HomeToGo Buys Stake in Two German Companies for $34 Million

HomeToGo, the short-term rental comparison-shopping engine, acquired a 51% majority stake in two German companies: KMW Reisen and Super Urlaub. 

This is Germany-based HomeToGo’s biggest deal ever, valued at around €31 million ($34 million). If the deal closes as expected in January, the brands would be included in HomeToGo’s financial reporting starting with first quarter earnings. However, the company will not break out the subsidiaries’ revenue. 

HomeToGo has the option to acquire 100% of the companies within five years. 

The deal includes the purchase of Kurz Mal Weg (owned by KMW Reisen) and Kurzurlaub (owned by Super Urlaub), and would strengthen HomeToGo’s standing in cities, wellness, and dining segments — the company’s mainstay is currently in rural vacation areas.  

The acquisition could improve HomeToGo’s vacation rental supply with added services, allowing for future cross-selling and distribution across platforms. It would also introduce a new supply channel for its B2B segment HomeToGo Pro. The company expects this deal to enhance its shoulder season and weekend travel demand as well as supply in wellness spas and sport destinations, for example.

HomeToGo Chief Investment Director Bodo Thielmann said during an investor call that the brands will continue to operate autonomously.

HomeToGo’s Deals Strategy

In an interview with Skift last week, CEO Patrick Andrae explained how he thinks about potential deals.

“For us, profitable companies as a target, we like companies that can work on their own, so we can add them to the group without relying on synergies,” Andrae said. “If you see our past acquisitions, most of them have been EBITDA profitable or being on the brink of that. It’s also a good filter, because we can see that we get something into the group that is not realized on synergies.”

Based in Leipzig, Germany, KMW Reisen runs an online marketplace for short trips in Germany, Austria and Switzerland region under the brand name Kurz Mal Weg. Founded in 2001, it offers over 19,000 travel options in Germany and neighboring countries.

Meanwhile, founded in 2005, Super Urlaub specializes in bundled packages for city breaks, wellness trips, and seaside vacations in Germany.