- Company is one of the leaders in the vacation rental platform sector a growing market with a $2 billion TAM
- Financial profile includes 10x revenue growth since 2021 and current strong profitability
- Funding aims to accelerate global growth and support organic and inorganic opportunities to expand market share
- Investment represents the largest capital raise in the vacation rental platform sector to date
Hostaway, a leading all-in-one vacation rental software and management system, today announced a $175 million capital raise. The funding 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 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.
Hostaway was founded 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. Hostaway has increased its revenues by more than 10 times since 2021 and achieved strong profitability alongside its growth profile. Today, Hostaway customers collectively manage more than 100,000 properties in more than 100 countries.
Hostaway has more than 100 partners in its Marketplace, one of the highest numbers in the industry. The company 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, Tripadvisor and Homes Villas by Marriott.
As a comprehensive vacation rental software and management system, Hostaway allows property managers to manage all key aspects of their vacation rental business, including:
- Property Management: Easy-to-use property management software for vacation rentals to manage inquiries, recurring guests, distribution channels, owners and staff in one place.
- Channel Management: 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 give 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 set up, WordPress plugin, coupon management and website builder tools.
The global opportunity in the vacation rental management software market is large and growing with a total addressable market of $2 billion. Domestic leisure and travel categories continue to rebound in Europe and North America, and small property owners are increasingly outsourcing to property managers and digitizing their operations. In addition to its established strength in Europe and North America, Hostaway's customer base is further enhanced by a growing presence in Asia, Middle East, South America and Oceania.
"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," said Marcus Rader, CEO and Co-Founder of Hostaway. "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!"
"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," said Edward Hughes, Managing Director at PSG. "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."
Vista Point Advisors, a San Francisco-based boutique investment bank, served as the exclusive financial advisor to Hostaway.
About Hostaway
Founded in 2015, Hostaway is an all-in-one vacation rental management software solution that partners with property managers in the growth of their business. Hostaway serves professional vacation rental property managers by providing easy-to-use software and serving as a reliable two-way API connection to major online travel agencies. For many years, Hostaway has achieved the highest level of recognition as a partner from the three leading online travel agencies, Airbnb, VRBO and Booking.com, and was the first property management and channel management software to hold this "triple crown" designation. Hostaway has a global footprint with hubs in Finland, Canada, and Spain. Learn more at Hostaway.com.
About PSG
PSG is a growth equity firm that partners with software and technology-enabled services companies to help them navigate transformational growth, capitalize on strategic opportunities and build strong teams. Having backed more than 120 companies and facilitated over 450 add-on acquisitions, PSG brings extensive investment experience, deep expertise in software and technology, and a firm commitment to collaborating with management teams. Founded in 2014, PSG operates out of offices in Boston, Kansas City, London, Paris, Madrid and Tel Aviv. To learn more about PSG, visit www.psgequity.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230531005107/en/
Contacts:
Hostaway
Jessica Gillingham
jessica@abodeworldwide.com
PSG
Jacqueline Schofield
JSchofield@prosek.com
