The acquisition will solidify WebBeds position as the #2 B2B player globally and DOTW will join the JacTravel, TotalStay, Sunhotels, Lots of Hotels and FIT Ruums brands in the WebBeds business.
Webjet has agreed to acquire Dubai-based Destinations of the World (DOTW), a global pure-play B2B accommodation wholesaler, in a deal worth US$173 million.
The acquisition will solidify WebBeds position as the #2 B2B player globally and DOTW will join the JacTravel, TotalStay, Sunhotels, Lots of Hotels and FIT Ruums brands in the WebBeds business.
Listed on the Australian Stock Exchange, 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.
Webjet says DOTW’s strengths, in terms of geographic focus, product range and customer mix, are highly complementary to the WebBeds business. Further, it says the acquisition is expected to deliver considerable cost and revenue synergies over the short to medium term.
DOTW currently has a portfolio of about 12,300 directly contracted hotels. Of these, some 5,600 are unique to WebBeds, thereby increasing WebBeds directly contracted inventory pool to more than 28,500 hotels.
Additionally, the roughly 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.
Adding DOTW to the WebBeds’ family will boost annual total transacted volume to more than A$2.0 billion (US$1.43bn) representing an increase of 54% and will increase the global footprint with offices in 36 locations.
Following the acquisition, WebBeds will feature a portfolio of more than 250,000 hotels in all regions of the globe, of which some 28,500 are directly contracted.
Dr. Karim El Solh, CEO of Gulf Capital, said, “Consolidation is a key trend in the B2B industry and WebBeds is confident that by expanding its operations, it will be able to drive further growth for the benefit of the wider industry.”