San Francisco (March 22, 2017) -- HotelTonight, the leading mobile app for last-minute hotel bookings up to seven days out, today announced a Series E investment of $37 million led by Accel. The Series E funding round also attracted new investors RSC Capital, Founder’s Circle and Aspect Ventures, the latter of which brings Theresia Gouw back to HotelTonight, having previously served on its board when she was a partner at Accel. Additionally, existing investors Battery Ventures, US Venture Partners, GGV Capital, Coatue Management and First Round Capital also participated in this round.
Last-minute is becoming the new norm in travel with 62% of domestic hotel bookings made within seven days of arrival, according to Sojern, the world’s leading performance marketing platform in travel. Through product innovations such as HT GeoRates, geo-location-based discounts; HT Perks, the “simplest loyalty program yet,” launched this fall; and HT Pros, its in-app message-based concierge service recently expanded to 50 markets, HotelTonight has leveraged its mobile only positioning to delight business and leisure travelers alike with its 10-second booking process and average 17% discount versus the lowest published hotel rates.
HotelTonight will use the capital infusion for working capital as it continues its growth. Last year (2016) was a transformative year for HotelTonight, achieving profitability, more than $300 million in gross booking volume and over 100 percent year over year revenue growth. In 2017, the company inked a deal with the English Premier League’s Chelsea Football Club, one of the world’s leading sports brands, and will shortly unveil other strategic partnerships that weave HotelTonight into the fabric of spontaneous experiences.
“We’re excited to double down our support for HotelTonight,” said Brian O’Malley, partner at Accel. “This reflects our desire to materially increase our ownership in a stellar business. We feel fortunate that the team chose our offer versus the others on the table.”
“We’re delighted that Accel, one of our first investors, is strengthening their commitment to HotelTonight and equally pleased to welcome new investors,” said HotelTonight CEO and co-founder Sam Shank. “With this capital infusion, we will have tremendous operational flexibility to support our continued expansion as last-minute rapidly becomes the new paradigm in hotel booking.”
“I’m thrilled to have the opportunity to be an investor again with HotelTonight,” said Aspect Ventures Co-Founder, Theresia Gouw. “Sam and the team have built a fast-growing, profitable and innovative company that is a leader in mobile innovation for the travel industry.”
With more than 25,000 hotel partners in 1,700 cities and more than 30 countries, HotelTonight continues to expand its global footprint and team. The company is hiring.
HotelTonight is the leading mobile app for last-minute hotel bookings, available on iOS, Android and its mobile website. HotelTonight makes it remarkably easy to book great hotels at last-minute rates on your mobile device, for tonight, tomorrow or next week.
Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth. Atlassian, Braintree, Cloudera, DJI, Dropbox, Dropcam, Etsy, Facebook, Flipkart, Jet, Lookout Security, Qualtrics, Slack, Spotify, Supercell, and Vox Media are among the companies the firm has backed over the past 30 years. The firm seeks to understand entrepreneurs as individuals, appreciate their originality and play to their strengths. Because greatness doesn't have a stereotype.
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