Hostaway announces $365 million strategic growth investment – Web In Travel

Hostaway, an all-in-one vacation rental software and management system, announced it has secured a $365 million strategic growth investment led by General Atlantic, a global growth investor, with participation from existing investor PSG Equity.

Hostaway plans to partner with General Atlantic and PSG Equity to further propel its growth strategy, including international expansion, product development, and AI initiatives. Upon completion of the transaction, General Atlantic and PSG Equity will both be significant minority shareholders in Hostaway, and the investment will mark the largest transaction to date in Hostaway’s market segment.

Here are some key takeaways from the announcement:

• Hostaway’s integrated vacation rental software platform supports customers with properties in over 90 countries worldwide
• In partnership with existing investor PSG Equity, General Atlantic to contribute its expertise in vertical software, integrated payments, and the travel and hospitality sector to support Hostaway across international expansion, product development, and AI initiatives
• Investment follows Hostaway’s $175 million fundraise in 2023 and represents the largest capital raise in the company’s market segment to date

Founded in 2015 by Marcus Räder, Saber Kordestanchi, and Mikko Nurminen, 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. General Atlantic’s investment follows a period of significant company growth, with Hostaway benefitting from PSG Equity’s backing since 2023. Today, the company’s integrated marketplace has over 200 marketplace partners, curating premier vacation rental software and tools within the industry for customers with properties in over 90 countries. Hostaway’s fully remote workforce includes over 230 employees across 44 countries.

As a vacation rental software and management system, Hostaway allows short-term rental property owners and managers to manage all aspects of their vacation rental business.

Hostaway 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, and Homes & Villas by Marriott.

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 maximize 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 in its automation tools to support property owners and managers across guest messaging, content creation, and language translation.

The short-term rental sector is a $133 billion GMV market that has grown at 12% CAGR over the last decade and currently serves over 21 million short-term rental properties globally. The market continues to professionalize with a growing number of property managers seeking software solutions to help expand and manage their increasingly complex businesses. Hostaway continues to capitalize on these global tailwinds and demand through geographic expansion to key markets – including building upon its presence in France, Italy, and Spain – and intends to leverage General Atlantic’s expertise in scaling companies at the intersection of vertical software, integrated payments, and the travel and hospitality sector globally.

“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. “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. 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.”

William Blair and Cambon Partners acted as financial advisors to Hostaway.