Short-Term Rental Company Altido to Ramp Up Dealmaking as Antidote to Market Pressures
Skift Take
Altido, a short-term property management group based in Europe, plans to grow through bite-size mergers in 2020. Its new CEO seems right in saying that the dynamics driving the company's strategy speak to larger dynamics in the sector.
Vacation rental companies are ramping up their merger activity, hoping a broader reach will help them defend their turf from upstart home-rental management companies — and the venture capital and private equity firms backing those challengers.
Altido, a property management group based in London, showcases how many property management companies worldwide are responding to pressures felt across the sector.
Altido — which on Monday formally announced Billy O'Sullivan is its new CEO — resulted in May from the merger of four short-term property management companies. It's on track to process just under $65 million (£50 million) in gross bookings this year from its 1,700 units in Europe. Yet despite its smallness, Altido stands out for some of its strategies.
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The company, which doesn't have venture capital or private equity backers, plans to take majority ownership stakes in other property management companies in the next year. Three deals are in the pipeline, with an ambi