Corporate Travel Management 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 AUD$50 million (HKD300m).
The purchase of 75.1 per cent of Lotus will take effect from October 2, 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 AUD$2.5 billion (HKD15bn).
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
“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 AUD$4 million (HKD24m) 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 AUD$125m (27% growth on
About Corporate Travel Management (CTM)
CTM is an award-winning provider of innovative and cost-effective travel management solutions to the corporate market. Its proven business strategy combines personalised service excellence with client facing technology solutions to deliver a return on investment to clients. Headquartered in Australia, the company employs approximately 2,700 FTE staff globally (including Lotus) and provides local services solutions to clients in more than 70 countries.