Hostaway – a leading all-in-one vacation rental software and management system – announced it had raised a $365 million strategic growth investment led by General Atlantic, with participation from existing investor PSG Equity. And Hostaway plans to partner with General Atlantic and PSG Equity to propel further its growth strategy, such as international expansion, product development, and AI initiatives.
Upon the deal’s completion, General Atlantic and PSG Equity will both be significant minority shareholders in Hostaway, and the investment will mark the largest transaction to date in Hostaway’s market segment.
Launched in 2015 by Marcus Räder, Saber Kordestanchi, and Mikko Nurminen, Hostaway enables short-term rental owners and managers to automate and simplify property management. The company helps property managers scale and grow their businesses through one platform with hundreds of API connections and integrations.
General Atlantic’s funding follows a period of significant company growth, with Hostaway benefitting from PSG Equity’s backing since 2023. And the company’s integrated marketplace boasts over 200 marketplace partners, curating premier vacation rental software and tools within the industry for customers with properties in over 90 countries. Hostaway’s fully remote workforce includes over 230 employees across 44 countries.
As a comprehensive vacation rental software and management system, Hostaway enables short-term rental property owners and managers to manage all aspects of their vacation rental business, including across:
— Property Management – An easy-to-use property management system for vacation rentals to measure performance and manage inquiries, recurring guests, distribution channels, owners, and staff in one place.
— Channel Management – Hostaway’s proprietary channel manager is the platform’s core, providing sophisticated two-way API connection to all major online travel agencies, including Airbnb, VRBO, Booking.com, Expedia, TripAdvisor, Marriott, and Google Travel.
— AI – Powerful tools that enhance your listings and guest communications, including AI-suggested message responses, enhanced listing descriptions for SEO, and more.
— Automation Tools – Automates repetitive tasks with automated messages, reviews, tasks, and payments.
— Analytics & Reporting – Customizable reports give property managers valuable insights into their business.
— Communication – All the communication tools a property manager needs, with an industry-leading unified inbox with support for email, text messages, and WhatsApp.
— Marketing – Market properties with easy booking website set up, WordPress plugin, coupon management, website builder, and direct booking tools.
— Operations – Supports daily operations with automation and features such as guest invoicing, flexible payment processing, and task management services.
Hostaway became the first property management and channel management software company to earn the highest partnership designations from the three leading online travel agencies (Airbnb, VRBO, and Booking.com), and it also currently has preferred relationships with Google, Expedia, and Homes & Villas by Marriott.
The company has recently launched several tools and add-ons to address customer needs further, including
1.) Dynamic Pricing by Hostaway – An automated solution to help customers maximize revenue
2.) Hostaway Capital – Provides flexible loans specially catered to the property management sector
3.) Hostaway Insurance – Provides coverage for property damage during a rental period; and
4.) Smart Lock integration – Further streamlines the property management and guest experience. Hostaway has also integrated AI into its automation tools to support property owners and managers across guest messaging, content creation, and language translation.
The short-term rental sector is growing rapidly. And the market continues to professionalize with a growing number of property managers looking for software solutions to help expand and manage their increasingly complex businesses. Hostaway continues to capitalize on these tailwinds and demand through geographic expansion to key markets – such as building on its presence in France, Italy, and Spain. The company also plans to utilize General Atlantic’s expertise in scaling companies at the intersection of vertical software, integrated payments, and the travel and hospitality sector globally.
William Blair and Cambon Partners acted as financial advisors to Hostaway.
KEY QUOTES:
“We are excited to partner with General Atlantic, a firm with deep global experience in our sector. This transaction is a critical milestone that will enable Hostaway to expand our commitment to delivering continued product innovation and invest further in AI-driven tools as we support our customers in growing and managing their businesses. Also, we are excited to leverage this investment to further expand our footprint across the world, especially in key markets like France, Spain, and Italy. We have identified like-minded and decisive partners in General Atlantic and PSG Equity and are thrilled to collaborate with them on the next stage of our journey.”
- Marcus Räder, CEO and Co-Founder of Hostaway
“Hostaway has emerged as a category leader with a differentiated product addressing the distinct needs of short-term rental property managers, a dynamic and growing industry. We greatly admire the company’s high velocity of innovation and dedication to supporting its customers, and we look forward to working with this impressive team.” Matthew Dorr, Principal at General Atlantic, added, “We believe Hostaway is poised for continued growth, and we are thrilled to work alongside PSG to support the company across a number of value creation initiatives.”
- Raph Osnoss, Managing Director at General Atlantic
“Our journey with Marcus and the wider Hostaway team began in 2023 and we have continued to be impressed with the quality, offering and strong growth of the platform. Hostaway has already grown three-fold since making our investment, which is a testament to the company’s deep expertise in the short-term rental property space and the strong global customer demand for its products. There is a lot to be proud of and we are excited to continue to support Hostaway in this next chapter alongside General Atlantic.”
- Edward Hughes, Managing Director at PSG
