Analysts believe the company needs to expand and diversify before going public Airbnb held talks to acquire Hotel Tonight, the San Francisco-based company that sells last-minute, unused hotel inventory through an app, according to the Wall Street Journal.
While talks between the two private companies have currently ?gone cold,? according to the story, the possibility illuminates how Airbnb, which is planning a public IPO, may be looking to boost growth potential and diversify, as a means of attracting investors. Purchasing a hotel booking site, or even buying hotels, analysts suggest, is an important step before going public, now likely to happen in 2020.
Hotel Tonight was previously valued at $463 million in March 2017, after a $131 million funding round, and is thought to be worth much more now. Airbnb, which was valued at $31 billion after its last funding round in March 2017, needs to broaden its offerings. Many of the lodging company?s recent moves, including Airbnb Plus, a luxury offering, an initiative to reach business travelers, and its Experiences program (which hasn?t lived up to expectations), have been efforts to mimic the services and standardization of traditional hotel chains.
The company already lists hotels?The Wall Street Journal also added that Airbnb announced that it expanded its listing of boutique hotels by 152 percent?and buildings customized for home-sharing sites (via initiatives like Niido), advising developers who are adding inventory t...