HotelTonight travel app books $45M Series D financing round
Hotel booking application HotelTonight has completed a $45 million Series D financing round, bringing the startup's total venture funding to $80.35 million since launching in 2011.
Technology-focused investment firm Coatue Management led the latest round, with expansion-stage venture firm GGV Capital also participating alongside existing investors Battery Ventures, Accel Partners, U.S. Venture Partners (USVP) and First Round Capital. San Francisco-based HotelTonight said the capital infusion will support plans to double its product, sales and support staff within the next year, also funding additional global offices and proposed enhancements to its on-demand booking platform.
HotelTonight's free application for Apple's (NASDAQ:AAPL) iOS and Google's (NASDAQ:GOOG) Android enables travelers to secure last-minute hotel rooms at discounted rates across close to 120 destinations in 12 countries, in turn helping its 3,000 worldwide partner properties fill unsold room inventory. Since HotelTonight closed its $23 million Series C round in June 2012, downloads of its mobile apps have doubled, eclipsing the 6.5 million mark.
HotelTonight co-founder and CEO Sam Shank told TechCrunch that the company is now experiencing significant growth in markets outside of major metropolitan locales, like smaller cities in the southeast United States. He added that while HotelTonight initially targeted consumers in the 25-to-35-year-old segment, its user demographics are now "very representative of online travelers generally."