Sabre Corporation, a global leader in travel technology, has entered into a definitive agreement to sell its Hospitality Solutions business to TPG, a private equity firm, for $1.1 billion in cash. The deal positions Hospitality Solutions as an independent technology company, dedicated to growth and innovation in the hospitality industry.
Establishing Hospitality Solutions as a Standalone Leader
Hospitality Solutions serves more than 40% of the world’s leading hotel brands, offering a SaaS-based platform that streamlines reservation and guest information processes for efficient hotel operations. This arrangement will provide Hospitality Solutions with dedicated resources to enhance its services and expand globally.
Benefits for Sabre
Sabre expects to receive approximately $960 million in net proceeds after taxes and fees, which will primarily be used to pay down debt. This move enables Sabre to:
- Optimise its portfolio, focusing on core areas such as airline IT and travel marketplace platforms.
- Reinforce a disciplined capital allocation framework.
- Improve its capital structure and continue refinancing debt to achieve long-term growth.
Kurt Ekert, President and CEO of Sabre, stated: “The $1.1 billion sale reflects the transformation driven by the Hospitality Solutions team. This divestiture allows Sabre to focus on its core strengths while ensuring Hospitality Solutions continues to grow under TPG’s guidance.”
TPG’s Vision for Hospitality Solutions
TPG will invest in Hospitality Solutions through its U.S. and European private equity platform, with plans to build the company into a comprehensive technology provider for hotels.
Tim Millikin, Partner at TPG, commented: “Hospitality Solutions’ platform is essential for its customers in delivering exceptional guest experiences. With dedicated capital and operational focus, we aim to drive significant growth for the business.”
Supporting Future Growth
The transaction also includes a transition services agreement, allowing Sabre to assist with operations during the transition period. This deal has been approved by Sabre’s Board of Directors and is expected to close by Q3 2025, subject to regulatory approvals and customary conditions.
Background on Hospitality Solutions
Sabre’s hospitality division evolved from the SynXis acquisition in 2005, growing into a trusted platform relied upon by major hotel brands. Investments like Retail Studio demonstrate its ability to adapt to industry demands and prioritise guest experiences.
This agreement is a pivotal moment for both Sabre and Hospitality Solutions, highlighting their shared commitment to innovation and sustainable growth in the dynamic hospitality industry.
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