HotelTonight is the only hotel booking application made for mobile from the ground up; it offers great pricing for last-minute deals at top hotels vetted personally by its staff.
In 2011, Battery—a firm with a long history of investing in hospitality technology–was intrigued to uncover HotelTonight, a mobile-only, hotel-booking application positioned to capture the “same-day bookings” slice (roughly 15% and growing) of the annual hotel-room market, worth $650 billion at the time. However, this unique travel business was buried inside a private, profitable company with no need or appetite for a venture investment.
- The Battery team worked to spin the group out of its parent, collaborating with the management team to define a new strategy and make a compelling case to the existing board for a free-standing company that could attack a ripe market opportunity.
- Battery led the financing effort, seeding the business and expanding the syndicate with new investors for both seed and series A financings.
- On the board, Battery worked side-by-side with the HotelTonight team on executive hiring, product development and financing. All of this helped drive strong global growth over the next several years.
In 2016, HotelTonight hit profitability and, at that time, could be found across the globe and was used by consumers worldwide. Airbnb acquired HotelTonight in March 2019.
The presented case study investment was made in particular economic and market conditions. There can be no assurance that Battery Venture would elect, or be able, to exploit similar opportunities in a similar manner under similar or different economic and market conditions. More generally, there can be no assurances that the Battery vehicles will have comparable investment opportunities in the future. No assumptions should be made that any investments identified above were profitable. It should not be assumed that recommendations made in the future will be profitable or comparable to the portfolio company described in this case study. For a full list of all Battery Ventures investments, please click here.
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