Sunhotels, the European bedbank of Australia’s Webjet, is taking a big chunk of UK tour operatorThomas Cook‘s hotel contracting and supply business.

In a statement it said that it is paying Thomas Cook £21 million ($27.5 million) for “a long-term contract.” Other details shared with analysts are that it will get a management fee from Thomas Cook during the two-year transition. From 2019, the deal will switch to Thomas Cook paying Webjet “a volume-based service fee.”

As well as the contracting side of the deal, Sunhotels will make its existing 75,000 properties available to the entire Thomas Cook business. Sunhotels currently works with it in the Nordics.

“We are very excited about this agreement as it provides a unique opportunity to significantly expand our B2B footprint in Europe over the next 5 years and beyond,” said Webjet’s MD John Guscic.

The news came at the same time as Webjet released its full year results for the period ending 30 June. The topline figures  — TTV up 28.8% to A$1,630 million ($1,240 million), revenue up 29.1% to AUS$155.3 million ($118 million) and EBITDA up 31.4% to $36.6 million ($27.9 million) — represents its best-ever 12-month performance.

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