They might just be singing Canadian national anthem “O Canada” around the offices of San Franscisco-based Airbnb these days.
The online vacation-rental company said it has purchased Montreal-based Luxury Retreats, which, in Airbnb’s words is “a luxury vacation rental company offering over 4,000 homes in 100 destinations around the world.” Under terms of the deal, Luxury Retreats Chief Executive Joe Poulin will join Airbnb and lead its luxury homes offerings and report to Airbnb CEO Brian Chesky. Luxury Retreats will remain based in Montreal and, for now at least, operate as a separate unit.
Financial terms weren’t disclosed, but Bloomberg reported that people close to the deal said the price tag was $300 million in cash and stock. The deal is said to be Airbnb’s largest-ever acquisition.
It appears Airbnb won a bidding war to acquire Luxury Retreats, even though it didn’t write the biggest check possible. Bloomberg said online travel agency Expedia and European hotel giant AccorSA also talked with Luxury Retreats about an acquisition, and actually made bigger offers than Airbnb.
However, Luxury Retreat’s Poulin is said to have chosen to tie up with Airbnb because it offered him more control than the other bidders.
Photo: Airbnb logo (Courtesy: Airbnb)