Sabre Corporation announced that it has reached a definitive agreement with TPG to sell the Hospitality Solutions segment to a global alternative investment management firm for $1.1 billion. Sabre can now pay off its debts and concentrate on its core businesses.
Sabre Corporation, a global alternative investment management firm, and TPG announced recently a definitive agreement whereby TPG agreed to purchase Sabre’s Hospitality Solutions in exchange for $1.1 billion cash. The transaction establishes Hospitality Solutions as an independent business with dedicated resources that will allow for growth and expansion of the global core technology platforms for hotels.
Over 40 percent of leading hotel brands in the world use software and solutions from Hospitality Solutions. SaaS-based platforms serve as integrated systems of record for reservations and guest information. This allows hoteliers operate more accurately and efficiently. This is a separate business from Sabre’s B2B hotel distribution business. Sabre continues to invest in this strategic area.
Net of taxes and other fees, the expected cash proceeds are around $960 million. The funds will be used to reduce Sabre’s debt and improve its balance sheet, while maintaining its focus on sustainable long-term growth.
Saber’s recent debt repayments of April 2025 and debt refinancings from December 2024 are the latest strategic financial actions. These actions are intended to strengthen Sabre’s capital allocation framework and improve its capital structure. They also aim to enhance its ability of refinancing remaining debt maturities. These actions are in line with Sabre’s goal of driving long-term value for shareholders by optimizing Sabre’s product portfolio and accelerating the path to its long-term net-leverage target of 2.5x – 3.5x.
Kurt Ekert stated that the sale for $1.1 billion of Hospitality Solutions is a testament of the transformation achieved by the team over the last few years. Sabre will now be able to focus its efforts on its core airline platforms and IT systems.
Sabre acquired SynXis in 2005, which was the core of their hospitality business. Over the past two decades, the company invested in solutions and capabilities, including Retail Studio. Hospitality Solutions is the central reservation platform for many of the largest and premium hotel brands in the world.
TPG has worked with software companies like Hospitality Solutions that are mission-critical. Such businesses can experience meaningful growth with the right combination capital and operational focus.
Sabre Corporation Board of Directors has approved the transaction. The transaction is expected to be completed by the third quarter 2025. This will depend on the usual closing conditions as well as regulatory approvals. There are no financing conditions attached to the closing.
