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HotelOnline

Our story

From five apartments in Syokimau to 6,000+ hotels across Africa

HotelOnline began with five leased apartments near Jomo Kenyatta International Airport, a limited budget and a simple idea: a small African hotel could compete with the biggest names if people could find it, book it and pay for it online.

Those five apartments pioneered the overnight rental model in East Africa and became the most-booked property on Booking.com in Nairobi. The idea then led to Savanna Sunrise, HotelOnline, and eventually to a hospitality technology company serving more than 6,000 hotels across 27 African countries.

The road between those two points was anything but straight. It included hard pivots, deals that fell apart, 11 mergers and acquisitions, a landmark African equity crowdfunding round, a pandemic that brought global travel to a standstill, and investment from one of the world's largest travel technology groups.

This is how it happened.

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Håvar Bauck and Endre Opdal, founders of HotelOnline
Håvar Bauck and Endre Opdal, founders of HotelOnline
6,000+
Hotels and hospitality businesses
27
African countries
11
Mergers and acquisitions
90+
Shareholders from 16 countries

2013 to 2014

It started with an obvious gap

Back in 2013, HotelOnline's founders, Håvar Bauck and Endre Opdal, noticed something strange about Nairobi.

Jomo Kenyatta International Airport was already one of Africa's busiest aviation hubs, but affordable accommodation close to it was hard to find. The few nearby options were expensive, and reaching hotels elsewhere in Nairobi could mean a long drive through traffic.

At the same time, most independent hotels in the city were still almost invisible online. Walk-in guests, travel agents and commission deals with taxi drivers drove the market. Booking.com and Expedia were there, but local hotels had barely begun to use them.

Håvar and Endre did not have the money to build a hotel. So they tested the idea with what they could afford. They leased and furnished five modest apartments in Five Star Estate in Syokimau, offered free airport transfers, and marketed the apartments as Nairobi Airport Hotel. In doing so, they pioneered the overnight rental model in East Africa, years before short-stay apartments became a mainstream category.

They listed the rooms on Booking.com and Expedia and launched a website with direct online booking. Some people in the industry told them online marketing would never replace the taxi drivers who delivered guests to hotel receptions.

They kept going anyway.

The response was almost immediate. The apartments filled up. Within two months, the small operation was fully booked. In 2014, the five apartments became the most-booked property on Booking.com in Nairobi. They were attracting bookings at a level normally associated with some of the city's largest international hotels.

That changed the question. Instead of asking how many more apartments they could lease, the founders began asking how many hotels could use the same formula.

If five apartments could perform like this online, what could the same approach do for thousands of independent African hotels?

2014 to 2015

The bigger opportunity was not owning hotels

The success of Nairobi Airport Hotel exposed a much larger gap.

Across Africa, good independent hotels were losing business because travellers could not find them online, their rates were not managed properly, and their rooms were missing from the channels where guests were already searching. The hotels existed. The demand existed. The connection between them was weak.

In September 2014, Håvar and Endre launched Savanna Sunrise. The name was a nod to the optimism of the Africa Rising era, and the company was incorporated in Dubai with the intention of building across several markets from the start.

The first plan was broad: manage and market smaller hotels. Then a long hotel-management negotiation in Uganda collapsed. The setback forced a useful decision. Full hotel management was slow, complicated and difficult to scale. Online distribution, digital marketing and commercial support could be rolled out much faster.

Savanna Sunrise narrowed its focus, and the business took off.

By the end of 2014, the company was working with 15 hotels. By the end of 2015, that number had grown to 130, with monthly room sales approaching USD 80,000. Kenya and Uganda were built in parallel, followed by Rwanda, Ethiopia, Eritrea and other markets.

The model was practical. Savanna Sunrise helped hotels create stronger online profiles, secure good photography, connect to major booking channels, manage reservations and remain available to guests around the clock. A 24-hour customer service operation became a major advantage at a time when many independent hotels could not respond quickly to a booking request from another time zone.

The first office was the smallest guest room at Eden Gardens, Endre's guesthouse in Lavington. There was nothing glamorous about it. It was close to the hotels, close to the work and cheap enough for a young company that was putting almost everything back into growth.

Endre was already working on the company full-time. At the end of 2015, Håvar followed, committing to the new business full-time.

The side venture was now the main event.

2016

Technology gave the model room to scale

Marketing could bring hotels online, but growth would eventually depend on the systems behind the bookings.

In early 2016, Savanna Sunrise strengthened its relationship with Indian hospitality software company eZee Technosys. Its technology gave the team a stronger base for property management, channel distribution, reservations and online sales. It also began a relationship that would shape HotelOnline years later in a way nobody could have predicted.

HotelOnline team visiting eZee Technosys in India in 2016
A genuine HotelOnline image from the 2016 eZee Technosys relationship.

The company was growing quickly, but the numbers were still tight. A planned USD 600,000 investment stalled at the last moment after the team had already hired for expansion. One third of the staff had to be let go.

It was a painful lesson in building ahead of money that had not yet arrived. It also made the company more disciplined about due diligence, costs and the difference between a promising conversation and cash in the bank.

HotelOnline would need that discipline soon.

2017

HotelOnline is born

In 2017, Savanna Sunrise entered talks for a major cross-border merger with a competitor operating in Nigeria. The proposed deal attracted plenty of attention, but it did not survive due diligence.

The process still revealed a better opportunity. The Nigerian company had not fully consolidated with the Polish technology business behind it. Savanna Sunrise opened a separate discussion with that company and completed a smaller, cleaner transaction.

The Polish company was called Hotel Online Sp. z o.o. The combined group needed one name that could travel across markets and explain the business in an instant.

HotelOnline was the obvious choice.

The company then moved into Nigeria, one of Africa's largest and most competitive travel markets. A group of Nigerian investors put in USD 75,000 and, more importantly, helped the company understand the market, build local relationships and recruit the right people. The move turned an East African startup into a genuinely pan-African business.

The name changed in 2017. The problem we were solving did not: help African hotels become easier to find, easier to book and more profitable.

2017

A funding round built one conversation at a time

HotelOnline needed capital, but the founders did not want to wait indefinitely for one large investor to make the decision.

In October 2017, the company launched what was widely reported as Africa's first successful equity crowdfunding round. The campaign was built from the ground up. The team assembled a contact list of more than 12,000 people, produced a video filmed across Kenya, Uganda, Nigeria, Poland and Norway, and took the story directly to its network.

There was no single giant cheque. The round was built through dozens of conversations and many smaller commitments.

HotelOnline closed exactly on its target of USD 250,000. Over time, its shareholder community would grow to more than 90 investors from 16 countries, including entrepreneurs, hotel industry leaders and investors with deep experience in African and global technology businesses.

The round brought more than money. It gave HotelOnline a wider network, stronger visibility and a group of shareholders who would prove critical when the company faced its hardest test.

2018 to 2019

Growth through combination

HotelOnline learned early that expansion did not always have to begin with a blank sheet of paper. Sometimes the fastest route into a new market, product or team was to bring in a company that had already built something valuable.

In 2018, HotelOnline acquired or merged with several businesses, including the Cityhotels online travel platform, the award-winning Teranga Solutions in Senegal and the Norwegian holiday rental business Solferie. Teranga added technology, talent and a foothold in Francophone West Africa. The Nordic businesses added experience in short-term rentals and new operating capabilities.

In 2019, the company combined its Norwegian operations with Key Butler's to strengthen that side of the group. HotelOnline also raised a further USD 320,000 from existing shareholders and new investors.

Every deal was different. Some brought software. Some brought people and local market knowledge. Some opened doors that would have taken years to open organically. Together, they made HotelOnline broader, more visible and more resilient.

By the fourth quarter of 2019, the work was paying off. HotelOnline reached break-even for the first time.

The team entered 2020 expecting its strongest year yet.

Then the world stopped travelling.

2020

When survival became the strategy

COVID-19 hit travel and hospitality before almost any other industry and harder than most. Borders closed. Flights were grounded. Hotel occupancy collapsed.

For HotelOnline, revenue fell just as the company had finally reached profitability. Good people had to leave. Plans were shelved. The focus narrowed to cash, clients and survival.

There was no clever growth story that year. The job was to stay alive.

Shareholders backed the company with fresh capital, and the team kept working with hotels through the crisis. HotelOnline also completed equity-based acquisitions of Cloud9, a Kenyan travel and lifestyle platform, and Zimbabwean hotel-booking company Africabookings. Both deals were completed while much of the travel sector was frozen.

Surviving COVID changed HotelOnline. The company came out leaner, more focused and far more conscious of the need to build technology and services that work in the real conditions African hotels face.

Reaching break-even in 2019 had shown that the model could work. Surviving 2020 showed that the company could endure.

2021 to 2022

The email that opened a new chapter

Years earlier, Savanna Sunrise had chosen eZee Technosys as a core technology provider. eZee was later acquired by Yanolja, the South Korean travel technology group backed by SoftBank and Booking Holdings.

In May 2021, an email arrived with an offer that would have sounded improbable back in the five-apartment days: Yanolja wanted to invest in HotelOnline.

The deal took ten months. It involved legal and financial due diligence, two law firms and the relocation of HotelOnline's holding company from Dubai to Singapore. In March 2022, the investment was completed and later announced publicly.

It was Yanolja's first investment in Africa. For HotelOnline, it brought capital, technology and validation from a global company that understood hotel software at enormous scale. It also traced a direct line back to a technology relationship first built in India six years earlier.

The investment helped HotelOnline rebuild past its pre-COVID level and prepared the company for its largest transaction yet.

2022

HotelPlus changes the scale

In September 2022, HotelOnline acquired HotelPlus, one of East Africa's best-known hospitality software companies.

Founded in Kenya in 2009 by Eric Muliro, HotelPlus brought more than 2,000 hotel clients, an established reseller network across over a dozen African countries, a software development team and a proven on-premise property management system. That last point was especially important. Cloud software was growing quickly, but many hotels still operated in places where internet connectivity could not be taken for granted.

The combination brought together two sides of the same problem. HotelOnline had built deep strength in online distribution, digital marketing, pricing and revenue growth. HotelPlus had spent more than a decade building the systems that hotels use at reception, in housekeeping, at the restaurant and in the back office.

Together, they could offer far more than either company could deliver alone.

The HotelPlus transaction brought HotelOnline to 11 mergers and acquisitions. It also helped turn the company from a digital revenue specialist into a broader hospitality technology group, connecting hotel operations, distribution, direct bookings, payments and revenue management.

2023 onward

Profitable again, and built for the next chapter

In 2023, HotelOnline returned to profitability for the second time and recorded USD 7 million in gross sales. By then, the group had grown to more than 6,000 hotels and hospitality businesses across 27 African countries.

Those numbers tell part of the story. The more important change is what HotelOnline can now do for a hotel.

Today, the company helps properties run their daily operations, sell rooms across major online channels, manage rates and availability, take direct bookings, process payments, improve their online presence and make better commercial decisions. The technology is backed by local teams who understand African hotels, African payments, African markets and the realities of operating with uneven connectivity.

Independent hotels and small chains remain at the centre of the business. They are often excellent at hospitality but do not have the technology departments, distribution teams and revenue specialists available to global brands. HotelOnline gives them access to those capabilities without forcing them into systems designed for a completely different operating environment.

The company's work in Zanzibar points towards the next phase. As an approved property management system provider, HotelOnline is helping accommodation businesses connect hotel operations, distribution, payments and required reporting through practical digital infrastructure. It is a model with relevance far beyond one market.

A HotelOnline-sourced hospitality industry gathering in Kenya
HotelOnline continues to work in conversation with the wider hospitality community.

HotelOnline is still building, still adapting and still focused on the gap that started everything.

Today

The same idea, on a much larger stage

No company reaches 27 countries through founder energy alone. HotelOnline's story belongs to the teams who answered reservations at midnight, opened new markets, built software, supported hotels through COVID and kept solving difficult problems when the easy options had run out.

It belongs to the shareholders who backed the company before success was obvious, the businesses that joined the group, and the thousands of hotel owners and managers who trusted HotelOnline with a critical part of their operations and revenue.

The company has changed enormously since the first five apartments in Syokimau. The core idea has not.

A good hotel should not lose business because it is difficult to find online, hard to book or held back by the wrong technology. With the right systems, the right commercial support and people who understand the market, an independent African hotel can compete with anyone.

Five apartments proved the point. Now we are taking it across Africa.

Become part of the next chapter

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Whether you run one hotel or a growing group, HotelOnline can help you simplify operations, reach more guests and build stronger revenue.