Airbnb to buy HotelTonight, marking company’s biggest acquisition

The startup is expanding its offerings as it prepares for an IPO

Mar.March 07, 2019 06:00 PM

From left: Airbnb CEO Brian Chesky and HotelTonight CEO Sam Shank (Credit: Getty Images)

Airbnb is expanding its portfolio of lodging services with its planned acquisition of HotelTonight.

The deal, which is reported to be valued around $465 million, would be Airbnb’s largest acquisition to date, according to the New York Times. That figure is reportedly close to Hotel Tonight’s most recent private valuation.

The purchase of HotelTonight, which offers last-minute hotel bookings to customers, will bolster Airbnb’s competitive stance against Expedia and Booking Holdings, the parent of and Priceline.

Airbnb, which is now valued at $31 billion, has increasingly diversified its platform as it gears up for an initial public offering. The company has been looking to attract a wider range of travelers by listing boutique and luxury hotels.

The short-term holiday rental platform has been fending off an effort from local politicians in New York City to crack down on its presence. The city has conducted multiple raids in buildings across the city where apartments are being leased without a host present.

Led by Sam Shank, HotelTonight was founded in 2010 and has since raised $127 million in venture capital funding. In 2016, the company said it would go public, but those plans never materialized. [NYT]David Jeans

Related Articles

Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

What will proptech look like in 2019 and beyond?

From left: RealPlus' Eric Gordon, Corcoran's Pam Liebman, Halstead's Diane Ramirez, Douglas Elliman's Howard Lorber and Brown Harris Stevens' Bess Freedman (Credit: Eric Gordon by Emily Assiran, Getty Images, Halstead, BHS, iStock)

Terra sells part of RealPlus stake to Corcoran and Elliman

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M

SoftBank taps former Sprint CEO to fix WeWork, this borough could house Trump’s presidential library: Daily Digest

Brookfield Property Group CEO Brian Kingston and 652 11th Avenue (Credit: Google Maps)

Brookfield drops $83M on Hell’s Kitchen hotel