Inspirato Is the Latest Entrant to the SPAC-Stock Split Club

Welcome to a brand new week, folks! After a harrowing trip back home, I can confirm that Europe has an airport staff shortage.

Also, if you’re at the VRMA conference in Orlando, make sure to say hi to Skift Executive Editor Dennis Schaal. 

Alright, onwards.

Luxury brand Inspirato is implementing a 1-for-20 reverse stock split of its Class A, Class B non-voting, and Class V common stock to meet Nasdaq’s $1 bid price requirement — similar to Vacasa and Sonder’s stock split. 

Inspirato’s Class A Common Stock resumed trading on Nasdaq October 17, retaining the ticker symbol ISPO. Stockholders approved the reverse split at a special meeting on September 26, 2023, allowing the board to determine the ratio and timing. At Monday’s close, Inspirato traded at $4.06 per share. 

In a written statement to Skift, Inspirato CEO Eric Grosse said, “Our reverse stock split was done to maintain compliance with Nasdaq, and we believe recent actions, plus our $25 million Capital One Ventures strategic partnership, will position us for a return to profitability while also maintaining our strong luxury value proposition to members.”

With mounting losses, two rounds of layoffs, a new CEO, an investment from Capital One, and more partnerships, Inspirato has had an eventful year so far. 

The company anticipates a full-year 2023 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss between $30 million and $45 million. And this is what Grosse was brought in to change. 

“My number one focus is improving member experience, two, to strengthen our near-term financial performance and to get the Inspirato experience in front of more travelers,” Grosse told Skift at the time of his appointment in September. 

Several companies including Sonder and Vacasa that went public via SPACs during Covid and have seen their share prices dip below $1 have similarly announced reverse stock splits. Perhaps this illustrates what industry experts often warn of: the risk of scaling too big too soon. 

reAlpha Goes Public

Short-term rental investment platform ReAlpha has just gone public. The Dublin, Ohio-based company began trading its common stock on Nasdaq under AIRE on Monday. CEO Giri Devanur believes this Nasdaq listing will enhance its real estate-focused AI mission and support growth through acquisitions and expanded investor appeal. In March, reAlpha, launched its fractional ownership platform for short-term rentals. 

Your.Rentals’ New Money

Your.Rentals has raised €2.7 million ($2.8 million) in growth financing through an investment from Trind Ventures and through equity crowdfunding platform Seedrs. With this capital Your.Rentals will expand its offerings including advanced payouts and revenue-backed loans for owners and property managers. Your.Rentals is also launching a mobile app.

TravelNet Solutions’ New Upgrade

Minnesota-based software provider for short-term rentals TravelNet Solutions unveiled upgrades to its property management system Track. What’s new? A revamped distribution engine, reviews management, and tracking payments. 

Isle of Palms Contemplates Short-Term Rental License Cap in Upcoming Referendum

Isle of Palms, a barrier island in South Carolina, is seeing a proliferation of yard signs to regulate rentals as voters prepare for a November 7 referendum that could limit short-term rental licenses, The Post and Courier reported. This debate is part of a broader statewide discussion over vacation rentals. Supporters argue it’s about preserving the island’s quality of life, with over 30% of registered voters signing a petition to put the referendum on the ballot. 

Opponents, primarily in the vacation rental business, believe it’s about property rights and values, fearing a cap could impact property sales. The referendum calls for a 1,600-license cap for investors and second-home owners while retaining no cap for owner-occupied residences. The outcome remains uncertain, with supporters emphasizing community preservation and opponents defending property rights.