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The challenging Chinese market and high operational costs led to the decision of closing the service.Customers in China were redirected to other Habbo communities.After having been contracted to design a virtual game and chat called Lumisota (Snow Wars) for a Finnish internet service provider, they were contracted for another project. Aapo, Sampo and Dee Edwards, an entrepreneur from the UK, wanted to create an international business based on the virtual hotel concept, drafting a plan in Autumn 2000, and raised finance.By the end of January 2001, Habbo Hotel had been launched in beta mode.

The service began in 2000 and has expanded to include nine online communities (or "hotels"), with users in over 150 countries.The new hotel exited beta a few weeks afterwards, aimed at the teenage market, with marketing and payment partners in place, run from a HQ in London.It featured a new credits system with community and safety features.fantasy games, role playing games, etc), it became evident that the internet could quickly and easily become an issue for many.

Today, with the influx in social media networking, many also find it difficult to separate their reality lives from their online lives.

In January 2010, it was announced that Habbo US and Habbo Canada would undergo a merger, to be finalized in April 2010.

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