Hotel Data Giant STR Acquired for $450 Million
Skift Take
Data and analytics are not just vital in the contemporary hospitality ecosystem but also big business. CoStar's acquisition of STR shows the overlap between traditional commercial real estate and the global hotel market.
In the competitive world of global hospitality, data and intelligence are often key to hoteliers maximizing the performance of their properties in a dynamic marketplace.
Commercial real estate information provider CoStar Group will acquire STR for $450 million in an all-cash deal. Formerly known as Smith Travel Research before a recent rebrand, STR is the premier global provider of data on hotel performance and market dynamics. The company is headquartered in Henderson, Tennessee, and employs 370 workers in 15 countries.
STR expects to post strong revenue of $64 million in 2019, with about $16 million in profit, according to a press release announcing the deal. CoStar expects 20 percent revenue growth per year in the next few years after the deal closes in late 2019. The multiple on the deal shows the value of information and data companies in the travel and real estate ecosystems.
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