15 Key Moments During Sam Shank's Days at Airbnb-Owned HotelTonight
25.08.2023 - 14:46
/ skift.com
/ Rashaad Jorden
/ Barry Sternlicht
HotelTonight co-founder and CEO Sam Shank, who steered the hotel booking app even after it was acquired by Airbnb in 2019, recently announced he would be leaving the short-term rental giant. Shank wrote on his LinkedIn account that he would take some time before making plans for a future outside of the travel industry.
So Skift is looking back at Shank’s time at the helm of HotelTonight, which he co-founded in 2010, through articles documenting 15 key moments in the San Francisco-based company’s history, including securing $3.25 million in funding, launching service in London, expanding to a 100-day booking window, debuting a desktop service, and being acquired by Airbnb.
London represented the first market HotelTonight served outside of the U.S. and Canada. And Shank said the company had plans to expand elsewhere in the United Kingdom as well as other destinations in Western Europe.
HotelTonight announced in December 2012 it was offering same-day hotel bookings in Paris, Nice, Brussels, Mexico City and Acapulco. That represented the company’s first foray in continental Europe after launching in UK that June. HotelTonight also announced it would make new versions of its app available in French, German, Italian and Spanish.
HotelTonight’s landing $45 million in funding was another sign of growing investor interest in mobile booking. The company had raised $80 million up to that point. Shank, who described that round as very validating, said HotelTonight planned to double to staff to around 200 employees over the next year as well expand further in the U.S. and internationally.
Starwood founder Barry Sternlicht becoming an investor in HotelTonight served as a sign of the hotel app’s coming of age. Shank didn’t disclose how much Sternlicht invested in HotelTonight, but said it was a significant amount. Shank added that Sternlicht would provide HotelTonight with advice on the hotel booking experience as well as matters pertaining to the app’s operations.
Despite possibly having a valuation of $320 million, HotelTonight faced challenges approaching its fifth anniversary in December 2015. Although a majority of hoteliers interviewed by Skift complimented the company on its ability to efficiently sell rooms at the last-minute, others noted HotelTonight still needed to improve amid competition from Booking.com and other major online travel agencies.
Although Shank said HotelTonight had grown 100 percent in booking volume in 2015, the company announced in November of that year it was laying off 37 employees, roughly 20 percent of its workforce. Shank described the decision as agonizing, but said it was a necessary step for the company in the long term.
HotelTonight put itself up for sale in December 2015