Kenya-based HotelOnline has acquired HotelPlus, a hotel software provider operating in 22 countries across the globe, for an undisclosed amount. HotelOnline is a travel technology company. The startup also parades as an e-commerce and digital marketing enabler for the hospitality sector. The acquisition follows HotelOnline’s Series A funding which took place earlier this year.
Following the acquisition, HotelOnline said its customers have increased by more than 2,200. Other benefits the Kenyan startup has gained following the acquisition include a window for more customers, unique offerings, revenue management, and AI-driven pricing. “We are significantly increasing our client base, while capitalizing on the combined strengths of both companies, creating a force to reckon with in East Africa’s hospitality industry,” Havar Bauk who co-founded Hotel Online with Endre Opal in wo14 said adding that “Because the HotelPlus client-base currently uses on-premise software, this creates a unique integration opportunity with our cloud solutions…We are creating a massive win-win situation for the HotelPlus clients, in other words.”
What does HotelOnline do? The company helps hotels to establish an online presence and target a wider audience. It provides booking engines for its clients and helps them to gain prominence on distribution platforms such as Booking.com. The startup also provides these hotels with the capacity to manage their own platforms using cloud-based digital tools including property management systems. HotelOnline also provides management services to property owners.
Although the full terms of the acquisition were not disclosed, HotelPlu’s founder will get a payout and $1.9 million worth of HotelOnline shares valued at $24 million prior to the deal. He will also take on a new position as HotelOnline’s Chief Technology Officer ( CTO).
HotelOnline will be embarking on an Africa-focused expansion. It currently has more than 6,000 clients across 27 African countries. Its plan is to become a big player in East Africa, Nigeria, and Senegal, and in the long run, become a big pan-African player.
“HotelPlus has built an impressive commercial organization, with skilled salespeople, and a high-performance reseller network covering more than a dozen countries across the continent. Integrating these resources prepares the ground for our accelerated expansion in Africa,” co-founder Havar Bauk said.
Commenting on the acquisition, Trond Riiber Knudsen of the TRK Group, an Oslo-based venture capital firm and an investor in HotelOnline, said in a statement, “A deal like this helps build a strong African travel-tech player, with a local and continental foothold. This is a key part of what we aim to contribute through our stake in HotelOnline. We see great potential in the new company, and we look forward to the journey from here.”
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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