Australian Securities Exchange-listed Webjet Limited (Webjet) has acquired the Dubai-based Destinations of the World (DOTW) for 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. Webjet is acquiring DOTW from Gulf Capital, the largest private equity firm in the Middle East.
DOTW is a leading independent B2B platform having a a particular strength in the Asia Pacific market, which is a key strategic focus for WebBeds. 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.
Webjet’s Managing Director, John Guscic said: “I am truly delighted to announce the acquisition of Destinations of the World which solidifies WebBeds’ position as the #2 B2B player globally. 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.”
Commenting on the sale, Karim El Solh, CEO of Gulf Capital, said: “We are very pleased to be announcing today the strategic sale of Destination of the World to Webjet, a leading B2B travel business. Gulf Capital has worked very closely with the DOTW management team to build a high -quality global business with a strong market position over the last four years.”