Hotelbeds, the wholesale accommodation distribution platform, is gearing up for an Initial Public Offering (IPO) that could potentially value the company at €5 billion. This follows reports from June indicating the possibility of the move as a precursor to a later sale of the business. Based in Mallorca, the company’s owners, Cinven and CPPIB, have enlisted the services of Morgan Stanley and Evercore to explore the feasibility of listing on the Spanish stock exchange.
Background and Strategic Move
Earlier this year, it was reported that three private equity funds—Cinven, EQT, and Canada Pension Plan Investment—were entertaining offers for the world’s largest bed bank. At that time, there was speculation that the owners were looking to divest their stakes either through an IPO or direct sale.
A Surge in Business
Hotelbeds has been experiencing a significant rebound in its B2B operations since the start of 2023. Between January 9 and January 22, the company reported its highest-ever fortnightly revenue from bookings, with a record of one booking per second during peak hours. To put this into perspective, Hotelbeds processes 4 billion daily search queries, compared to Google’s 9 billion.
About Hotelbeds
Founded in 2001 as part of Viajes Barceló, Hotelbeds has emerged as one of the world’s leading bed banks. Headquartered in Palma, the company offers a staggering 320,000 travel products in over 195 countries, including 300,000 hotels.
Conclusion
With this upcoming IPO, Hotelbeds is setting its sights on significant expansion and valuation. The decision comes at an opportune time for the company, as it capitalizes on a surge in demand and aims for an even larger footprint in the travel technology sector. Whether the company opts for a direct sale or goes ahead with the IPO, it’s evident that Hotelbeds is a force to be reckoned with in the travel industry. The next steps in this venture remain to be seen, but they are eagerly awaited by investors and industry watchers alike.
