Skift Take
Will Airbnb stick to its boutique and independent-only stance on hotels? It could put it at a serious disadvantage when it comes to competitors like Booking or Expedia in the long run. But if Airbnb winds up offering a wider swath of hotels, it could boost its brand even further. Either way, it's guaranteed to be interesting. We'll get the popcorn ready.
Airbnb confirmed Thursday its intent to acquire hotel booking platform HotelTonight.
Terms of the deal were not disclosed, but reports of informal talks between the two San Francisco-based companies first surfaced in January. Sources later confirmed to Skift the price was $400 million-plus in cash and stock.
HotelTonight's last funding round from March 2017 estimated the value of the company to be $463 million, and the company said it became profitable in April 2016. Its investors include Accel Partners, Battery Ventures, US Venture Partners, GGV Capital, Coatue Management, and First Round Capital.
Airbnb's last funding round from March 2017 valued the company at $31 billion, and in November, the company reported "substantially more than $1 billion in revenue" amid talks that an initial public offering would be imminent. The company also said it was profitable for the second straight year in January.
In a press statement, Airbnb CEO and co-founder Brian Chesky said the purchase of HotelTonight was a key component of Airbnb's desire to become a comprehensive travel marketplace.
"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," Chesky said. "Working with the incredible team at HotelTonight, we will offer guests an unparalleled last-minute travel experience that provides unique, memorable hospitality on every trip, on any schedule, at any time."
HotelTonight co-founder and CEO Sam Shank said, "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. 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."
The HotelTonight app and website, Airbnb said in the same release, "will continue to operate as they do today" and once the deal closes, which is expected by June, HotelTonight CEO Sam Shank will remain as the lead of the company's boutique hotel category, reporting directly to Airbnb President of Homes Greg Greeley.
Two Ever-Evolving Travel Unicorns
When HotelTonight first debuted in 2010, it focused exclusively on enabling consumers to book last-minute, discounted hotel rooms on the same day of stay using its mobile app.
The app's debut led to the formation of a number of imitators worldwi
