Denver-based travel technology company Hotel Engine has announced a $140 million Series C funding round led by Permira Growth Opportunities II, a fund advised by global private equity firm Permira. This investment values the company at a whopping $2.1 billion, a big increase from its previous valuation of $1.3 billion in 2021.
The company, founded in 2015, has developed a platform that connects business travelers with a network of over 750,000 hotels, 300 airlines, and 40 rental car companies. Hotel Engine differentiates itself by offering a contract-free model, eliminating minimum spend requirements and agent-assist fees often associated with traditional managed travel services.
The platform provides businesses with features such as consolidated invoices, 24/7 customer support, and travel insurance. It also offers a free Partner Hub software platform for travel providers, enabling them to manage reservations, create marketing campaigns, and offer special deals to business travelers.
Hotel Engine reports being profitable and experiencing 70% year-over-year revenue growth. The company projects booking over 10 million room nights this year.
This latest funding round will support Engine’s expansion beyond hotel bookings. The company plans to launch flight and rental car bookings on its platform in October, aiming to become a comprehensive travel management solution for businesses. To reflect this expanded focus, the company will rebrand as “Engine.”
In a press statement, Elia Wallen, CEO of Hotel Engine, stated, “Hotel bookings will always be in our DNA, but we’re out to transform the entire travel experience. We want to become the engine of business travel. Our new name will reflect that, and with Permira’s latest investment, we’ll be better positioned than ever to turn our ambitions into reality.”
This investment in Hotel Engine reflects the broader recovery of the business travel sector following the pandemic-induced slump. Companies offering services that streamline travel management and enhance efficiency are experiencing increased demand as businesses resume travel activities.
The funding also highlights the rebounding venture capital and private equity markets, which experienced a downturn due to rising interest rates. Investors are increasingly seeking opportunities in companies with strong growth potential and a proven track record of success, like Hotel Engine.
The company’s expansion into flight and rental car bookings positions it to compete more directly with established travel management companies. However, Engine’s success will depend on its ability to effectively integrate these new offerings into its platform, maintain its customer-centric approach, and navigate the complexities of the broader travel market.
The rebranding to “Engine” signifies the company’s ambition to become a comprehensive travel management solution, powering the entire business travel experience. Whether Engine can achieve this ambitious goal and solidify its position as a leader in the evolving travel technology landscape remains to be seen.