Airbnb buys HotelTonight as it gears up to go public | Articles | Strategy

29 2018 taken in Paris shows a toy umbella and a figurine on coins next to the logo of rental website Airbnb.- Airbnb

AFP Getty Images File

Airbnb co-founder, CEO and head of community, Brian Chesky, said: "A big part of building an end-to-end travel platform is serving every guest, whether they plan their trip a year or a day in advance". Airbnb and HotelTonight will operate as separate entities, Airbnb said, with HotelTonight keeping its own app and website.

Since introducing deluxe features early previous year, Airbnb has more than doubled the number of rooms available in hospitality venues that aren't someone's half-finished basement, and tripled hotel bookings between 2017 and 2018. The agreement will make it simpler for Airbnb clients to book inns without arranging weeks or months ahead of time and will help Airbnb grow its short term rental hosts and visitors.

HotelTonight's private valuation was estimated at more than US$400 million (RM1.6 million) after several funding rounds.

HotelTonight is an online travel app for users to find last-minute discounted hotel accommodations throughout the Americas, Europe and Australia. Early past year, it made changes to its site to make it easier for boutique hotels and bed-and-breakfasts to list their rooms.

22 'Terrorist Training Camps Run in Pakistan', No Action Taken - Indian Official
The US also calls it a front for Lashkar-e-Taiba (LET), a Pakistan-based group accused of orchestrating attacks in India, including the 2008 Mumbai attack that killed 166 people.

Airbnb noted that in 2018, it more than doubled the number of rooms available on its platform in properties that hosts categorized as boutique hotels, bed and breakfasts, and other hospitality venues like hostels and resorts.

Gradually, some of those rooms - particularly ones in boutique hotels - will also be offered by Airbnb. "You're on your way to a great stay", the company says on its website. But it's a fair bet that Airbnb is sinking a significant sum into the acquisition.

Unlike most sky-high valued tech firms, Airbnb and HotelTonight do both now appear to be profitable operations. The company has been profitable since 2016 and is now reportedly aiming to go public at the end of this year, with Chesky telling Recode last May that Airbnb will potentially be "ready to IPO" this year.

Chip Rogers, president and CEO of the American Hotel & Lodging Association (AHLA), issued the following statement in response to Airbnb's acquisition of Hotel Tonight: "Airbnb's latest scheme is just further proof the company is playing in the hotel space while evading industry regulations".

Latest News