Airbnb Is Buying HotelTonight: Here’s What That Means
Photo Credit: HotelTonight advertisements on the exterior of Madison Square Garden in New York City. The company is being acquired by Airbnb. Skift
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 pu
