Dealmaking continues to avoid getting locked down, at least in the vacation rental sector.
Vacation-rental management business Alloggio on Monday became a public company in Australia, as investors worldwide continue to drench the short-term rental housing sector with capital.
Alloggio raised $11.7 million ($16.5 million Australian). The property management firm closed the day’s trading with a market capitalization of $23 million ($33.1 million Australian). The company’s share performance underperformed expectations as the Omicron variant upset many countries’ plans to lift international travel restrictions.
The company — based in Newcastle, New South Wales, and founded in 2015 — runs 879 rentals on behalf of homeowners. It markets the properties on travel search services, such as Airbnb, Booking.com, Vrbo, and Vrbo’s Australian sister brand Stayz.
The business model appears to be profitable. In the 2021 financial year, the company generated earnings before interest, taxes, depreciation, and amortization of $3.4 million ($4.7 million Australian) on revenue of $8 million ($11.3 million Australian).
Larger companies Vacasa and Sonder have broadly similar business models, and they are on track to go public in the U.S. in the near term — unless Omicron delays them. The transactions come as the alternative lodging sector enjoys a multi-year global boom.
Alloggio said it’s looking to use proceeds from the initial public offering to acquire more rental property customers.
Photo credit: A vacation apartment for rent from Alloggio, a property manager in Australia that on Monday became a public company.