Travel startup Hotel Engine closes $140 million in funding at a $2.1 billion valuation

It’s been five years since we last featured Hotel Engine, a Denver-based travel startup that connects businesses with lodging partners and simplifies business travel accommodations. At the time, the company secured $16 million in Series A funding after four years of self-funded growth. A lot has changed since then and Hotel Engine is now a unicorn startup.

Today, Hotel Engine announced it has raised $140 million in a funding round led by a fund advised by private equity firm Permira, bringing the startup’s valuation to $2.1 billion. The Series C round follows a $1.3 billion valuation during its Series B in November 2021, also led by Permira Growth Opportunities II.

The new capital will support ongoing product development, including the addition of flight and rental car bookings to its platform, expected to launch in October.

In line with these changes, the company is rebranding itself as “Engine.”

Over the past years, business travel has seen a resurgence after a pandemic-induced decline, and companies that simplify booking and logistics are experiencing increased demand. Venture capital and private equity funding are also showing signs of recovery after a challenging period due to prolonged higher interest rates.

Hotel Engine continues to focus on making business travel more efficient by offering software that saves companies time and money without requiring contracts, agent-assist fees, or minimum spends.

Founded in 2015, Hotel Engine has been reshaping the business travel industry with its free, private hotel booking and management platform. The startup provides benefits such as consolidated invoices, 24/7 customer support, and insurance to business travelers.

Leveraging a vast network of partners and smart technology, Hotel Engine delivers tailored solutions to meet various business needs. With access to over 200,000 properties worldwide, the platform offers up to 60% off publicly available hotel rates for both private and public sector travelers. Notable clients include PepsiCo, NBCUniversal, and Whole Foods Market.

The company reports profitability, with a 70% year-over-year revenue growth, and is on track to book more than 10 million room nights this year. Its network includes over 750,000 hotels, 300 airlines, and 40 rental car companies.