HotelTonight, a mobile app that offers deep discounts on same-day hotel deals, has raised $9 million in new funding led by Battery Ventures with Accel Partners and First Round Capital participating. Accel Partners will take a seat on the startup’s board and Path founder Dave Morin will join as an advisor. This brings the company’s total funding to $13 million.
For background, HotelTonight offers Android and iOS apps that allow you to access steep discounts on hotel rooms. The service is focused around last-minute bookings, and is currently available in 28 cities.
Launched in January of this year, HotelTonight has been growing fast and has already seen 1 million downloads of its app. The startup plans to be in 35 markets by the end of the year, including Orange County, Portland, Salt Lake City and Santa Barbara. The startup will used to funding to expand to new mobile platforms, accelerate customer acquisition and expand into new international markets.
You can check out our test drive of HotelTonight here.
It seems like other players are recognizing the opportunity in the last-minute travel deal space. LivingSocial actually recently launched a similar service, called Instant Escapes. And we can expect more to join soon.