Hostaway company announced the attraction of investment funds for 175 million dollars.
The firm intends to use this funding to implement plans to expand its software, which is intended for managing real estate for short-term rentals.
The CEO and co-founder of Hostaway, Marcus Rader, in a message published on his blog, said that the company will spend investment funds to accelerate the process of expanding its business. He also stated that the company, using the received funding, intends to expand the product line and improve its platform.
Rader noted that the attracted financing is the largest amount of investment that has ever been available to the company. According to him, $175 million is not only a sum of money, but also evidence of the incredible growth of the firm, the profitability of the business, and the huge potential of the industry. The financing round was led by the private investment company PSG.
The Hostaway vacation rental management software and system provide automation and simplification of the real estate management process. The press release, which was published by PSG, indicates that this system also helps in analytics, reporting, marketing, and communication.
Currently, the users of the Hostaway platform are people who manage more than 100 thousand real estate objects located in more than 100 countries.
PSG Managing Director Edward Hughes stated that he was impressed by the quality of work of the Hostaway team, their understanding and execution in creating what, in his opinion, and the opinion of his company, is a highly differentiated industry leader with a large number of levers of value creation. He also said that there is potential to strengthen the dominant position in the space of this industry, as the partner firm’s platform scales globally and helps customers meet the growing demand in the short-term rental market.
Currently, the short-term rental market is showing convincing growth dynamics. For example, Airbnb, an online platform for short-term and long-term rental of housing, published an income report in early May, which contains information that according to the results of the first quarter of this year, the number of bookings on the platform increased by 19% compared to the same period last year.
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