Luxury Travel Acquisition by TBO Tek Limited

Luxury travel distribution platform TBO Tek Limited is set to acquire Classic Vacations LLC, a prominent US-based luxury travel firm, for an amount reaching up to $125 million through an all-cash transaction. Recent regulatory data indicates that TBO Tek will provide an inter-corporate loan of up to Rs 350 crore (approximately $40 million) to its fully owned subsidiary, Tek Travels DMCC, which will facilitate the acquisition financing.

Funding and Financial Support

Additionally, the company has authorised the issuance of a letter of comfort and a corporate guarantee to Catalyst Trusteeship, endorsing credit facilities totalling up to $70 million from Standard Chartered Bank for TBO LLC.

About Classic Vacations

Established in 2005, Classic Vacations operates within the luxury tours and travel segment throughout the United States. The company reported net sales of $111 million in 2024 and has cultivated a robust network of high-value travel advisors, strong relationships with US consortia, and access to exclusive travel resources.

TBO Tek’s Strategic Expansion

TBO Tek noted that this acquisition aligns with its global growth strategy aimed at enhancing its footprint in the luxury travel sector of the US market. Upon completion of the acquisition, Classic Vacations will become a fully owned subsidiary of TBO LLC, representing a significant step-down subsidiary of TBO Tek.

Closing Timeline and Financial Performance

The deal is anticipated to conclude in the first week of October 2025, contingent upon standard closing conditions. In its latest financial report, TBO Tek demonstrated a 22% increase in operational revenue, rising from Rs 418 crore in Q1 FY25 to Rs 511 crore in Q1 FY26. Moreover, the company recorded a slight 3% rise in profits, totalling Rs 63 crore.

Previous Acquisitions in the Hospitality Sector

This acquisition marks the second major deal in the hospitality field, following OYO’s acquisition of G6 Hospitality, which manages the Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million last year.