall Street Journal, which wrote in January that negotiations for the transaction had “gone
cold.”Airbnb is expected to complete an initial public offering as soon as this year, though co-founder and chief executive officer Brian
Chesky has refrained from revealing a specific timeline
Like Uber, which plans to become the ultimate transportation company, Airbnb’s long-term ambition is to build an end-to-end travel
platform complete with home sharing, hotel booking, business travel arrangements, experiences and more.Airbnb declined to disclose terms of
its HotelTonight acquisition
Once the deal is complete, the HotelTonight app and website will continue to operate independently, with co-founder and CEO Sam Shank
reporting to Airbnb’s president of homes, 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
“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.”Founded in 2010, San Francisco-based HotelTonight garnered a valuation of $463 million with a $37
million Series E funding in 2017, according to PitchBook
In total, the startup has raised $131 million in venture capital funding from Accel and Battery Ventures, which have participated in nearly
every funding round for HotelTonight
Other early investors include Forerunner Ventures and First Round Capital.[gallery ids="1794066,1794068,1794069"]Airbnb, for its part, was
valued at $31 billion in 2017, with a $1 billion round
In January, Airbnb said it was profitable for the second consecutive year on an EBITDA (earnings before interest, taxes, depreciation and
amortization) basis.HotelTonight offers discounts at hotels in the Americas, Europe and Australia
The company partners with hotels to offer un-sold rooms, catering to business travelers or those looking to make last-minute arrangements
The deal will make it easier for Airbnb users to book hotels without planning weeks or months in advance and will help Airbnb expand its
community beyond short-term rental hosts and guests.Airbnb introduced boutique hotels to its platform in early 2018 and has boasted its
In 2018, the business said it more than doubled the number of boutique hotels, bed and breakfasts, hostels and resorts available
Airbnb’s business travel unit, Airbnb for Work, also had quick success
Launched in 2014, it now accounts for 15 percent of bookings
In total, Airbnb offers some 5 million places to stay in 191 countries.Airbnb is kicking off 2019 with an acquisitive streak
In January, the company acquired Danish startup Gaest, a provider of a marketplace-style platform for people to post and book venues for
meetings and other work-related events
The company again declined to pinpoint the price, though given Gaest had raised just $3.5 million in equity funding, the deal pales in
comparison to Airbnb’s HotelTonight acquisition.2019 is stacking up to be a particularly busy year for unicorn IPOs, some of which were
likely delayed by a weeks-long government shutdown at the start of the year
Lyft, which recently unveiled its S-1, is poised to be the first billion-dollar company to exit to the stock markets, followed by Uber,
Will Airbnb nudge its way into that lineup We’ll see.
