Why is Airbnb diversifying by acquiring hotel booking service HotelTonight?

Airbnb Is Acquiring HotelTonight Its Largest Acquisition to Date

"Working with the incredible team at HotelTonight", he continued, "we will offer guests an unparalleled last-minute travel experience that provides unique, memorable hospitality on every trip, on any schedule, at any time".

While Airbnb has more than 6 million private accommodations listings, it still lags behind rival Booking.com, which has a total of 28.3 million hotel and private accommodation listings.

"A big part of building an end-to-end travel platform is serving every guest, whether they plan their trip a year or a day in advance", Brian Chesky, Airbnb CEO and Head of Community, said in a statement. For now, he further noted that HotelTonight will continue to operate as a "stand-alone business".

Airbnb aims to use the acquisition to add more boutique hotels to it platform, providing its users with last-minute availability at these hotels when possible home rental opportunities may have already been booked.

Terms were not disclosed, but sources have told multiple national publications that HotelTonight will fetch close to its $450 million valuation as SF-based Airbnb swallows it whole.

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Airbnb introduced boutique hotels to its platform in early 2018, and according to TechCrunch, it has boasted quick growth, more than doubling the number of boutique hotels, B&B's, and resorts available previous year.

Airbnb's main business is sharing of individually owned properties but it has recently allowed bookings in boutique hotels, bed and breakfasts, and other kinds of accommodations, and the acquisition accelerates that trend. But it's a fair bet that Airbnb is sinking a significant sum into the acquisition.

HotelTonight's special sauce is how they list last-minute, bargain rates for unused luxury hotel stock. The company is also said to be on track to be profitable for the second consecutive year in 2019 before interest, taxes, depreciation and amortization.

Airbnb has acquired a last-minute boutique and independent hotel booking service, adding to its online lodging offerings for travelers.

Unlike most sky-high valued tech firms, Airbnb and HotelTonight do both now appear to be profitable operations.

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