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.The Hotel can be accessed by logged-in users via the Habbo Homepage.

In December 2008, Habbo's Russian community announced it was closing in February 2009 as a result of low numbers.

Those on the site with "furni" (virtual furniture that can be used to furnish rooms in the hotel that are bought with the use of Habbo Credits or Coins, that can be purchased with actual money) have been told they will receive credit codes for use on the USA Habbo community.

Habbo stemmed from a 1999 hobby project by creative designer Sampo Karjalainen and technologist Aapo Kyrölä entitled Mobiles Disco, for a Finnish band.

It was a virtual chat room running on Aapo's Fuse technology. It launched in August 2000 on the ISP's web portal.

Public rooms are designed by Sulake and are not customizable by users.

Some rooms used to contain games called Battle Ball, Snow Storm, Wobble Squabble and diving, but these games were removed due to coding issues when they upgraded from Shockwave to Flash.

The next hotel was launched in Switzerland a few months later, in four languages.

It has since been expanded to over 31 countries in five continents, including Hotelli Kultakala in Finland which was made into a Habbo Hotel and has been invested in by venture capitalists.

As of August 2012, over 273 million avatars have been registered with an average 5 million unique visitors monthly.