By HTN staff – 16.8.2022
Since the start of the pandemic, the short-term rental industry (STR). grown exponentiallywith travelers spending more than 200 billion dollars on STR accommodation in 2021 alone. As the ways consumers choose to live, work, socialize and travel continue to change, the lines between traditional hotels and rental accommodation are blurred. This trend has accelerated the need for versatile hospitality management technology as operators across the board adapt to new and high guest expectations.
This trend has catapulted the demand for property management platforms for the short-term rental and hospitality industry. Now the protagonist in this space, Guestclosed in $ 170 million funding round, led by Apax Digital Funds, MSD Partners and Sixth Street Growth. Existing investors Viola Growth and Flashpoint also participated in the round.
E Series capital will reportedly be used to scale the company’s global operations to meet growing demand, pave the way for new solutions that support the growing needs of hotel industry operators, secure key acquisitions, and expand into new verticals. business to solidify Guesty’s position, according to the company, “the industry’s gold standard property management platform.”
“Despite an exceptionally challenging fundraising climate, the funding raised by Guesty is a vote of confidence in the short-term travel and rental ecosystem and an endorsement of our pioneering technology and market-leading position in the software industry. of hospitality and property management. ”said Guesty’s co-founder and CEO, Amiad Soto, in a press release.
“With the rise in popularity of alternative accommodations, Guesty has been a clear winner due to our commitment to prioritizing innovation and the ability to help our customers be more successful,” he said. “We thank our existing Apax partners – who are increasing their commitment to Guesty – and are thrilled to welcome aboard MSD Partners and Sixth Street, whose strong track records in our ecosystem make them ideal long-term partners. . As we continue to expand globally and increase our market leadership, we look forward to providing hospitality managers with even more value in the coming months and years. “
Guesty’s solution is designed to provide hospitality providers of all sizes and types of accommodation with an all-encompassing platform to optimize and scale operations, manage and distribute inventory, along with tools, data-driven insights and advanced services to respond effectively meet these market trends and empower them to succeed.
Customers use Guesty to centralize their bookings across all major booking channels, including Airbnb, Vrbo, Expedia and Booking.com. The platform automates and speeds up guest communications, reviews, cleaning and other operational tasks, while also facilitating direct bookings, asset and revenue management, smooth payment systems, accounting, and damage protection. With its broad market of third-party integration partners and its open API capabilities, the platform adapts to specific business and operational requirements, providing complete and customized solutions that act as a one-stop shop covering all property management needs.
“As alternative property management operations become more complex, Guesty is paving the way for the next generation of digital hospitality services,” he said. Dave Evans, Partner of Apax Digital. “Their track record of success and innovation, coupled with their platform’s growing suite of tools and intuitive user experience, have positioned Guesty to define and solidify its category, working with hosting companies of all sizes. We are excited to continue to partner with the company as it continues to transform the industry. “
“In a largely specialized and localized industry, there is a tremendous opportunity to bring a global standard of service and excellence to hospitality operators of all shapes and sizes,” he said. Dan Bitar, managing director and co-head of MSD Growth. “Guesty’s strong product offering, strong R&D team and proven ability to scale business across geographies make it the ideal platform to consolidate the currently fragmented market.”
“The tech-enabled real estate ecosystem continues to grow and mature and we look forward to joining Guesty on his journey to further democratize and professionalize the property management space,” he said. Michael McGinn, partner and co-head of Sixth Street Growth. “With Guesty’s strong management team, long-term vision, product innovation and key customers and partners, we have full confidence in the company’s ability to further consolidate its leadership in the world of hospitality and business management. property”.
According to a press release, Guesty has tripled its valuation and doubled its revenues since the last raise. In 2021 and 2022, Guesty launched numerous new products, services and technology partnerships as part of its core platform, including advanced accounting tools, damage protection offerings, and bespoke payment solutions for short-term rental property management. . Guesty previously acquired property management platform companies MyVR and YourPorter and is reportedly expecting further acquisitions in the near future.
The company believes its sustained growth is positioned to achieve $ 100 million of revenue within the following year. Given the company’s current trajectory, combined with the size of the new funding round, achieving that lofty goal could be very possible, if not highly likely.