Skip to main content
Daily travel & tourism news portal for the Asia-Pacific market since 2012

Regional News

CTM strengthens position in Asia with Lotus acquisition

Author: Tatiana Rokou / Date: Thu, 07/12/2018 - 10:05
1482

The acquisition creates optimum scale for the combined entity to leverage technology, support costs and supplier relationships across a wider base to best enhance long-term sustainable growth in the Asian region.

Corporate Travel Management (CTM) has continued its strategic expansion into the Asian market after acquiring a majority stake in Hong Kong-based Lotus Travel Group Limited (Lotus) in a deal worth GDP28m (AUD$50 million).

The purchase of 75.1 per cent of Lotus will take effect from 2 October 2018 and will result in CTM becoming the largest travel management company in Hong Kong servicing Greater China, with a combined Total Transaction Value approaching GDP1.4bn (AUD$2.5 billion). CTM’s partners in Asia, Ever Prestige Investments Limited (EPI), will acquire the remaining 24.9 per cent through CTM Asia.

The acquisition creates optimum scale for the combined entity to leverage technology, support costs and supplier relationships across a wider base to best enhance long-term sustainable growth in the Asian region.

CTM Managing Director Jamie Pherous said the two firms had a great understanding of each other’s culture and leadership teams, which would allow for a seamless integration process.

Lotus is a long standing and highly regarded travel leader in Hong Kong,” he said. “They meet our strict acquisition criteria and, like CTM Asia, are leaders in travel in the region and enjoy high client and staff retention.

“We are delighted to have Lotus become a key part of our Asian business. Together, we will become a leader in the Greater China market and will be well positioned to enhance our client offering, technology and expertise in this market.”

Having operated for more than 60 years, Lotus is a market leader in Hong Kong across the corporate, B2B, wholesale and MICE markets. It employs 400 staff and has offices in Hong Kong and Greater China.

Chairman and CEO of Lotus, Patrick Kong, said: “We have known the CTM Asia leadership team for many years and have watched CTM Asia build a very strong growth business based on highly personalised service delivery with best-in-class technology solutions.

“We consider that CTM is an excellent fit to enhance our service offering to both current and future clients, while providing exciting new career opportunities for our employees that comes through growth.”

The acquisition will contribute approximately GDP2.25m (AUD$4 million) earnings before interest, tax, depreciation and amortisation (EBITDA) over nine months trading to CTM’s 2019 annual results. Mr Pherous said CTM expected to deliver FY18 results at or slightly above the top end of the previous guidance, at approximately 27% growth on p.c.p.  (AUD$125m).

ABOUT THE AUTHOR

Tatiana Rokou

NEWS EDITOR

Tatiana is the news co-ordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes to monitor the hundrends of news sources of TravelDailyNews Media Network and skim the most important according to our strategy. She holds a Bachelor degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.