Airbnb to buy HotelTonight

Airbnb Inc. agreed to buy HotelTonight, its biggest acquisition yet, in a move to increase hotel listings on the site. In early 2017, Airbnb acquired Luxury Retreats for about $300 million, its largest purchase at the time.

San Francisco-based HotelTonight offers last-minute hotel bookings, seeking to tap into unused inventory largely in urban areas, and the app has been a travel-industry darling since it launched in 2010.

The acquisition extends Airbnb’s reach even further into the hotel industry, where it has been a disruptive force since its launch just over a decade ago. Airbnb transformed the travel sector by persuading millions of people to open up their homes to strangers. It became such a market force that mainstream travel and hotel companies like Booking Holdings Inc. have been furiously spending to offer more home listings on their own sites.

Airbnb began highlighting hotels more prominently on its website and introduced a loyalty program, taking a step further onto the turf of its rivals. It more than doubled the number of rooms available in properties categorized as boutique hotels, bed-and-breakfasts, and other hospitality venues like hostels and resorts.

Marriott to buy Starwood

Marriott International Inc. will buy Starwood Hotels and Resorts Worldwide Inc. for $12.2 Billion to create the world’s largest hotel chain with top brands including Sheraton, Ritz Carlton and the Autograph Collection.

The combined company will own or franchise more than 5,500 hotels with 11 Million rooms worldwide and give Marriott greater presence in markets such as Europe, Latin America, & Asia including India and China. Marriott currently has three-quarters of its rooms in the United States. Starwood, which also owns St. Regis and Aloft Hotel brands, gets nearly two thirds of its revenue from outside the country.

Starwood had essentially put itself up for sale in April, when it said it was considering strategic alternatives, taking about 14% off its stock up to Friday’s close. The company which had a market value of $12.67 Billion had reached out of InterContinental Hotels Group Plc. Wyndham Worldwide Corp and sovereign wealth funds for a possible deal.

Starwood shareholders will get 0.92 Marriott Class A share and $2 in cash for each share held. They will also get about $7.80 per share from the spinoff of Starwood timeshare business and subsequent merger with Interval Leisure Group Inc.