M3 – a leading hospitality accounting software company – announced it has signed a definitive agreement for a majority investment from Blackstone Growth and affiliated funds. This funding will help to accelerate the company’s growth by enhancing new product expansion and supporting the adoption of M3’s software, which enables hotel operators to run more efficiently and effectively. AAHOA (representing nearly 20,000 hotel owners and 60% of hotels across the United States) will also make its first-ever strategic investment along with Blackstone.
Launched in 1998 by hospitality industry veteran John McKibbon to address the accounting needs of his own family’s hotel management company, M3 grew into a leading hospitality-focused back-office accounting software platform that serves as the system of record for financial data for more than a thousand hotel operators and management companies. And it currently offers technological solutions including accounting, labor management and business intelligence to over 8,000 properties across North America.
The terms of the deal were undisclosed. Carlton Fields, P.A., served as legal counsel to M3 and Houlihan Lokey has provided assistance to M3 in connection with the transaction. And Evercore served as exclusive financial advisor to Blackstone and Kirkland & Ellis served as legal counsel to Blackstone.
KEY QUOTES:
“Blackstone’s background in hospitality made them the natural choice as our first equity partner. Together, we look forward to propelling our innovation and growth to best serve our customers in an era of continued technological advancement.”
- John McKibbon, Founder of M3
“M3 has become a leading finance and accounting software platform for countless independent and family owned hotel operators, as well as some of the largest hotel management companies, that have relied on its technology to support the professionalization and scale of their businesses. As M3’s first institutional capital partner, we’re excited to harness Blackstone’s deep expertise and network within the real estate and technology sectors to help enhance its product offering to better serve new and existing companies as M3 continues to grow.”
- Ramzi Ramsey, a Managing Director at Blackstone
“For over 25 years, M3 has been focused on delivering a comprehensive solution while providing world class support to our customers. We remain steadfast in our commitment to serving our customers and are thrilled to partner with Blackstone to continue to scale our vision, team, and culture.”
- Allen Read and Casi Johnson, CEO and President of M3
“M3 has built an enviable market position thanks to its robust technology and customer-centric approach. We are eager to build upon this strong foundation and support M3 in its next phase of growth and expansion in the broader hospitality market.”
- Kevin Chang, a Principal at Blackstone
“AAHOA is excited to make its first strategic investment alongside Blackstone, a move that will significantly benefit our members and the entire hospitality industry. This partnership with M3 will bring AAHOA Members access to advanced technology and innovative solutions that can enhance operational efficiency and drive growth. We are committed to empowering our members with the tools and resources needed to succeed in an evolving market, and this collaboration marks a pivotal step toward achieving that goal.”
- Miraj S. Patel, AAHOA Chairman
