HotelTonight
HotelTonight is a mobile-first travel technology company specializing in last-minute hotel bookings, allowing users to find and reserve discounted accommodations for same-day or next-day stays through its app and website.[1][2] Founded in 2010 in San Francisco, California, by Sam Shank, Christopher Bailey, and Jared Simon, the company initially focused on addressing the challenge of unsold hotel inventory by offering flash sales and exclusive deals to spontaneous travelers.[3][4] Over the years, HotelTonight expanded its reach to thousands of hotels across major cities in the Americas, Europe, Asia, and Australia, earning high user ratings for its intuitive interface and real-time availability features, with 579,425 ratings averaging 4.9 out of 5 on the Apple App Store and 70,159 ratings averaging 4.3 out of 5 on Google Play (as of November 2025).[2][5][6] In March 2019, Airbnb announced its acquisition of HotelTonight for approximately $400 million—half in cash and half in pre-IPO stock—to bolster its offerings in traditional hotel bookings and compete more directly with platforms like Booking.com.[7][8] The deal closed in April 2019, after which HotelTonight's services were integrated into Airbnb's ecosystem, enabling users to earn credits toward future bookings and access a broader range of lodging options worldwide.[9] Today, headquartered at 888 Brannan Street in San Francisco, HotelTonight continues to operate as a key component of Airbnb's portfolio, emphasizing mobile convenience and last-minute travel deals.[10]History
Founding
HotelTonight was founded in December 2010 by Sam Shank, Jared Simon, and Chris Bailey in San Francisco, California. Shank served as CEO, Simon as COO, and Bailey as CTO and chief architect, bringing complementary expertise in product development, operations, and technology to the venture. The company emerged as a response to the untapped potential in mobile-enabled spontaneous travel, aiming to simplify last-minute hotel bookings through a dedicated app. This idea was particularly influenced by Shank's prior experiences in the travel technology sector, where he had founded and led TravelPost.com, a hotel reviews site acquired by SideStep in 2007, and subsequently DealBase.com, a travel deals search engine.[11][12] The founders recognized a market gap for real-time, mobile-first solutions catering to travelers making decisions on the go, especially as smartphone adoption surged around 2010. Prior platforms like TravelPost and DealBase had highlighted the demand for curated travel content and deals, but lacked seamless mobile integration for immediate bookings. HotelTonight sought to address this by focusing exclusively on same-day reservations, partnering directly with hotels to offer discounted rates on unsold inventory, thereby benefiting both impulsive travelers and properties seeking to fill vacancies. This approach was designed to create a streamlined user experience, limiting options to three curated categories—basic, luxe, and hip—to reduce decision fatigue.[13][14] The service launched in January 2011 as an iPhone app available in the United States, initially targeting major cities with a beta version that emphasized same-day hotel deals at up to 70% off regular rates. Early operations were lean, with the app bootstrapped by the founders before securing initial funding. In its first month, HotelTonight sold only 55 rooms, many booked by the team themselves to demonstrate viability.[15][16] One of the primary early challenges was establishing supplier relationships with hotels to secure real-time inventory and dynamic pricing. Sales managers conducted manual, often stressful negotiations to activate deals, as hotels were initially skeptical of a mobile-only platform and the risks of last-minute discounting. This hands-on process was necessary to build trust and demonstrate value, gradually expanding the network of participating properties and laying the groundwork for scalable operations.[17]Early Growth
Following its beta launch in late 2010 and official iOS app release in January 2011, HotelTonight experienced rapid user adoption, reaching 600,000 iOS downloads by mid-2011. The company expanded its Android app availability in July 2011, coinciding with service rollout to 18 major U.S. cities including New York, Los Angeles, Chicago, and San Francisco. This mobile-only approach, focused on curated last-minute deals at boutique and independent hotels, drove quick market penetration as travelers embraced the convenience of same-day bookings, with downloads surpassing 2 million by June 2012 and 3 million by August 2012.[18][19][20] By early 2012, HotelTonight had established efficient operations centered on a lean team and direct partnerships with over 1,000 hotels across key U.S. markets, enabling scalable growth without heavy reliance on traditional desktop channels. The company's emphasis on high-quality, vetted properties and flash-sale-style pricing contributed to strong user retention and word-of-mouth promotion. Initial seed funding supported this expansion, allowing the startup to prioritize product refinement and city-by-city rollout in high-demand areas like Boston, Miami, and Seattle. Marketing efforts highlighted the urgency of "tonight-only" deals through targeted app notifications and social media campaigns, positioning HotelTonight as the go-to solution for spontaneous travel.[21][22] International growth began in April 2012 with entry into Canada, followed by Europe in December 2012, where the app launched in cities such as Paris, London, and Brussels. By 2013, expansion accelerated across additional European markets, including Spain and Italy, while maintaining a focus on boutique and independent hotels to differentiate from broader booking platforms. This period also saw key internal milestones, including headcount doubling to over 100 employees by mid-2013 to support operations, and office growth in San Francisco to accommodate the scaling team. These developments solidified HotelTonight's position in the last-minute lodging niche, with revenue projected to grow 300% year-over-year in 2013.[23][24][25][22]Acquisition by Airbnb
On March 7, 2019, Airbnb announced an agreement to acquire HotelTonight, a mobile app specializing in last-minute hotel bookings.[26] The deal, which closed on April 15, 2019, was valued at approximately $400 million, with roughly half paid in cash and the other half in pre-IPO Airbnb stock.[8] This transaction marked Airbnb's strategic expansion into the traditional hotel sector, aiming to diversify beyond its core home-sharing model.[27] The acquisition aligned with Airbnb's broader goal of developing an end-to-end travel platform that caters to diverse traveler needs.[26] By integrating HotelTonight's expertise in boutique and last-minute hotel reservations—where Airbnb's boutique hotel bookings had tripled from 2017 to 2018—Airbnb sought to complement its home-sharing offerings and attract new users who might otherwise overlook homestays.[26] Nearly 90% of guests who first booked a hotel room on Airbnb and returned for a second trip then booked a home, demonstrating the complementary nature of the services.[26] This move addressed Airbnb's push into hotels to meet travelers "where they are," enhancing its portfolio amid growing demand for flexible accommodations.[26] Post-acquisition, HotelTonight's leadership structure remained intact to ensure stability. Co-founder and CEO Sam Shank continued in his role, reporting directly to Greg Greeley, Airbnb's President of Homes, while leading the new boutique hotel category within the company.[26] Operationally, the HotelTonight app and website operated independently without immediate changes, preserving its user experience and inventory partnerships.[26] No major layoffs were announced in connection with the deal, allowing the team to focus on integration planning.[27]Funding
Investment Rounds
HotelTonight raised approximately $117 million in venture funding across 11 rounds between 2011 and 2018, prior to its acquisition by Airbnb.[28] The company's funding journey began shortly after its founding in 2010 and supported its growth in the mobile travel booking sector. The initial Series A round occurred on May 10, 2011, raising $3.25 million, led by Battery Ventures with participation from Accel Partners and First Round Capital.[29][13] This was followed by a Series B round on November 18, 2011, securing $9 million led by Battery Ventures and Accel Partners.[30] In June 2012, HotelTonight closed a $23 million Series C round led by U.S. Venture Partners, with continued support from existing investors including Accel Partners and Battery Ventures.[19] The Series D funding came in September 2013, raising $45 million led by Coatue Management, alongside GGV Capital and prior backers, bringing the cumulative total to over $80 million at that point.[31][32] The final major round was a $37 million Series E in March 2017, led by Accel Partners, which increased total funding to about $117 million.[33][34]| Round | Date | Amount Raised | Lead Investor(s) |
|---|---|---|---|
| Series A | May 10, 2011 | $3.25 million | Battery Ventures |
| Series B | November 18, 2011 | $9 million | Battery Ventures, Accel Partners |
| Series C | June 5, 2012 | $23 million | U.S. Venture Partners |
| Series D | September 5, 2013 | $45 million | Coatue Management |
| Series E | March 22, 2017 | $37 million | Accel Partners |