The venture capital funds Cinven, EQT and Canada Pension Plan Investment (CPPI) have decided to inject €430 million into Hotelbeds, the Spanish company that they acquired in 2016 for €1.2 billion from the tour operator TUI. The private equity firms are going to contribute this amount to save the world’s largest bed bank from bankruptcy, according to El Confidencial. The firm employs 5,000 people worldwide.
The funds have agreed to take out a loan to alleviate the slump to zero of the firm’s revenues due to the mobility restrictions imposed almost everywhere to prevent the spread of Covid-19. Hotelbeds has been unable to cover the ordinary costs of its platforms, which serve 180,000 hotels on five continents.