LONDON, 29 April 2016: Worldwide tour giant TUI is selling off its Hotelbeds Group for €1.2 billion as the world’s largest tour operator ditches non-core assets, the Financial Times reported late Thursday.
The FT said UK based buyout firm, Cinven and the Canada Pension Plan Investment Board, have each agreed to buy 50% of the company in a transaction that is expected to be completed in September, subject to regulatory approval.
Hotelbeds is the world’s largest B2B bed-bank, offering rooms to travel agencies and airlines, worldwide.
TUI is selling HotelBeds to concentrate on its core tour business. It had already sold other web-based bed-banks that it owned such as LateRooms and closed an under performing AsiaRooms that at one time was the leader in Asia.
According to the Financial Times, the Thursday’s deal is the latest move by the tour operator to dispose of non-core assets and focus on package holidays.
TUI said it plans to spend the money investing in growing its customer base, with a focus on cruises and hotels, as well as strengthening its balance sheet to improve its credit rating.