Hostaway Raises $365 Million for Short-Term Rental Management Platform
Skift Take
Key Points
- Hostaway raised $365 million, valuing the company at $925 million.
- Private equity firm General Atlantic led the funding round, joined by PSG.
- The funds will support international expansion and further AI integration in Hostaway's platform.
Summary
Hostaway, a platform for managing short-term rentals, has raised $365 million, valuing the company at $925 million. This significant fundraising effort was led by General Atlantic, with PSG also participating. The funds will be used for international expansion, particularly in Europe, and to enhance their platform's AI capabilities, including direct booking tools and AI-powered features.
Hostaway, a platform for managing short-term rentals, has raised $365 million — one of the largest fundraises of the year and among the largest ever in its sector.
The fundraise values the company at $925 million.
The fundraise comes shortly after hotel analytics tech company Lighthouse raised $370 million, the largest fundraise of the year for a travel software company.
Private equity firm General Atlantic led the round, with participation from existing investor PSG. Hostaway said that both firms are “significant minority shareholders” in the company following the transaction.
PSG led Hostaway’s previous round of $175 million in 2023.
Miami-based Hostaway is meant to simplify the multiple tasks for short-term rental property managers, with tools for managing inquiries, dynamic pricing, automating reviews and messages, channel management, analytics, and marketing.
The company also partners with more than 200 third-party software vendors that customers can use through the Hostaway platform.
Skift spoke with Marcus Rader, CEO of Hostaway, about what's next for the company following the fundraise. He shared plans for expanding in Europe, attempting to establish itself as a market leader, and helping clients focus on direct bookings. (Read the story).
The company plans to further integrate AI into the platform, with plans for AI-powered messaging, content creation, and language translation.
Photo Credit: Hostaway raised $365 million for vacation rental management tech. Pixabay / StockSnap
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