Hostaway, an all-in-one vacation rental software and management system, announced on Wednesday, May 31, that it has raised $175M (approximately €163M) in a funding round led by private equity firm PSG.
The latest funding represents the largest capital raise in the vacation rental platform sector to date.
Hostaway intends to use the proceeds to propel its growth trajectory, expand globally, grow headcount, strengthen customer service, enhance onboarding processes, and pursue organic and inorganic opportunities to expand market share.
“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,” adds Rader.
Hostaway: Simplifying property management
Marcus Rader, Saber Kordestanchi, and Mikko Nurminen founded Hostaway in 2015 to automate and simplify property management.
The company provides professional vacation rental property managers with easy-to-use software, and serves as a reliable two-way API connection to major online travel agencies.
Hostaway allows property managers to manage all key aspects of their vacation rental business, including:
- Property Management
- Automation Tools
- Analytics & Reporting
- Marketing
The company works with more than 100,000 properties in more than 100 countries, including Airbnb, VRBO, and Booking.com.
Hostaway claims to be the first property management and channel management software to hold this “triple crown” designation.
The company has a global footprint with hubs in Finland, Canada, and Spain. As per the company’s claims, it has increased its revenues by more than ten times since 2021 and achieved strong profitability alongside its growth profile.
The investor
PSG is a growth equity firm that partners with software and technology-enabled services companies to help them navigate transformational growth, capitalise on strategic opportunities, and build strong teams.
To date, the company backed more than 120 companies and facilitated over 450 add-on acquisitions.
“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,” says Hughes.
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