Friday, 6 September 2013

HotelTonight Raises $45M in Series D Financing

HotelTonight was launched in 2011 to provide easy mobile booking of same-day unsold hotel inventory. For consumers, HotelTonight offers incredible convenience and amazing value at quality hotels. For hotels, HotelTonight is a marketplace to fill last-minute rooms that would otherwise remain empty. HotelTonight is currently available in over 100 destinations across the globe.

Based in San Francisco, California with a London-based European office, HotelTonight is backed by some of the top venture firms and travel-industry pioneers in the world. · HotelTonight, the on-demand mobile hotel booking app, today announced that it has secured $45 million in Series D financing led by Coatue Management, a leading technology-focused investment firm. · GGV Capital, an expansion stage venture capital firm focused on the United States and China, also participated in this round. With more than 13 years investing across the two largest mobile economies in the world, GGV’s experience is perfectly aligned with HotelTonight’s global growth aspirations. · Existing investors Battery Ventures, Accel Partners, U.S. Venture Partners (USVP), and First Round Capital also contributed to this round. Since launching in 2011, HotelTonight has raised $80.35 million in total venture funding. ·

 Historically focused on the public markets, Coatue’s investment in HotelTonight is the first deal it has made as a lead investor from its new $375 million fund dedicated to investing in private technology companies. · HotelTonight will use the funding to support new growth initiatives, including: o Doubling its product, sales and support staff in the next year, as well as funding additional global offices. Demonstrated its tremendous international potential by opening its European headquarters in London; quickly establishing itself as the dominant same-day hotel booking app across Europe in terms of both consumers and bookings. o Expanding its domestic and overseas presence and hotel relationships with a goal to be geographically ubiquitous. o

 Further enhancing the HotelTonight on-demand booking platform, adding unique features designed exclusively for the mobile traveler and the real-time needs of its hotel partners. · Every member of HotelTonight team, from the company’s engineers to its hotel experts to its 24/7 support team, is laser-focused on building the best on-demand hotel booking service. Being a mobile-native business has allowed HotelTonight to design an app that is optimized for customers in need of a hotel room right now, without getting distracted by extraneous features and options. ·

 Since closing its Series C round in early June 2012, HotelTonight has demonstrated momentum across all facets of its business, specifically: o Doubled downloads across its suite of mobile apps, topping over 6.5 million. o Partnered with thousands of new hotels worldwide for a current total of over 3,000 partner properties. o  Tripled its reach geographically, currently offering its on-demand booking app to millions of customers in 12 countries and nearly 120 destinations. o Doubled its headcount with plans for aggressive recruitment in 2013 and beyond. ·

 By delighting users with a beautiful product that's easy and natural for anyone to use, HotelTonight is breathing new life into the travel industry and fundamentally changing the way people think about booking hotel stays. · For hoteliers, the advantages of HotelTonight are twofold. From a distribution standpoint, HotelTonight is a flexible, targeted, efficient way to sell rooms that would have otherwise gone empty with guests who otherwise would not have booked their property. From a marketing perspective, HotelTonight is a low-cost way to get in front of a highly desirable customer demographic. With a worldwide audience of over 6 million users, the app exposes hotels to new, tech-savvy customers without cannibalizing business from their loyal guests. ·

 Quotes: Sam Shank, Co-Founder and CEO, HotelTonight “People have been quick to embrace HotelTonight, and we truly believe that everyone, everywhere can benefit from having our app at their fingertips. We’ve made travel significantly easier and more fun for the millions of people who have downloaded our apps across North America and Europe, and we’ve already seen a shift in consumer behavior and a change in the way people think about booking travel. But we won’t slow down until everyone around the world is able to experience the pleasure of truly seamless on-demand booking through HotelTonight. We’re just getting started.”

Jared Simon, Co-Founder and COO, HotelTonight: “We are beyond excited to add Coatue and GGV Capital to HotelTonight’s group of top-notch investors. We are incredibly fortunate to have been able to work with a world class group of investors since inception, and the deep public company and global operational expertise Coatue and GGV bring to our team fit perfectly with our corporate and business goals.” Daniel Senft, Senior Managing Director at Coatue Management, L.L.C.: “The explosion of the mobile Internet creates a once-in-a-decade opportunity to build the next big global travel franchise. HotelTonight is at the leading edge of this mobile disruption with a differentiated model that emphasizes the unique experience and functionality of the mobile environment. We are proud to invest behind the innovative and visionary management team of HotelTonight.”

 Jeff Richards, Partner at GGV Capital: "The shift to mobile represents another massive opportunity for innovation in the $400 billion online travel sector. Capitalizing on this shift, HotelTonight has come on the scene and built a very meaningful brand in a short amount of time. We're thrilled to be investing early in this industry shift to mobile, and believe HotelTonight has a tremendous opportunity to drive adoption on a global basis."