Airbnb acquires Luxury Retreats

Airbnb Inc bought Luxury Retreats in its biggest acquisition yet as the apartment-rental website takes steps toward becoming a full-service global travel company.

Airbnb unveiled the acquisition of the Canadian manager of high-end rentals and services on Thursday, declining to disclose financial terms. The cash and stock deal was worth roughly $300 million, people familiar with the matter said. Bloomberg reported the two were in talks last week.

Accor SA, Europe's biggest hotel operator, and Expedia Inc, the global online travel giant, also bid for Luxury Retreats, people familiar with the matter said.

Those companies' cash offers were bigger, but Luxury Retreats decided on Airbnb partly because its founder, Joe Poulin, foresaw having more control than at those other firms, said the people, who asked not to be identified because the discussions were private.

Luxury Retreats, with more than 4,000 properties around the world, has built a concierge service that Airbnb will be able to offer to its customers.

Premium vacation-home rentals are a key growth area for the travel industry, which seeks greater profit margins on properties rented to wealthy globe-trotters.

Bloomberg