Pavilion has launched as a national vacation rental company, bringing together 20 locally led businesses that collectively manage more than 5,000 homes across the U.S. The platform currently welcomes approximately 50,000 guests each month.
Pavilion’s structure is designed to allow local vacation rental companies to maintain their local leadership and market identity while gaining access to shared infrastructure, technology, data and other resources available through a larger national organization.
The leaders of Pavilion’s local companies become long-term shareholders in the combined business.
Together with Pavilion’s management team, those local leaders own a majority of the company.
Pavilion is positioning that ownership structure as a way for founders to continue participating economically in the future growth of both their local operations and the broader national platform.
Behind its local companies, Pavilion provides shared technology, data, owner reporting, accounting, revenue management, business development, purchasing and insurance capabilities.
Its management team includes executives with previous experience at Compass, Bridgewater Associates, Inhabit, Grand Welcome, Wyndham and Wheelhouse.
Pavilion is also actively seeking additional local vacation rental businesses across the U.S. as it expands the platform.
Its investors include TZP Group, investment funds managed by HPS Investment Partners, which is part of BlackRock, and Capital Dynamics.
PGIM, the global asset management business of Prudential Financial, served as the primary lender for the Pavilion platform.
Pavilion’s 20 founding local companies include 30A Vacay, Akers Ellis, Beach Getaways, Blue Creek Cabins, Compass Resorts, Destin Pointe Realty, Enjoy Unique Stays, Executive Villas, Host & Keep, Kabino, Maui Paradise Properties, Myrtle Beach Destinations, Panhandle Getaways, Premium Beach Condos, Rent in Myrtle, Salt Water Vacations, Scenic Stays, Sea Mountain Vacations, Vacay Rental Network and Wild Oak Telluride.
Blue Creek Cabins, Destin Pointe Realty, Premium Beach Condos and Rent in Myrtle have since merged with one of the other local companies, meaning Pavilion currently operates through 16 local businesses.
Jefferies served as exclusive financial adviser and Cooley served as legal counsel.
KEY QUOTES:
“The people who built these businesses are the core of Pavilion, and they should get the biggest share of the outcome. The typical industry playbook left founders with a small piece of someone else’s company. We’ve been founders in this industry ourselves, so we built the company we would have wanted to join.”
Joe Fraiman, Co-Founder and Chairman of Pavilion
“We look for local companies that have built incredible relationships with their property owners, because those relationships are the heart of this business. We see property owners as business owners. Our job is to put the best service, technology and people in the industry behind them so their business is worth more next year than it is today.”
Lino Maldonado, Co-Founder and CEO of Pavilion
“Pavilion gave me a way to keep building my business while owning a piece of something much bigger. We have the tools and support we need to grow, and the only thing my homeowners have noticed is that we’ve gotten better.”
Steven Chrobak, Founder of Myrtle Beach Destinations
“We’re looking for builders. People who have built something exceptional in their market and want the resources to make it substantially bigger. They are joining a collection of pioneers who own the company together, share what works, and solve problems as a team.”
Brady Stump, Co-Founder of Pavilion
“Great hospitality companies shouldn’t have to choose between what makes them special and the advantages of scale. Pavilion is designed to preserve the local knowledge, hospitality and entrepreneurial leadership that made these companies successful while giving them access to resources that are typically only available to much bigger companies.”
Paul Davis, Partner at TZP Group
