HBX Group, formerly the Hotelbeds Group, is set to raise €725 million with an IPO in Spain. The world’s leading wholesaler of hotel rooms is seeking an initial value of about €7 billion.
HBX generates almost 90% of its revenue from hotels and other accommodations. The group is a leading OTA that distributes listings for travel agencies, tour operators, airlines, hotels, and hotel groups. 8
A report from the group outlines how the group intends to distribute a dividend of up to 20% of profits over the next three years. This promise is based on a gross operating profit of over €400. The company also projects that this figure will be exceeded in 2025.
Highlights:
- HBX Group plans a €725M IPO in Spain, aiming for a €5B valuation.
- IPO includes partial sales by major shareholders CPPIB, Cinven, and EQT.
- Proceeds to address debt and reinforce financial stability.
- Node for Europe’s recovering IPO market amidst global economic challenges.
- Core business links top travel firms to hotel rooms, cars, tours.
Control of Hotelbeds lies with investment funds Cinven, CPPIB, and EQT. In 2016, Cinven and CPPIB jointly acquired the company at a valuation of approximately €1.165 billion. EQT, initially a competing bidder, later entered as a minority shareholder in 2017. According to Financial Times, Evercore, Morgan Stanley, Citi, and Bank of America will be global coordinators.
By the end of 2023, operations had recovered from pandemic disruptions. In light of this stability, the owners are now exploring strategic options, including a potential sale or an IPO. The ongoing review of strategic alternatives suggests attractive prospects for investors. With a solid recovery after the pandemic, Hotelbeds is positioned as a competitive player in the travel services sector.
Source: HBX Group
