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After growing from a simple list of ideal hotel features to a thriving online platform for booking boutique hotels and villas, Mr & Mrs Smith has been acquired by US hotel giant Hyatt for £53 million. Founders Tamara and James Lohan, who started the company 20 years ago, are set to enjoy a significant payday as the travel industry experiences a massive surge in bookings post-pandemic. The Lohans owned 15% of the company, with the remainder held by a mix of angel, private, and retail investors.
In 2022, Mr & Mrs Smith generated revenues of £128 million, up from £81 million in 2021, and the company is projecting sales of £150 million this year. Featuring anonymous reviews from experts and celebrities, such as actress Cate Blanchett, author Pandora Sykes, and fashion designer Stella McCartney, the platform currently offers stays at 1,500 boutique hotels and locations to over one million regular customers.
The surge in bookings can be attributed to pent-up demand and accumulated savings during the lockdown periods. Antonio Fellino, managing director of Travel Republic, one of the UK's biggest travel agencies, stated that this January felt the "closest to a normal sale period since before the pandemic." Fellino added that there was significant growth in popular destinations such as Morocco and Thailand, as travelers sought familiar experiences.
Barrhead Travel, a travel agency, also reported record-high demand at the start of the year, with customers' desire to travel remaining undeterred by the cost-of-living crisis. Ryanair, a leading airline, experienced its busiest weekend ever, selling over two million seats during January 7 and 8.
As part of the acquisition, more than 120 staff members, including Tamara Lohan, will join Hyatt's commercial services team. Lohan will remain chief executive and report to Mark Vondrasek, Hyatt's chief commercial officer, while her husband will continue as chief creative officer. Lohan expressed her excitement about having someone "to help her steer" the company through its next phase of growth.
Despite economic challenges, luxury travel operators are enjoying a record start to the year, with high-end companies such as Kuoni, One&Only, Scott Dunn, and Abercrombie & Kent reporting strong sales. This success is attributed to customers being more insulated from the cost of living crisis and having accumulated savings during the pandemic when international travel was restricted.
Expedia's 2023 travel trends report found that optimism within the travel industry was now at its highest since the start of the pandemic. With more destinations dropping their Covid entry restrictions, long-haul holidays have become increasingly popular among luxury travellers.
In conclusion, the acquisition of luxury hotel guide Mr & Mrs Smith by Hyatt for £53 million highlights the ongoing boom in the travel market, particularly in the luxury sector. As the industry continues to recover from the pandemic, the success of luxury travel operators demonstrates the resilience and optimism within the market. The strong performance of these operators bodes well for the future of the travel industry and suggests a return to pre-pandemic levels of demand.
This story was first published in Financial Times UK.
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