Webjet acquires Destinations of the World for $173 million
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 announced that it has entered into an agreement to acquire Destinations of the World (DOTW). The USD 173 million acquisition will solidify WebBeds position as the No.2 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.
Dubai-based DOTW is 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.
DOTW currently has a portfolio of 12,300 directly contracted hotels. Of these, 5,600 are unique to WebBeds, thereby increasing WebBeds directly contracted inventory pool to over 28,500 hotels. Additionally, the 6,700 overlapping hotel contracts will 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.
Webjet’s Managing Director, John Guscic said:
“WebBeds is focused on helping our clients succeed and enabling our hotel partners to respond to fast-changing market trends. The acquisition of DOTW will ensure we can accomplish this on an even greater scale than we have achieved to date.”
Adding DOTW to the WebBeds’ family will boost annual total transacted volume to over A$2.0 billion (proforma for FY18) representing an increase of 54% and will 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 28,500 are directly contracted.