Travel distribution platform TBO Tek Limited has announced that its step-down subsidiary TBO LLC will acquire Classic Vacations LLC, a US-based luxury travel operator, for up to $125 million in an all-cash transaction.
As per regulatory filings, TBO Tek will extend an inter-corporate loan of up to ₹350 crore ($40 million) to its wholly owned unit Tek Travels DMCC to help fund the buyout. Additionally, the board has cleared a letter of comfort and corporate guarantee in favour of Catalyst Trusteeship, enabling TBO LLC to secure credit lines of up to $70 million from Standard Chartered Bank.
Founded in 2005, Classic Vacations specializes in high-end tours and travel across the US. The company reported $111 million in net sales in 2024 and maintains a strong network of premium travel advisors, long-standing relationships with US consortia, and access to luxury travel supply.
TBO Tek said the move is in line with its global growth plans, aimed at strengthening its foothold in the US luxury travel segment. Once completed, Classic Vacations will operate as a wholly owned subsidiary of TBO LLC, making it a step-down subsidiary of TBO Tek.
The deal is projected to close by the first week of October 2025, subject to customary approvals and conditions.
In Q1 FY26, TBO Tek’s operating revenue grew 22% year-on-year to ₹511 crore, compared to ₹418 crore in Q1 FY25, while profits rose marginally by 3% to ₹63 crore.
This acquisition marks another notable consolidation in the hospitality sector. Just last year, OYO acquired G6 Hospitality—operator of Motel 6 and Studio 6 brands—from Blackstone Real Estate for $525 million.
Disclaimer:
StartupByDoc maintains editorial independence. While some investors in Venturi Partners may also hold stakes in companies we cover, it does not influence our reporting or analysis in any manner.
Learn to build your founder brand at StartupByDoc.com