Reuters SAN FRANCISCO, Sept 5
Technology hedge fund Coatue Management has led a $45 million funding round into accommodation service HotelTonight, the latest example of the burgeoning interest among hedge funds in Silicon Valley start-ups.
HotelTonight, which allows travelers using smartphones to book rooms at the last minute, plans to use the cash to further expand around the world, including Asia. It announced the news in a press release.
The founders aim to boost discretionary hotel stays, in which a guest did not necessarily need to stay in a hotel. That market currently represents just 15 percent of the hotel market, said HotelTonight co-founder Sam Shenk in an interview Tuesday, but he believes it could rise to about 25 percent over the next few years.
“If we could make it very easy and convenient to book a hotel, we could generate demand,” Shenk said, describing his thinking when founding the company in 2010.