Online hospitality marketplace Airbnb has acquired Montreal-based posh vacation rental service Luxury Retreats in an effort to broaden its appeal to customers looking for more than a couch to crash on.
The cash and stock deal reported to be worth between US$200 million and $300 million is said to be Airbnbâs biggest acquisition to date. The financial terms were not disclosed.
Luxury Retreats adds over 4,000 up-market homes in 100 destinations around the world to Airbnbâs rental portfolio. The company also adds expertise in opulent add-ons like a 24-hour concierge service that will help Airbnb target wealthier globe-trotters.
President and CEO Joe Poulin founded Luxury Retreats in 1999 after travelling to Barbados while working as a web developer. He says the high-end accommodations he experienced there inspired him to market luxury rentals online.
âI had a cook, a maid, a driver, a butler and I definitely didnât grow up that way,â he told CTV Montreal. âI thought, âWell, I could be building these websites for these owners or maybe I could build my own website.ââ
Like many early entrants in the technology space, Poulin says his idea was met with skepticism and rejection from financial backers. After honing a commissions-focused business plan, he started signing up property owners around the world.
â(Itâs been) a many, many year rollercoaster ride,â Poulin said. âItâs constant highs and lows. As long as youâve built a really good product or youâre focused on building the right products..⌠Thatâs always what kept me going. I know weâre building the best.â
Luxury Retreats reportedly rebuffed heftier offers from European hotel giant Accor SA and Expedia Inc. in order to retain greater control of the company. In the short-term, Luxury Retreats will continue to operate as a standalone entity. Poulin says he plans to keep his 250 employees in Montreal.
âI think itâs a great compliment to our team here in Montreal,â he said. âWeâve been very focused on our product and our service and the standards that weâve built over the years. How we inspect our properties, it was a testament to that. Airbnb said âLook, we think you guys do an extremely good job.ââ
Montreal Mayor Denis Coderre called the deal an example of the cityâs reputation as an âinnovation city.â
âThis proves that Montreal, as a large metropolis, is open to the sharing economy when it is done correctly,â he said in an Airbnb media release. âHaving recently met Brian Chesky (Airbnbâs CEO) and Joe Poulin, I am convinced that they will find in Montreal an ideal place to invest and continue their activities.â
With a report from CTV Montrealâs Cindy Sherwin