HotelTonight, a last-minute hotel booking application for providing discounted hotel accommodations throughout Europe, Australia, and America is now officially a part of Airbnb. Airbnb announced about its acquisition of HotelTonight which make the deal as the company’s largest M&A transaction till date. The company gears up for an Initial Public Offering (IPO) and will continue to expand its global footprint.
As per the reports, Airbnb initiated its propositions to take over HotelTonight a few months ago.The company finally confirmed its intentions to acquire HotelTonight in March. Apparently, the deal was priced at $400 million. However, Airbnb declined to comment about the deal’s size.
According to the deal, Sam Shank, HotelTonight’s Co-founder and Chief Executive Officer will be heading the company’s boutique hotel business. The boutique hotel category is one of the company’s latest units focused on scaling the company’s business beyond treehouses and outlandish homes.
“When we founded HotelTonight, we sought to reimagine the hotel booking experience to be more simple, fast and fun, and to better connect travellers with the world’s best boutique and independent hotels,” Shank said in a statement. “We are delighted to take this vision to new heights as part of Airbnb.”
The San Francisco-based company, HotelTonight was launched in 2010. Recently, the hotelbusiness was valued at $463 million after it raised $37 million in Series E funding in 2017.