DALLAS, Oct 9, 2002 (BUSINESS WIRE) –Hotels.com (Nasdaq:ROOM), the largest specialized provider of discount lodging worldwide, today announced that it has completed the acquisition of Turbotrip, a New Orleans-based hotel consolidator, for an undisclosed amount of cash, plus contingent consideration based on Turbotrip’s future performance.
The company will operate as a wholly-owned subsidiary of Hotels.com. The acquisition is expected to be at least two cents accretive to Hotels.com’s adjusted earnings per share in 2003.
Concurrent with the acquisition, Turbotrip entered into a 10-year affiliate agreement with http://www.neworleans.com, under which Turbotrip is the exclusive third-party hotel booking engine on the site. NewOrleans.com is one of the most popular websites for information about New Orleans, with up to 350,000 unique visitors to the site each month.
Founded in 1992, Turbotrip specializes in selling value-priced hotel rooms in New Orleans and 180 other U.S. destinations, both over the Internet and through its New Orleans call center. Like Hotels.com, Turbotrip reaches consumers through its own website (www.turbotrip.com), and also through hundreds of third-party affiliated websites that are powered by Turbotrip’s hotel booking engine. The company is one of the largest sellers of hotel rooms in New Orleans.
David Litman, Chairman and Chief Executive Officer of Hotels.com, commented: “Turbotrip is a profitable, growing and highly focused hotel consolidator that is well established in the New Orleans hotel community. We have admired them as a competitor in the affiliate marketing arena and now welcome them to the Hotels.com family. We expect to work closely with Chris Lopez and his team as Turbotrip continues its rapid and profitable growth.”
Bob Diener, President of Hotels.com, added: “We have often stated our interest in acquiring other well-managed hotel consolidators, such as the purchase of AceNet in Atlantic City last year. The addition of Turbotrip complements and strengthens our existing hotel business in New Orleans, which has historically been one of our most popular leisure destinations. Turbotrip also brings to us a large new base of affiliates through which to sell our hotels and vacation rental products in other destinations.”
Hotels.com (Nasdaq:ROOM), is the largest specialized provider of discount lodging worldwide, providing service through its own websites (including http://www.hotels.com and others), more than 28,000 affiliated websites, and its toll-free call centers (1-800-2-HOTELS). Hotels.com provides accommodations to travelers at over 6,400 properties in more than 240 markets in North America, Europe, the Caribbean and Asia. The company offers a one-stop shopping source for hotel pricing, amenities and availability, and also specializes in providing travelers with accommodations for sold-out periods. Hotels.com is a majority-owned subsidiary of USA Interactive (Nasdaq:USAI).
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