By HTN staff - 4.10.2024
Guesty, a leading software platform for property management in the short-term rental (STR) and hospitality sector, has announced a Series F funding round of $130 million. The round was spearheaded by KKR, a global investment firm, with Inovia Capital, Apax Funds, BDT & MSD Partners, and Sixth Street also participating. The funding will reportedly be used to further develop Guesty’s enterprise-level platform for property managers and to facilitate market consolidation with the aim of expanding the company’s global presence.
The STR industry, currently valued at $277 billion, has been experiencing rapid growth. Changes in consumer behavior regarding living, working, socializing, and traveling have resulted in an increased demand for STRs, outpacing hotels every quarter since 2022. To cater to this demand and manage the growing number and complexity of properties offered as short-term rentals, property managers are increasingly turning to comprehensive property management systems like Guesty.
Founded in 2013 in Tel Aviv, Israel, Guesty currently operates in over 80 countries and offers a comprehensive and user-friendly platform. It provides both enterprise and SMB property managers, as well as individual hosts, with the necessary tools to manage the entire rental journey. The platform helps property managers advertise and manage their vacation or short-term rental properties, delivering exceptional guest experiences through a highly intuitive user interface and open API capabilities. Featuring a full suite of functionalities and partnerships with over 180 industry leaders, including major OTAs, Guesty is designed to automate and streamline virtually all operational aspects. The company boasts 15 global offices and a team of over 700 employees.
The newly acquired funding will be allocated towards expanding across the United States and enhancing vacation rental offerings with innovative features. Additionally, Guesty plans to cater to the European market, with a focus on France, Germany, and Spain, while also reinforcing its presence in Australia with customer-specific developments.
In a press statement, Amiad Soto, Guesty’s CEO and Co-Founder, emphasized the continued surge in demand for short-term rentals and Guesty’s commitment to developing its platform’s functionality and AI capabilities to deliver first-to-market features and superior support for its customers. “Guesty has enjoyed astonishing five-fold growth during the last three years. We’re delighted that this has been recognized by top-tier investors KKR and Inovia, and we’re excited to have them onboard alongside our other investors as we enter our next growth period,” he said. “The surge in those seeking short-term rentals continues and our platform remains at the vanguard of the industry. As we embark on creating the industry’s first intelligent property management platform, we’ll continue to develop its functionality and AI capabilities to deliver first-to-market features and best-in-class support for our customers.”
KKR’s investment in Guesty was primarily made through its Next Generation Technology Growth Fund III, a fund dedicated to growth equity investment opportunities in the technology space. KKR has a proven track record of supporting technology-focused growth companies, having invested over $21.6 billion in related investments since 2014.
In February, Guesty launched Guesty Lite, a new offering tailored for hosts managing between one to three properties. The solution leverages Guesty’s property management solution, enabling hosts to access its premier features and technology with ease. Guesty Lite is designed to enhance listing visibility across major booking channels, streamline daily operations, and facilitate growth, all from a unified platform.
Last year, Guesty acquired Nashville-based vacation rental tech platform StaySense. StaySense provides marketing and tech solutions to vacation rental managers. With this acquisition, StaySense’s technology will be integrated into the Guesty platform to enable direct booking, other distribution channels, and marketing tools for Guesty’s customers. StaySense initially started as a full-service property manager in 2014, managing rentals for property owners. The management contracts were later sold to VTrips in 2016, while retaining ownership of its technology and web brand.