Capital One Advances Travel Deal Strategy With Intent to Invest in Inspirato

Capital One, which operates a travel portal and already invested $96 million in online travel agency Hopper last year, said it intends to invest $25 million through a convertible note in luxury hospitality company Inspirato.

Although Inspirato and Capital One Ventures entered into a definitive agreement to make the deal happen, it is contingent on the two companies entering into a commercial agreement and strategic relationship, and is subject to Inspirato shareholder approval.

“The capital is expected to provide broad operating flexibility to Inspirato as it continues to enhance the luxury travel experience it delivers for its members,” Inspirato said.

Inpirato, which has struggled since it went public in February 2022, was slated to announce its second quarter results Tuesday.

A commercial relationship would presumably involve Inspirato, which offers luxury homes and villas, as well as a pass to use them, providing some of that inventory on Capital One Travel, which is powered by Hopper. But Capital One has been increasingly striking its own direct deals with luxury hotels independent of Hopper.

“Through strategic investing, we look to harness the potential of innovative companies that could integrate well with Capital One’s business and infrastructure,” said Nathan Krishnamurthy, partner, Capital One Ventures in a statement. “With its access to extraordinary properties around the world, a well-developed technology footprint, and white glove service capabilities, Inspirato offers a unique membership for luxury travelers.” 

Inspirato co-founder and CEO Brent Handler was upbeat about the partnership. “This investment enables us to set a global standard for luxury travel and continue enhancing our exceptional experiences to meet evolving consumer needs,” he said in a statement.