Transaction Rationale
- The online accommodation bookings market has proven to be a massive opportunity. Gross bookings of the European hotel sector are estimated to total about €85 billion per annum, of which online bookings currently account for around €14 billion
- The European budget accommodation sector itself is currently worth approximately €15 billion per annum and is rapidly growing, in part due to the expansion of low cost carriers
- The fragmented nature of accommodation suppliers and their low online penetration presents EnGrande with a strong opportunity to accelerate the growth of its network of providers
- A key part of the growth plan is a shared commitment to grow the platform to become the leader in the budget accommodation category
- Palamon Capital Partners is a leading European mid-market private equity firm
- The terms of the transaction were not disclosed
Overview of EnGrande
- EnGrande S.L. (“EnGrande” or “the Company”) was established in 2003 by founder and CEO John Erceg to generate bookings for budget hotels and apartments
- Following a period of rapid expansion across Europe and selected cities in America and Asia-Pacific, the Company now has more than 7,000 establishments worldwide directly contracted to its service and processes more than €80 million of bookings per annum
- EnGrande’s websites, which include www.budgetplaces.com, and a network of dedicated 30’s city websites, such as www.london30.com and www.amsterdam30.com, are aimed at cost-conscious, mostly European leisure and business travellers
- The Company employs 85 staff and is headquartered in Barcelona with offices in New York and Dublin
- The EnGrande team is passionate about finding new well-located, cheap and clean establishments, partnering with hoteliers to fill their rooms profitably with a unique easy-to-use backoffice system which offers maximum administrative efficiency
NOAH Advisors’ Role
- EnGrande decided to partner with NOAH Advisors, following inbound interest to acquire the Company
- EnGrande and NOAH Advisors worked together intensively on exploring a wide range of strategic alternatives, while the Company grew from strength to strength was able to scale its platform rapidly
- NOAH Advisors acted as exclusive M&A financial advisor to EnGrande