Airbnb makes its biggest acquisition yet as it moves to increase hotel listings on its site. The company has agreed to buy HotelTonight, a provider of last-minute, boutique options for a night’s stay. It does so ahead of an eventual initial public offering. Airbnb hasn’t disclosed the financial terms of the deal, but according to a person “familiar with the matter” said its price is close to HotelTonight’s last private valuation, which is at US$463 million. Airbnb’s last big purchase was Luxury Retreats, which it bought for $300 million.
The move has Airbnb encroaching further into the hotel industry and puts them into the position of being what Bloomberg calls the Amazon for travel or a “one-stop-shop for holiday-goers.” HotelTonight’s app and site will continue to operate independently of Airbnb. But the company might integrate its listings on its site in the future. And once the acquisition is complete, HotelTonight’s founder will report to Airbnb’s President of Homes, Greg Greeley.