Bon voyage: 6 PE-backed deals in the travel industry | PE Hub

With summer creeping up soon, it’s about time for everyone to plan their vacations. Despite numerous headwinds, demand for consumer and business travel has been strong, according to a Harris Williams report.

“The travel sector is in an upswing, with global travel volumes steadily approaching and, in some cases, exceeding pre-pandemic levels,” said Will Bain, managing director at Harris Williams’ consumer group. “There is renewed focus from the consumer on ‘experiences,’ and travel is at the heart of this. On the business travel side, we have seen demand come back far stronger than had been predicted.”

Bain went on to say that all travel businesses were hit hard by the covid-19 pandemic. But the best businesses have come out of the pandemic stronger than they went into it. “They have focused on optimizing their business models and delivering efficiencies at multiple levels,” he added. “Consequently, many are delivering better, sustainable margins.”

Here’s a look at six recent travel deals since the top of the year. The list begins with the most recent.

1. Silversmith-backed RedAwning acquires Awning.com

In April, Silversmith Capital-backed RedAwning acquired San Francisco-based remote vacation rental management provider Awning.com. Founded in 2020, Awning.com helps investors find, buy and manage rental properties.

RedAwning is a software company headquartered in Petaluma, California. It is used by property owners and managers to administer, market and book vacation rental properties. Silversmith is a private equity firm based in Boston.

2. Partners Group takes a stake in Trinity Investments

Also in April, Partners Group agreed to acquire a minority stake in Trinity Investments. Based in Honolulu, Trinity Investments is a private real estate firm with a primary focus on hotels and resorts. Partners Group is headquartered in Baar-Zug, Switzerland.

“We are investing in real estate operating companies in order to gain vertical depth in sectors and geographies where we have strong thematic conviction,” said Jason Longo, member of management, real estate Americas, Partners Group. “Trinity has nearly three decades of experience in the hotel real estate asset class and that depth of knowledge shines through.”

3. Partners Group and Trinity Investments scoop up Scottsdale Plaza Resort & Villas

In another April deal, the aforementioned Partners Group and Trinity Investments acquired the Scottsdale Plaza Resort & Villas. Located in Paradise Valley, Arizona, the resort has 404 rooms spread across the central hotel and surrounding villa suites. It also has 50,000 square feet of meeting space.

“The Scottsdale Plaza Resort & Villas is a prime example of an excellent property coming to market in need of a significant capital investment from a partnership like Trinity and Partners Group that can deliver a development plan for future growth,” said Sean Hehir, managing partner, president and CEO of Trinity, in a statement.

4. L Catterton makes investment in AmaWaterways

In March private equity firm L Catterton, based in Greenwich, Connecticut, made an investment in luxury river cruise line AmaWaterways. The firm acquired a stake in the company from a consortium of investors led by Certares.

Headquartered in Calabasas, California, AmaWaterways was founded in 2002. The cruise line offers river cruise experiences with 25 ships that sail across the rivers of Europe, South America and Africa.

“As consumers’ desire for unforgettable luxury travel experiences continues to grow, we understand the importance of creating highly curated and memorable opportunities for guests to see the world,” said Marc Magliacano, co-managing partner of L Catterton’s flagship fund, in a statement.

5. General Atlantic looks to grow Plusgrade

Also in March, New York-based growth equity firm General Atlantic announced that it is making a strategic growth investment in Plusgrade. Based in Montreal, Plusgrade is a travel upgrade tech provider.

“With ancillary revenues and loyalty programs standing as some of the most important drivers of growth in the travel industry today, we believe Plusgrade is strongly positioned to continue capturing the market,” said Tanzeen Syed, managing director and head of consumer internet and technology at General Atlantic, in a statement.

6. SVP snaps up Hornblower

In February, Strategic Value Partners agreed to acquire Hornblower from Crestview Partners. Hornblower is a San Francisco-based cruise and travel experience-provider. SVP is based in Greenwich, Connecticut.

Crestview will retain a significant minority stake in Hornblower. For the deal, Hornblower will receive $121 million in financing from SVP and Crestview, with the company’s total debt to be reduced by approximately $720 million.

“With substantial growth potential in travel and tourism, we see significant opportunities ahead for Hornblower to further expand its leadership position,” David Greenberg, co-head of the North American investment team at SVP, said in a statement.