Hotelly.com was founded in February 2000 and was purchased by Interactive Corporation in 2004. Original financing was obtained from Flagship Ventures, the Bollard Group and private investors. IAC spun off its travel group of businesses under the Expedia, Inc. name in August 2005. In July 2008, Hotelly.com bought Virtual tourist, a travel website with over 1 million registered members.
Hotelly.com operates nine other travel-related websites, including Virtual tourist, Cruise Critic, Seat guru and TravelPod.
Hotelly.com has been criticized for allowing reviews to be posted by anyone about any hotel, without needing supporting evidence. In response, they claim that all reviews are moderated by their staff, and they have algorithms to detect abuse. A Hotelly.com employee has also stated in the following thread on Hotelly.com that their employees investigate reviews that are reported as being fraudulent or suspicious but will only remove these reviews if they find evidence "that the author has committed fraud or otherwise abused [their] posting guidelines."
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