SiteMinder (SDR) is a leading hotel software platform that connects accommodation providers with online travel agents, booking channels and guests, helping maximise occupancy and revenue. The stock surged +10% on Wednesday, extending its strong but volatile recovery from recent lows – not one for the faint-hearted! We discussed SDR in detail a few weeks ago here, after they launched “ SiteMinder Powered”, which was well received by the market.
Earlier in the year, SiteMinder delivered a strong first half, with revenue rising 26% to $131 million and underlying EBITDA more than doubling to $12 million as customer growth, higher revenue per property and a surge in transactional revenue drove operating leverage. Importantly, losses continued to narrow, with the company adding 2,900 net hotel properties during the period and remaining on track to achieve breakeven profitability in FY27.
From an investment perspective, SDR remains a higher-growth travel/technology stock, meaning it’s at the mercy of the “AI Disruption Trade” but with profitability due in FY27, this $1.2bn business is good value for the level of growth on offer, and we think their recent pivot through SiteMinder Powered is a sensible evolution, mitigating some of the AI disruption threat. While AI may increasingly influence travel discovery and recommendations, SiteMinder’s platform remains the infrastructure connecting hotels, rates and inventory to booking channels, making it arguably a key beneficiary rather than a victim of the AI shift.
- We still like the risk/reward towards SDR around current levels, still ~50% below the 2025 peak – MM is long SDR in the Emerging Companies Portfolio.
MM is long and bullish towards SDR around $4
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