Hotelbeds Boss Isn’t Worried About the Model of Nonrefundable Rates in a Post-Crisis World
Photo Credit: The Hotelbeds headquarters in Palma de Mallorca, Spain. Hotelbeds
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The hotel room bedbank Hotelbeds confirmed on Thursday that it had received a loan of about $435 million (€400 million), boosting its cash cushion. But will cautious travelers be as interested in the company's typically non-refundable rates and otherwise typically restricted offers during months of uncertainty about possible travel restrictions?
Hotelbeds, a company that moves hotel inventory at wholesale rates to offline travel agencies, has had a tough couple of months like the rest of the travel industry. On Thursday, the bedbank, or hotel room reservation portal, said it had received a loan of about $435 million (€400 million) to boost its cash cushion.
"Our lenders have approved this financing because they believe we're a solid business," said Carlos Muñoz, managing director, in an interview. The further investment will guarantee the company's solvency during the pandemic.
A significant portion of the interest won't be due until the investors sell the company, Muñoz said. Hotelbeds' controlling investors Cinven, Canada Pension Plan Investment Board, and EQT arranged for the loan via a dozen banks. The private equity firms and pension fund had in 2016 invested $1.3 billion (€1.2 billion) in the company.
But some experts questioned if the measures would be enough.
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