HOTELMARKETING.COM

HotelTonight books $23M in funding as it faces increased competition

June 06, 2012 | Online Travel

Last-minute hotel booking is proving to be big business for HotelTonight, a one year-old San Francisco-based startup that just closed $23 million in additional funding. The new money should come in handy as the company fights off competition from travel industry incumbents such as Booking.com which have been quick to copy the same-night-only deal model.

Launched in 2011, HotelTonight makes elegant and easy mobile-booking applications for the iPhone, iPad, and Android devices that surface the top three same-night hotel deals in a city each day at noon local time. The applications, which are light on choice but heavy on convenience, are currently available to customers in more than 40 markets across the U.S. and Canada, and have been downloaded more than two million times.

The young startup’s sizable $23 million round was led by U.S. Venture Partners (USVP) with participation from Accel Partners, Battery Ventures, and First Round Capital. The funding will be used to hire aggressively, improve the mobile products, and ramp up international efforts, the company said.

“Our goal at HotelTonight is to revolutionize the way people shop for travel,” HotelTonight CEO Sam Shank said in a statement. “By building apps that allow users to easily book same-day hotel stays at great properties at incredible prices, we’re delivering on that mission.”

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