The global opportunity in the vacation rental management software market is large and growing with a total addressable market of €1.9 billion. And while domestic leisure and travel categories continue to rebound in Europe and North America, small property owners are increasingly outsourcing to property managers and digitizing their operations.
Is in this specific scenario that Hostaway, a Finnish leading all-in-one vacation rental software and management system, is announcing a €164 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.
“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,” says 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,” says 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.”
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.
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.
Read the orginal article: https://www.eu-startups.com/2023/06/helsinki-based-hostaway-raises-e164-million-to-expand-its-leadership-in-the-rebounding-vacation-rental-sector/
