SAN FRANCISCO – Airbnb said it plans to provide HotelTonight, a service for travelers seeking last-minute hotel reservations, in a deal that will extend the accommodation's portfolio of traditional and boutique hotels.
Terms of Agreement were not disclosed. The acquisition value of HotelTonight in its latest private valuation, $ 465 million, said two people who were informed of the agreement and not authorized for the publication of the prize. That would make it the biggest buyout in the air.
In a statement, Brian Chesky, CEO of Airbnb, stressed the company's desire to expand into every aspect of the journey. "Much of building an end-to-end travel platform serves every guest, whether they plan their trip a year or a day in advance," he said.
The San Francisco-based company is part of a coterie of high-quality startup, often called "unicorns". "Many of these unicorns are now moving towards the public markets, including riding companies Uber and Lyft. Last year, Lyft revealed its prospectus for public offerings, which showed that the company grew rapidly but also lost money. Airbnb has gained profits, Except for certain costs, over the past two years, the company said in January.
HotelTonight has founded $ 127 million in venture finance in 2010, according to Crunchbase, which began as an app that listed discounted rooms to last-minute travelers, but the company prioritized growth Profits in the first five years of operation, burning as much as $ 30 million a year, according to a blog post by Sam Shank, HotelTonight's CEO and co-founder. In 2015, HotelTonight was appointed 37 employees, or 20 percent of staff.
In 2017, the HotelTonight extended the time frame where customers can book hotels for 100 days, put it in direct competition with likewise Expedia and Booking Holdings, the $ 80 billion travel behemoth that owns Priceline and Booking.com.
Airbnb is also locked in competition with Booking Holdings. The two companies have turned off and are announcing an increasing number of housing listings in the past year. Airbnb keys currently six million. Buying HotelTonight gives Airbnb access to even more stock or properties. Airbnb said HotelTonight will continue to function as a stand-alone business.