M3 Secures Majority Investment from Blackstone to Fuel Growth of Its Hotel Accounting Solution

Blackstone Growth, along with affiliated funds and the Asian American Hotel Owners Association (AAHOA), have acquired a majority stake in M3, a prominent provider of hospitality accounting software in North America. This investment marks an important step for both M3 and AAHOA, which is making its first strategic investment of this kind. Financial terms of the investment were not disclosed.

Founded in 1998, M3 has become a key player in the hotel back-office technology landscape. The company’s software is utilized by over a thousand hotel operators and management companies, covering more than 8,000 properties across North America. M3’s platform offers a range of solutions, including accounting, labor management, and business intelligence. The company has been recognized as the top hotel accounting software provider by HotelTech Report for four years running.

The investment seeks to accelerate M3’s growth by supporting the development of new products and expanding the reach of its software among hotel operators. Blackstone brings its experience in both real estate and technology to the partnership, while AAHOA offers its extensive network within the hospitality industry.

M3 is a cloud-based financial platform specifically designed for the hospitality industry. The company provides accounting, labor management, and business intelligence solutions to over 8,000 hotels across North America. Its software is used by a wide range of hospitality businesses, from independent hotels to large management groups.

M3’s platform offers a comprehensive suite of features, including:

• Accounting and Financial Analysis: Provides robust accounting tools and financial reporting capabilities for managing hotel finances and analyzing performance across entire portfolios.

• Labor Management: Offers tools for optimizing labor scheduling, tracking employee time and attendance, and managing payroll.

• Business Intelligence: Delivers insights into key performance indicators, enabling data-driven decision-making for hotel operations.

The platform is designed to integrate with other industry-standard hotel systems, ensuring seamless data flow and operational efficiency. The company also offers professional services, including on-demand accounting and bookkeeping support, to assist hotels with their financial management needs.

This investment aligns with Blackstone’s recent activity in the hospitality technology sector. Earlier this year, Blackstone Real Estate acquired UK-based Village Hotels. In 2022, Blackstone acquired Cvent, a provider of event and hospitality technology. These moves, along with the investment in M3, indicate Blackstone’s interest in the growing hospitality technology market.

As the hospitality industry continues its digital transformation, the need for robust technology solutions is increasing. M3, with its established platform and the support of Blackstone and AAHOA, is well-positioned to address this demand and further solidify its presence in the market.