Lodging is quite an issue especially when you accidentally plan your journey. Hotel Tonight is an app which focuses on offering last-minute hotel booking deals at affordable prices.
Hotel Tonight is based in San Fransisco which selects unsold inventory from hotels and offers them at discounted prices. Founded by Sam Shank, the app has 15 million+ users and has raised more than $115 million in funding.
Airbnb has announced that it will be acquiring the last-minute hotel booking app Hotel Tonight for an undisclosed amount. The deal is expected to be anywhere around $465 million, which is the biggest ever acquisition by Airbnb. This sets Airbnb in direct competition with travel-industry moguls like Expedia And Agoda owned by Priceline Group.
More About Airbnb And The Deal
Airbnb is a home-rental startup which acts as a mediator between guests and hosts. Hosts can register their property for accomodation and guests can book them through the platform. With this latest acquisition, Airbnb plans to move into proprietary hotel-booking space.
Terms of the deal are not disclosed. Hotel Tonight app & website will continue to operate independently. Airbnb recently launched Airbnb Plus which offers high-tier hotel like accomodation services. Soon, its expected to launch a luxury tier named Airbnb Beyond which will be provide higher-end accomodations.
Airbnb is currently valued at $31 billion and planning for an IPO this year. In a statement, Airbnb CEO Brian Chesky emphasized the acquisition as “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“.
Earlier, some people shied away from renting a stranger’s home. Hotel Tonight will surely give an edge to Airbnb services as they can now offer both hotel rooms as well as private hosts through their platform.