Hotelbeds Group has announced the sale of its destination management division to Tui as a continuation of its strategic focus on its bedbank core.
TUI will acquire for an enterprise value of €110 million all of the assets of Hotelbeds’ destination management division, which represents the group’s incoming services offering and is made up of three main global brands: Destination Services, Intercruises Shoreside & Port Services, and Pacific World.
This news follows Hotelbeds Group doubling the size of its business by sales through the acquisitions during 2017 of Tourico Holidays and GTA, two leading bedbanks with a strong presence in North America and Asia-Pacific respectively.
Following the integration of these two leading bedbank brands into the group, there are now over 170,000 hotels selling to over 60,000 travel intermediaries globally via the group’s proprietary business-to-business technology platform.
The transaction is subject to customary regulatory and anti-trust approvals.
Joan Vilà, executive chairman of Hotelbeds Group, commented: “Today’s sale represents yet another important milestone for our group since becoming an independent business in September 2016.
“This simplified structure will enable us to focus fully on our bedbank core, where following our recent acquisitions of Tourico Holidays and GTA we are already a market-leading business innovating the hotel and ancillaries distribution chain via our best-in-class business-to-business technology platform.
The deal comes two years after Tui Group itself sold Hotelbeds for €1.2 billon.