Luxury Retreats is a travel company that provides luxury sharing economy home rentals to everyone from a wealthy business traveller to a famous celebrity via their website. This company is considered to be a high-end Airbnb, that recently made a move to acquire the Luxury Retreats company for roughly $200 million. If you are an investor interested in buying Airbnb shares, keep reading below to learn about this buyout and make an informed investment.
Luxury Retreats International Inc. is a Montreal based travel booking company that specializes in the area of luxury accommodations. The company was founded in 2002 by a man named Joe Poulin, a web developer from Montreal. In addition to the company’s villa listings, they also provide complimentary guest support to help customers find their perfect vacation spot. The company says they have turned a profit for many years, and Airbnb certainly wants to benefit from their success. You do not need sales forecasting software to tell you that this would be a wise buy for Airbnb.
Airbnb is a homeshare vacation rental provider that does not specialize in the luxury sector, unlike Luxury Retreats. However, they have done very well in the vacation rental business nonetheless. It is used for booking everything from business trips to family vacations. In fact, Airbnb was actually founded after Luxury Retreats, in the year 2008, but is still much better known than their luxury counterpart. As of right now, Airbnb is a privately owned and operated company. However, that may not be true for long.
Airbnb Stock Opening
Word on Wall Street is that Airbnb will soon be going public within the 2017 fiscal year. The company is estimated to be valued at roughly $30 billion, which would make Airbnb the second largest startup in the US. However, those investors who provided the necessary business funding are looking to start making returns as soon as possible. Experts expect this to be the one of the most exciting and desired tech company debuts in many years. If you are interested in buying Airbnb stock once it goes public, make sure to follow news about the company and consider the value added if they do finalize their acquisition of Luxury Retreats.
Luxury Retreats Acquisition
Airbnb’s acquisition of Luxury Retreats was successful. It provides professionals with another reason to give working vacation meaning. The deal was reportedly worth roughly $300 million in both capital and stock. The most surprising fact about the acquisition was not the price tag, however. Luxury Retreats actually turned down higher offers from both Accor and Expedia in favor of less money from Airbnb. Clearly, you do not need to know the allocation definition to know that this promises to be a great buy for Airbnb.
Marketing Luxury Vacation Rentals
Investors need to consider the top marketing tactics for Luxury Retreats properties as well. After all, you cannot make a profit if no one rents the property you invest in. With this being said, you need to ensure that proper marketing methods will be put in place. Only then can you maintain a positive cash flow through the vacation rentals. Consider learning what stocks should I invest in to boost your profits further.
What Does This Mean For Investors
What does the Luxury Retreats acquisition mean for potential Airbnb investors? Simply put, it means it is an even better investment option than ever before. Luxury Retreats has reported roughly $100 million annually in yearly rentals. Add that to the $30 billion dollar valuation of Airbnb, and you have a recipe for an incredibly lucrative investment. If you are an investor, you should certainly consider investing in Airbnb when it goes public this year. If you are new to investing, consider reviewing the beginners’ Money Market fund investing guide first.
Airbnb recently started moving to acquire Luxury Retreats. This company is essentially the high-end counterpart to Airbnb anyway, so the decision makes sense. Airbnb is expected to go public within the next year, and their acquisition of Luxury Retreats International Inc. will definitely add to their value, just like trust funds add to your own value. So if you are an investor, make sure you stay up to date on the company’s latest news. You would be wise to consider making an investment when the chance comes.