Alloggio Takes Private Equity Exit in Path for Struggling Short-Term Rentals
Photo Credit: A Vacasa-managed property in Colorado. Source: Vacasa Vacasa
Skift Take
Private Equity restructuring for some short-term rental companies may be welcome — even as it means change of management, possible furloughs and cutting parts of the business. Analysts warn against spelling doom against the entire industry, however, demand still remains strong.
Australian short-term rental operator Alloggio will be taken private by private equity firm Next Capital. If approved by a shareholder vote in July, the deal will be worth around $40 million (AU $60 million).
The New South Wales-based company went public in 2021 and raised AU$16.5 million ($11 million) with a market cap of $33.1 million — this was significantly below initial banker expectations of a $20 million raise and a market cap of $45 million. Alloggio went public to both expand its property management and mid-market hotel divisions and acquire property management rights across Australia.
To insiders, it’s another-one-bites-the-dust scenario where private equity saves the day by swooping up capital-starved companies to keep them afloat and put them back on the path of profitability.
We saw it happen to Travelport in 2018, Awaze in 2019 and Expedia in 2020. Travelport went private in 2019, Wyndham Destination Network sold Awaze to
