HotelTonight, after rough patch, plans to go public

Los Angeles /
Aug.August 25, 2016 10:00 AM

From the New York website: Hotel booking startup HotelTonight is going public.

CEO Sam Shank hopes to launch an initial public offering by late 2017, Bloomberg reported. The company was last valued in 2013 at $300 million, but some analysts say that its bookings and growth rate could make for a $400 to $500 million IPO.

The past year has been a tough one for the startup. Faced with tight-fisted venture capitalists who balked at the company’s finances, including the $2.5 million spent each month, the startup made some major changes to become profitable. The company has cut staff by 20 percent and reduced annual infrastructure costs by 40 percent, or $500,000, over the past 12 months.

The company reports that it became profitable in April and took in $25 million in bookings per month of the last quarter. The following month, Shank announced plans to go public.

“Once we got to profitability it became clear that’s our next path,” he said.

Still, some analysts are skeptical that the company can make a substantial mark among competition like Priceline and Expedia, which each take in more than $55 million in gross bookings per year. [Bloomberg]  — Kathryn Brenzel


Related Articles

arrow_forward_ios
Renderings of the project (The Harper on Sunset)
Hotel, apartment complex planned for northeast end of West Hollywood’s Sunset Strip
Hotel, apartment complex planned for northeast end of West Hollywood’s Sunset Strip
The Chateau Marmont (Getty) and protest signs (Unite Here Local 11)
Chateau Marmont workers say iconic West Hollywood hotel misused rescue funds
Chateau Marmont workers say iconic West Hollywood hotel misused rescue funds
Stockdale Capital Partners' Co-Founders Shawn and Steven Yari with 1740 Ocean Avenue (Google Maps)
JW Marriott Santa Monica sells for $75M
JW Marriott Santa Monica sells for $75M
Sheraton Pasadena and the Queen Mary (iStock)
Embattled REIT seeks to auction SoCal hotels, Queen Mary lease
Embattled REIT seeks to auction SoCal hotels, Queen Mary lease
Photo illustration of Gov. Gavin Newsom and the Holiday Inn in Long Beach (Getty, Google Maps)
California spent $850M on inns for homeless
California spent $850M on inns for homeless
The Georgian at 1415 Ocean Avenue and The Viceroy at 9291 Burton Way (Google Maps)
An inhospitable market? LA’s biggest hotel sales plunge in 2020
An inhospitable market? LA’s biggest hotel sales plunge in 2020
Slate Property Group co-founder Martin Nussbaum and the Hotel Cecil (Slate, Google Maps)
Developer snags $30M loan for Hotel Cecil conversion
Developer snags $30M loan for Hotel Cecil conversion
Justin Myers, Vice President of Atlas Hospitality
Study: California hotel construction outlook is bleak
Study: California hotel construction outlook is bleak
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...