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Airbnb buys HotelTonight, pushes further into hotel territory

Airbnb announced Thursday that it will acquire hotel booking site HotelTonight, edging even further into more traditional hotel listings and adding yet more inventory to its platform.

The company has already indicated an interest in the more traditional hotel world boutique hotels and luxury properties over the past several years as it faces increasing competition from online travel agencies and hotels. The company now calls itself an “end-to-end travel platform.”

Airbnb did not disclose the price or when the deal is expected to close. HotelTonight was last valued at US$463 million in the private market, according to CNBC

“Over the past few years, we’ve seen an increasing number of hoteliers take inspiration from our Home hosts, making their boutique hotels more unique with custom touches. Last year, we announced our intent to make it easier for these boutique hotels to list on our platform,” the company said in a press release. “We’ve had an overwhelming response from hoteliers with strong ties to their local communities who want to offer truly personal hospitality: in 2018, we more than doubled the number of rooms available on Airbnb in properties that hosts categorized as boutique hotels, bed and breakfasts, and other hospitality venues like hostels and resorts.” 

American Hotel & Lodging Association (AHLA) CEO Chip Rogers released this statement on the acquisition: 

“Airbnb’s latest scheme is just further proof the company is playing in the hotel space while evading industry regulations. It’s also likely a realization by Airbnb that their current business model is flawed with its reliance on income from illegal activity by commercial investors using their site. We’re not surprised by this move given major cities, including New York, Boston, Los Angeles and Washington, D.C. just passed strong short-term rental laws last year to rein in Airbnb.” 

“If Airbnb wants to enter the hotel business, then it needs to do so on a level playing field and be regulated, taxed and subject to the same safety compliances and oversight that law-abiding hotel companies adhere to each and every day.”

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