HotelOnline, the #1 Revenue Partner for Hotels in Africa that currently serves more than 6,000 hotels in 30 markets, has announced the acquisition of HotelPlus, a software provider with clients in 22 countries.
The Kenyan-based travel-tech start-up helps hotels to establish and increase their visibility online to tap a wider clientele base. HotelOnline also helps its clients to deploy booking engines and gain prominence on distribution channels like Booking.com, in addition to equipping them with the capacity to manage operations on their own platforms using cloud-based digital tools including property management systems.
When reached for comments via LinkedIn, Eric Muliro, founder of the 13-year-old HotelPlus, didn’t disclose the full terms of the deal. He, however, confirmed TechCrunch’s report about “getting a payout and $1.9 million in shares in HotelOnline, which was valued at $24 million before the deal. Muliro also said he will work as chief technology officer (CTO) once the deal is complete.”
HotelOnline’s co-founder, Havar Bauck said his company is about to see an increase in its customers by over 2,200. According to TechCrunch, this will open the door for additional customers and unique offerings like payment solutions, AI-driven pricing, and revenue management.
“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,” said Bauck.
“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,” said Bauck, who co-founded HotelOnline with Endre Opal in 2014.
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 to through our stake in HotelOnline. We see great potential in the new company, and we look forward to the journey from here.”
HotelOnline said it is planning an aggressive expansion across Africa, where it currently has over 6,000 clients spread across 27 countries, by tapping HotelPlus’s reseller network, and the growing hospitality industry — which is recovering strongly from the ravages of the pandemic. It immediate plan involves attaining a dominant position in East Africa, and in Nigeria and Senegal, as it works towards being a powerful pan-African player.
“HotelPlus has built an impressive commercial organization, with skilled sales people, 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,” said Bauck.
HotelOnline has made strategic acquisition of companies across Africa, positioning itself at the helm of the industry. While many companies in the travel industry have been facing a major dip due to COVID-19, HotelOnline has diversified and acquired other entities solidifying its position in the African travel industry.
During the pandemic, it acquired Cloud9xp, an online marketplace, booking service and distributor for leisure experiences. Cloud9xp was founded in 2013 by Mesongo Sibuti and Tesh Mbaabu. It merged with another travel startup, HeartBeat Ventures in 2019, while retaining its brand.
