Travel Boom Fuels IPO Plans for Companies in Hospitality Sector

Travel companies are capitalizing on the post-pandemic tourism boom and rising consumer spending by listing on the stock market. Recent examples include Travel Food Services' ₹2,000 crore listing on BSE and Cordelia Cruise Operator Waterways Leisure Tourism's ₹727 crore IPO filing with Sebi. The hospitality industry is also expected to see a surge in IPOs this year, with LaRiSa Hotels and Resorts filing its DRHP for an IPO expected to take place within a quarter.

Travel companies are seizing the opportunity to capitalize on the post-pandemic tourism boom and rising consumer spending by listing on the stock market. Recent examples include Travel Food Services' ₹2,000 crore listing on BSE and Cordelia Cruise Operator Waterways Leisure Tourism's ₹727 crore IPO filing with Sebi. The hospitality industry is also expected to see a surge in IPOs this year, with LaRiSa Hotels and Resorts filing its DRHP for an IPO expected to take place within a quarter.

One of the most notable players in this space is Klook, a Hong Kong-based travel tech unicorn. Klook is reportedly preparing for a U.S. IPO by late 2025, backed by SoftBank's Vision Fund. With a $1 billion valuation achieved in 2021, Klook's IPO could be one of the year's most intriguing listings. The company has emerged as a dominant player in Asia's travel ecosystem, offering over 500,000 experiences across 2,700 destinations. Post-pandemic, its gross merchandise value (GMV) soared to $3 billion in 2023, with 50 million monthly active users. Klook's secret? Hyper-localization and AI integration [1].

The timing of Klook's IPO is favorable. The IPO market is rebounding strongly in 2025, fueled by tech optimism and lower interest rates. The NASDAQ's P/E ratio has rebounded to 40.5x, and AI-driven companies like Databricks and Stripe are leading the charge. Klook's focus on Asia-Pacific's travel recovery is a tailwind. The region's tourism revenue is projected to hit $1.2 trillion by 2025, with China's border reopening and Southeast Asia's visa-free policies driving demand. An IPO would give Klook the liquidity to expand further—think new markets, partnerships, and R&D in AI [1].

SoftBank's backing is both a blessing and a risk. Its portfolio includes ARM Holdings (a $75 billion post-IPO success) and WeWork (a $40 billion valuation collapse). Klook's fate hinges on lessons from both. Strengths include SoftBank's network providing access to capital and strategic partnerships, and Klook's profitability and GMV growth mirroring ARM's disciplined execution. Weaknesses include potential pressure to pivot aggressively into AI and enterprise tech, and regulatory hurdles in Asia [1].

Klook's valuation could surpass $4–5 billion in an IPO, based on its GMV growth and AI-driven scalability. However, risks loom, such as a slowdown in Asia's tourism or a tech sector correction. Investors should demand visibility into unit economics and regulatory clarity [1].

Smart Powerr Corp., a company focused on waste energy recycling and energy efficiency solutions within energy-intensive industries in China, also announced a 1-for-10 reverse stock split to comply with Nasdaq listing requirements, effective July 18, 2025. This split will reduce the company’s outstanding shares from approximately 25.3 million to about 2.53 million [2].

The reverse stock split aims to bring Smart Powerr Corp. into compliance with Nasdaq's minimum bid price requirement, potentially stabilizing its stock listing and investor confidence. However, it may also suggest decreasing market capitalization and could lead to increased share prices, potentially deterring smaller investors and reducing overall trading volume.

In conclusion, travel companies are capitalizing on the post-pandemic tourism boom by listing on the stock market. Klook's U.S. IPO and Smart Powerr Corp.'s reverse stock split are notable examples of this trend. Investors should carefully consider the risks and opportunities associated with these listings.

References:
[1] https://www.ainvest.com/news/klook-listing-bold-bet-travel-tech-post-pandemic-comeback-2507/
[2] https://www.quiverquant.com/news/Smart+Powerr+Corp.+Announces+1-for-10+Reverse+Stock+Split+to+Comply+with+Nasdaq+Listing+Requirements