Hotelbeds, a major player in the global travel industry, had previously planned an IPO in Spain for this summer but has now delayed those ambitions until the end of 2024 or early next year. The decision to delay the market debut was made by the private equity firm Cinven and the Canadian Pension Plan Investment Board, the two main owners of Hotelbeds. They hope that delaying the IPO will result in a higher valuation for the business, possibly surpassing the projected $4 billion valuation if it had taken place this summer.
The role of Hotelbeds in the travel industry is crucial, as it supplies wholesale hotel rooms to tour operators, travel agencies, and airlines, covering approximately 2,000 destinations globally. The company plays a significant part in providing the hotel portion of vacation packages offered by various travel entities. Despite the uncertainty in the market, there is speculation that Hotelbeds could be valued at a range of 10-15x EBITDA if it goes public by the end of the year.
Morgann Lesné, a partner at Cambon Partners, a Paris-based firm providing mergers and acquisitions advisory services, commented on the potential valuation of Hotelbeds. He pointed out that Expedia is currently trading at a low multiple and that the upcoming IPO of TBO in India will provide insight into how businesses like Hotelbeds are perceived in the market. Hotelbeds reportedly achieved 369 million euros in EBITDA by the end of 2023, with a total transaction volume of 8.4 billion euros, indicating a solid financial performance leading up to a possible IPO.
As the fiscal year for Hotelbeds ends on September 30, there is a window of opportunity for the company to go public under Spanish market rules, with a deadline until mid-February of the following year. The decision to delay the IPO until the end of 2024 or early next year suggests that the owners are optimistic about a higher valuation for Hotelbeds based on the business outlook. This strategic move reflects their confidence in the company’s performance and potential growth in the coming months.
With the ever-evolving landscape of the travel industry, the timing of an IPO can significantly impact the valuation of a company like Hotelbeds. By delaying their market debut, the owners are banking on a stronger valuation in the future, as indicated by their decision to postpone the IPO until late 2024 or early next year. As one of the key global players in the travel industry, Hotelbeds’ performance and valuation will be closely monitored in the lead-up to its potential listing, aiming for a successful entry into the public market.
