The company announced Thursday it signed an agreement to acquire HotelTonight, a last-minute hotel booking startup.
HotelTonight's CEO Sam Shank And Last-Minute Booking
HotelTonight, founded in , is best known for its app and website that allow customers to book discounted hotel rooms — ranging from boutique hotels to large chains — on short notice. The acquisition will help Airbnb diversify its business as it gears up to go public. But the move could also spur backlash from the hotel industry, which has been a vocal adversary to Airbnb and has pushed for regulations on short-term rental businesses. Although HotelTonight lists excess inventory from some big hotel brands, those companies may take issue with the concept now that the app is part of Airbnb.
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In addition to booking hotels for the same day or next night, the service also lets users book up to a week in advance for stays up to 5 nights, or up to days in advance for stays up to 14 nights. Airbnb already allows boutique hotels and bed-and-breakfasts to list rooms on its platform, and in , it made it easier for boutique hotels to use the site. Airbnb subpoenaed by New York City for data on listings. Airbnb said Thursday that the boutique-hotel offerings are beneficial to its core home rental business.
HotelTonight
But sometimes, as a general business practice, companies like to notch higher valuations when the money is for the taking; a fresh round of new cash would set a new share price and accomplish that. And Airbnb has shown no signs of reeling in its ambitions, exploring costly business lines like air travel and becoming more acquisitive with purchases like HotelTonight. The company could also be cutting its new shareholders from HotelTonight a solid deal by offering them shares at a kind price — and HotelTonight shareholders would therefore be wise to accept the low valuation. Probably a good idea to have investors feeling happy about potential returns.
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HotelTonight's CEO Sam Shank And Last-Minute Booking | Benzinga
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