Webjet has entered into an agreement to acquire Destinations of the World (DOTW), bringing the Dubai-based B2B platform into the WebBeds portfolio comprising JacTravel, TotalStay, Sunhotels, Lots of Hotels and FIT Ruums.
The company is buying 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.
In a statement, Webjet said the DOTW acquisition will significantly enhance WebBeds’ Asia-Pacific and Americas businesses, while further expanding its presence in the key European and MEA regions to solidify its position as the “B2B player globally”.
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.
The acquisition is expected to significantly expand WebBeds’ portfolio with a 24 per cent increase in direct contracts. Of DOTW’s portfolio of 12,300 directly contracted hotels, 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 deepen WebBeds’ room allocation and availability at key hotels around the world.
As well, adding DOTW to the WebBeds family will boost annual total transacted volume to over A$2 billion (US$1.4 billion, proforma for FY2018), representing an increase of 54 per cent and will increase the global footprint with offices in 36 locations.
Following the acquisition, WebBeds will have more than 2,100 employees. It will feature a portfolio of more than 250,000 hotels in all regions of the globe, of which 28,500 are directly contracted.
Webjet’s managing director, John Guscic said Webjet and DOTW will be working to integrate our businesses “over the coming weeks and months”.