The round was led by Battery Ventures, with participation from Accel Partners, First Round Capital, Rich Barton, Erik Blachford, Brad Gerstner and Hugh Crean.
The company intends to use the new funds to expand the product to new mobile platforms (HotelTonight is currently available as a free download from the App Store for the iPhone, iPod touch and iPad), add new functionality, support marketing campaigns and expand into new markets.
Launched in January 2011, Hotel Tonight deals are currently available in New York, San Francisco, Los Angeles, Chicago, Boston, Miami, Seattle, Philadelphia, Dallas, Denver, Atlanta and Washington, DC.
In conjunction with the funding, Brian O’Malley, Partner at Battery Ventures, will join HotelTonight’s Board of Directors.
Founded in 2010 by CEO Sam Shank, the company has already established relationships with nearly 200 hotels across the country including Rosewood Mansion on Turtle Creek in Dallas, The Talbott Hotel in Chicago and Ellis Hotel in Atlanta.