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 Airbnb鈥檚 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 Airbnb鈥檚 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.
鈥淚 had a cook, a maid, a driver, a butler and I definitely didn鈥檛 grow up that way,鈥� he told CTV Montreal. 鈥淚 thought, 鈥榃ell, I could be building these websites for these owners or maybe I could build my own website.鈥欌��
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.
鈥�(It鈥檚 been) a many, many year rollercoaster ride,鈥� Poulin said. 鈥淚t鈥檚 constant highs and lows. As long as you鈥檝e built a really good product or you鈥檙e focused on building the right products..鈥� That鈥檚 always what kept me going. I know we鈥檙e building the best.鈥�
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.
鈥淚 think it鈥檚 a great compliment to our team here in Montreal,鈥� he said. 鈥淲e鈥檝e been very focused on our product and our service and the standards that we鈥檝e built over the years. How we inspect our properties, it was a testament to that. Airbnb said 鈥楲ook, we think you guys do an extremely good job.鈥欌��
Montreal Mayor Denis Coderre called the deal an example of the city鈥檚 reputation as an 鈥渋nnovation city.鈥�
鈥淭his proves that Montreal, as a large metropolis, is open to the sharing economy when it is done correctly,鈥� he said in an Airbnb media release. 鈥淗aving recently met Brian Chesky (Airbnb鈥檚 CEO) and Joe Poulin, I am convinced that they will find in Montreal an ideal place to invest and continue their activities.鈥�
With a report from CTV Montreal鈥檚 Cindy Sherwin
