Since the onset of the pandemic, the short-term rental (STR) industry has grown exponentially, with travelers spending more than $200 billion on STR accommodations in 2021 alone. As the ways consumers choose to live, work, socialize and travel continue to shift, the lines between traditional hotels and rental accommodations have blurred. This trend has accelerated the need for versatile hospitality management technology as operators across the board adapt to new and elevated guest expectations.
This trend has catapulted demand for property management platforms for the short-term rental and hospitality industry. Now the leading player in this space, Guesty, has closed a $170 million funding round, led by the Apax Digital Funds, MSD Partners and Sixth Street Growth. Existing investors Viola Growth and Flashpoint also participated in the round.
The Series E capital will reportedly be used to scale the company’s global operations to meet increasing demand, pioneer new solutions that support the growing needs of hospitality operators, secure key acquisitions, and expand into new business verticals to solidify Guesty’s position as, according to the company, “the industry’s gold-standard property management platform.”
“Despite an exceptionally challenging fundraising climate, the funding Guesty has raised is a vote of confidence in the travel and short-term rental ecosystem, and an endorsement of our pioneering technology and position as the market leaders of the hospitality and property management software sector,” said Guesty’s Co-founder and CEO, Amiad Soto, in a press statement.
“As alternative accommodations surge in popularity, Guesty has come out a clear winner thanks to our commitment to prioritizing innovation and ability to help our customers become more successful,” he said. “We thank our existing partners Apax – who are increasing their commitment to Guesty – and are excited 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 grow 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 equip hospitality providers of all sizes and accommodation types with an all-encompassing platform to optimize and scale operations, manage and distribute inventory – along with the tools, data-driven insights and enhanced services to effectively respond to these market trends and empower them to succeed.
Customers use Guesty to centralize their reservations across all major booking channels, including Airbnb, Vrbo, Expedia and Booking.com. The platform automates and expedites guest communications, reviews, cleaning and other operational tasks, while also facilitating direct bookings, resource and revenue management, smooth payments systems, accounting and damage protection. With its large marketplace of third-party integration partners and its open API capabilities, the platform adapts to specific business and operational requirements, providing comprehensive and bespoke solutions that serve 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,” said Dave Evans, Partner at Apax Digital. “Their track record of success and innovation, along with their platform’s growing suite of tools and intuitive user experience has Guesty positioned to define and consolidate its category, working with hosting businesses of all sizes. We are excited to continue partnering with the company as it continues to transform the industry.”
“In a largely specialized and localized industry, there is a huge opportunity to bring a global standard of service and excellence to hospitality operators of all shapes and sizes,” said Dan Bitar, Managing Director and co-Head of MSD Growth. “Guesty’s robust product offerings, strong R&D team, and proven ability to scale the 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 its journey to democratize and further professionalize the property management space,” said Michael McGinn, Partner and Co-Head of Sixth Street Growth. “With Guesty’s strong management team, long-term vision, product innovation, and marquee customers and partners, we have full confidence in the company’s ability to further cement its leadership in the world of hospitality and property management.”
According to a press statement, Guesty has tripled its valuation and doubled its revenues since its last raise. In 2021 and 2022, Guesty launched multiple new products, services and technology partnerships as part of its core platform – including advanced accounting tools, damage protection offerings and payment solutions tailored for property management of short-term rentals. Guesty previously acquired property management platform companies MyVR and YourPorter and reportedly plans further acquisitions in the near future.
The company believes that its sustained growth has it positioned to reach $100 million in revenue within the next year. Given the company’s current trajectory, combined with the size of the new funding round, reaching that lofty target may be very possible, if not highly probably.