HBX Group, formerly known as the Hotelbeds Group, plans an IPO in Spain within the next several weeks at a $5.1 billion (5 billion euro) valuation.
The globe’s leading wholesaler of hotel rooms, HBX Group generates 88% of its revenue from accommodations, and distributes them to 60,000 online travel agencies, traditional travel agencies, tour operators, airlines and loyalty programs, according to the IPO announcement.
HBX Group had planned to go public last summer but delayed it because of a crowded IPO market and a desire to cash in on what was expected to be record-breaking tourism figures, according to a published report.
Hotelbeds was founded in 2001 in Palma de Mallorca, Spain. Private equity firms acquired it in 2016, and rebranded it to HBX Group in 2023. Its other brands include Bedsonline and ROIBack.
HBX Group’s business model is to negotiate discounted rates from hotels and then mark them up to distribution partners. The types of deals are complex, ranging from commission and markup models, to minimum commitments and overrides for achieving certain targets.
The company, for perhaps the first time, publicized its take rate of around 9% in fiscal 2024.
HBX Group connects 250,000 hotels — including 100,000 that it has direct contracts with — to its distribution partners.
In addition to its core accommodations business, HBX Group wholesales transfers, experiences and car rentals; offers direct online sales tech to hotels, and provides fintech and insurance solutions.
Hopes to Raise $747 Million
In the IPO, which would see HBX Group trade on Spanish exchanges, it plans to issue new shares and hopes to raise $747 million (725 million euros) to pay down debt and settle incentive plans.
Cinven, the Canadian Pension Plan Investment Board and EQT control HBX Group, and they plan a secondary offering, as well.
“This IPO will help accelerate our growth strategy, strengthen our financial position, and help us continue to innovate in the travel tech industry by connecting distributors and suppliers of hotel, transport and experience providers worldwide, thereby delivering value for all our stakeholders,” said CEO Nicolas Huss in a statement.
In fiscal 2024, HBX Group saw revenue grow 5.6% year over year to 693 million euros ($714 million). The midrange of its fiscal 2025 guidance would see revenue jump 11% to 770 million euros ($789 million).
EBITDA in fiscal year 2024 was 363 million euros ($373 million), an 8% year over year increase.
The announcement didn’t mention any risk factors or provide any detail on the competitive landscape. However, the company said the approval process for its prospectus is “ongoing,” and will be published once it gets the OK from regulators.
HBX Group competes in the wholesale accommodations arena with a smaller bed bank, Webbeds, which is a unit of Australia’s Web Travel Group. The parent company didn’t break out Webbeds’ revenue for fiscal year 2024, but said its EBITDA rose 39% year over year to $100 million (Australian $162.4 million).
