The potential sale of Kuoni and of TUI’s Hotelbeds unit could result in a far-reaching consolidation of the international bedbanks business.
Kuoni confirmed this week that it has been received “preliminary approaches” from unnamed companies “regarding a potential offer for the Kuoni Group and its businesses”. But the loss-making company, now led by new CEO Zubin Karkaria, emphasised that “discussions are at a preliminary stage” and an offer is not certain.
International news agencies had reported that Swedish equity firm EQT and other financial investors such as Permira and Cinven were potential bidders for the Swiss group. But Chinese leisure travel and aviation group HNA, which sealed a cooperation deal with Kuoni in November, is also a candidate, according to Reuters.
It is unclear whether the potential bidders are interested in Kuoni as a whole or would seek to break up the group into its three businesses. This would now be much easier following the sale of the Swiss firm’s European tour operator businesses to DER Touristik and the disposal of the subsidiaries in India and Hong Kong.
Kuoni’s largest business unit is now its B2B hotel accommodation supplier Global Travel Distribution (GTA), which is the second-largest such provider after TUI’s Hotelbeds unit, which is up for sale. TUI announced last autumn that Hotelbeds, with profits of €117 million and turnover of €4.3 billion, is no longer a core business and has commissioned two investment banks to seek buyers.
Speculation has already broken out that an investor could acquire both GTA and Hotelbeds and merge them into a single dominant B2B hotel capacity provider serving tour operators, hotel portals and other travel companies.
The other two Kuoni businesses are its incoming services division and the specialist visa and financial services unit.
