The travel sector is experiencing a swift recovery post-pandemic, with international travellers not only rebuilding confidence in tourism but also embracing a more adventurous spirit. While many travellers turn to online platforms like Booking.com and Airbnb for accommodations, there are other options as well. One such company is Hostaway, an all-in-one vacation rental software and management system.
Investment to fuel growth
In a recent development, Hostaway has landed a $365 million strategic growth investment at a post-money valuation of $925 million. New investor General Atlantic, a prominent backer of Airbnb, that recently backed Flo Health led the round, and previous backer PSG Equity (which backed LogicMonitor and One Click LCA) contributed to it.
The company will use the investment to expand its vacation rental software and management system designed for short-term rental property owners and managers. It will focus on international expansion, product development, and AI initiatives. It also aims to build upon its presence in France, Italy, and Spain.
Helps automate and simplify property management
Founded in 2015 by Marcus Räder, Saber Kordestanchi, and Mikko Nurminen in Helsinki, Finland, 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.
The short-term rental property owners and managers manage all aspects of their vacation rental business with its easy-to-use property management system that measures performance and manages inquiries, recurring guests, distribution channels, owners, and staff in one place. Its proprietary channel manager provides a sophisticated two-way API connection to all major online travel agencies, including Airbnb, VRBO, Booking.com, Expedia, TripAdvisor, Marriott, and Google Travel.
It offers powerful tools that enhance your listings and guest communications, including AI-suggested message responses, enhanced listing descriptions for SEO, and more. It automates repetitive tasks with automated messages, reviews, tasks, and payments, provides customisable reports that offer property managers valuable insights into their business, and communication tools a property manager needs.
Tools and add-ons for users
The company has recently launched a range of tools and add-ons to further address customer needs, including Dynamic Pricing by Hostaway, an automated solution to help customers maximise revenue; Hostaway Capital, to provide flexible loans specially catered to the property management sector; Hostaway Insurance, to provide coverage for property damage during a rental period; and Smart Lock integration to further streamline 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.
Currently, 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. In addition, its fully remote workforce includes over 230 employees across 44 countries.
“We are excited to partner with General Atlantic, a firm with deep global experience in our sector,” said Marcus Räder, CEO and Co-Founder of Hostaway. “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.”
“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,” said Raph Osnoss, Managing Director at General Atlantic. “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.”
“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,” said Edward Hughes, Managing Director at PSG. “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.”
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