Hostaway – a leading all-in-one vacation rental software and management system – recently announced a $175 million capital raise. This funding round represents the largest in the sector to date and was led by PSG, a leading growth equity firm partnering with software and technology-enabled services companies to help accelerate their growth.
The company was launched in 2015 by Marcus Rader, Saber Kordestanchi, and Mikko Nurminen to automate and simplify the process of property management, helping property managers scale and grow their businesses. And Hostaway has increased its revenues by more than 10x since 2021 and achieved strong profitability alongside its growth profile. Now Hostaway customers collectively manage more than 100,000 properties in more than 100 countries.
Hostaway has over 100 partners in its Marketplace, one of the highest numbers in the industry. And the company became the first property management and channel management software company to earn the highest partnership designations from the 3 leading online travel agencies, Airbnb: VRBO, and Booking.com. And the company also currently has preferred relationships with Google, Expedia, Tripadvisor, and Homes & Villas by Marriott.
As a comprehensive vacation rental software and management system, Hostaway enables property managers to manage all key aspects of their vacation rental business, including:
— Property Management – An easy-to-use property management software for vacation rentals to manage inquiries, recurring guests, distribution channels, owners, and staff in one place.
— Channel Management – A sophisticated two-way API connection to all major online travel agencies, including Airbnb, VRBO, Booking.com, Expedia, TripAdvisor, Marriott and Google Travel.
— Automation Tools – Automates every repetitive task with automated messages, reviews, tasks, and payments.
— Analytics & Reporting – Customizable reports provide property managers valuable insights into their business.
— Communication – All the communication tools a property manager needs with an industry-leading unified inbox.
— Marketing – Market properties with easy booking website setup, WordPress plugin, coupon management, and website builder tools.
The global opportunity in the vacation rental management software market is known as being large and growing with a total addressable market of $2 billion. Domestic leisure and travel categories are continuing to rebound in Europe and North America and small property owners are increasingly outsourcing to property managers and digitizing their operations. Along with its established strength in Europe and North America, Hostaway’s customer base is further enhanced by a growing presence in Asia, the Middle East, South America, and Oceania.
What the funding will be used for: Hostaway aims to use the proceeds to propel its growth trajectory, expand globally, grow headcount, strengthen customer service, enhance onboarding processes, and pursue both organic and inorganic opportunities to expand market share.
KEY QUOTES:
“We are thrilled to partner with PSG, as we continue to elevate the vacation rental industry and unlock value for property managers beyond what had been thought possible. We have operated with incredible speed and efficiency, balancing growth with our current strong profitability, and this investment represents a significant milestone in our journey toward global market leadership. We’ve come a long way, but we are just getting started. The opportunities are endless!”
— Marcus Rader, CEO and Co-Founder of Hostaway
“We are impressed with the quality of the Hostaway team, their vision and execution in building what is, in our view, a highly differentiated category leader with multiple levers of value creation. We believe the company has a significant opportunity to lead this industry, as it continues to scale its integrated platform, expand globally and help its customers meet the growing demand in the short-term rental market. We look forward to partnering with Hostaway in this new exciting chapter.”
— Edward Hughes, Managing Director at PSG
