The Priceline group, the parent company of Booking.com and Kayak, has taken minority stake in Hotel Urbano, investing $60 million to expand its footprint in the Brazil market.
According to the terms of the deal, Hotel Urbano will exclusively use the Priceline Group’s Booking.com source hotels outside Latin America. The Priceline Group, like Expedia Inc., has had a base in the region for many years but this deal is expected to improve Priceline’s position in Latin America.
“Brazil is a dynamic, fast-growing market and both of us are growing very rapidly within this region,” said Darren Huston, President and CEO of The Priceline Group. ” We are excited to partner with Hotel Urbano to help globalize their offerings and let their customers experience the best of what both of us have to offer.”
The partnership benefits both the parties and they are – the partnership will give consumers in Brazil and Latin America to get more access to more great accommodations around the world through The Priceline Group’s network. Hotel Urbano will utilize Booking.com to power its notn-LATAM retail hotels product on an exclusive basis. Also, The Priceline Group being the preferred provider for Hotel Urbano’s global packages as part of the commercial agreement will begin immediately although it will take few months to fully implement it.
Despite the recent economic instability, the market is still expected to cross $34 billion in 2016. It is also said 2016 Olympics could also be the reason for this strategic partnership for Priceline.
Joao Ricardo and Jose Eduardo Mendes, co-founders of Hotel Urbano said, “The Priceline Group has truly global scale and partners with the world’s best and most diverse accommodations worldwide – from hotels to villas and beyond.” They also added, “We are not only committed to bringing our customers access to the best experience out there, we are committed to expanding our presence in Latin America and look forward to having this unique partnership with The Priceline Group as our first major step in this regard.”