Webjet has entered into an agreement to acquire the Dubai-based wholesale accomodation platform Destinations of the World (DOTW) for the equivalent of AUD 240 million.
Webjet said the USD 173 million acquisition would solidify WebBeds position as the number-two B2B player globally “and DOTW will join the JacTravel, TotalStay, Sunhotels, Lots of Hotels and FIT Ruums brands in the WebBeds business.
“Webjet is acquiring DOTW from Gulf Capital, the largest private equity firm in the Middle East, its founder and its management team, who will retain a shareholding in the enlarged Webjet Group,” a Webjet statement said.
It described DOTW as “a leading independent B2B platform with regional expertise across geographically diverse source and destination markets.
“DOTW’s strengths, in terms of geographic focus, product range and customer mix, are highly complementary to the WebBeds business. While WebBeds’ main focus is on the long-term benefits of the acquisition, the acquisition is also expected to deliver considerable cost and revenue synergies over the short to medium term.”
Webjet added that DOTW’s portfolio of about 12,300 directly contracted hotels included about 5600 that were unique to WebBeds, thereby increasing WebBeds directly contracted inventory pool to over some 28,500 hotels. Additionally, the 6700 or so overlapping hotel contracts would further deepen WebBeds’ room allocation and availability at key hotels around the world.
“DOTW has a particular strength in the Asia Pacific market, which is a key strategic focus for WebBeds. Furthermore, it will deliver a material number of contracts into the strategically important Americas region, while further expanding WebBeds’ presence in the key European and MEA regions.
“WebBeds is focused on helping our clients succeed and enabling our hotel partners to respond to fast-changing market trends,” Webjet’s managing director, John Guscic said.
“The acquisition of DOTW will ensure we can accomplish this on an even greater scale than we have achieved to date.
“DOTW is a company we have worked with for many years, and we have the greatest amount of respect for their business. We look forward to working with the DOTW team in the weeks and months ahead as we integrate our businesses and develop the best possible outcomes for all of our partners and clients.”
Webjet said adding DOTW to the WebBeds’ family would boost annual total transacted volume (TTV) to over AUD 2 billion (proforma for FY18) representing an increase of 54% and would increase the global footprint with offices in 36 locations.
“Following the acquisition, WebBeds will have more than 2,100 employees, allowing it to provide truly local support to its worldwide partner network. It will feature a portfolio of more than 250,000 hotels in all regions of the globe, of which circa 28,500 are directly contracted.”
Edited by Peter Needham
.jpg){kind=tracking}