TUI sells Hotelbeds for US$1.3bn
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TUI has agreed to sell Hotelbeds Group, its global B2B bedbank, for EUR1.165 billion (approx. US$1.31bn).
Cinven, the European private equity firm, and the Canada Pension Plan Investment Board (CPPIB) will jointly purchase the company, which was established in 2001. Following the acquisition, Hotelbeds will continue to be led by CEO Joan Vila and his management team.
“We are excited about Cinven and CPPIB’s investment in Hotelbeds which will enable us to continue improving the quality and range of services we provide to customers as a financially solid, independent and scalable bedbank operator,” said Vila.
“The bedbank segment continues to grow fast and with the backing of Cinven and CPPIB we will be well placed to invest more strongly than ever in technology, innovation and distribution. We look forward with anticipation to supporting the growth of our trade partners in this next stage of our development.”
A B2B bedbank, Hotebeds currently has an inventory of approximately 75,000 hotels in more than 180 countries. It also provides transfers, tours, MICE and visa services and cruise handling operations.
Cinven and CPPIB said they invested in Hotelbeds on the basis of its strong financial performance, including double-digit growth in the bedbank business over the last five years.
They also highlighted the growth opportunities presented by the global increase in hotel bookings, market consolidation opportunities in Europe, Middle East, Asia and the Americas, and the opportunity to improve distribution via travel agents and tour operators – “particularly in emerging economies”.
“Hotelbeds Group is a strongly performing business with the largest accommodation distribution network within the overall B2B bedbank market offering broad client reach global,” said Jorge Quemada, partner at Cinven. “We believe there are considerable growth opportunities through further investment in IT… and market consolidation as the wholesale accommodation market remains highly fragmented.
“Hotelbeds is run by a highly experienced and skilled management team, led by CEO, Joan Vila, whom we are looking forward to working with, along with our partner, CPPIB,” he added.
Headquartered in Palma de Mallorca, Hotelbeds currently employs 6,150 people worldwide.
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