Hostaway Announces $365 Million Strategic Growth Investment Led by General Atlantic

Hostaway, a leading all-in-one vacation rental software and management system, today announced it has secured a $365 million strategic growth investment led by General Atlantic, a leading global growth investor, with participation from existing investor PSG Equity. Hostaway plans to partner with General Atlantic and PSG Equity to further propel its growth strategy, including international expansion, product development, and AI initiatives. Upon completion of the transaction, General Atlantic and PSG Equity will both be significant minority shareholders in Hostaway, and the investment will mark the largest transaction to date in Hostaway’s market segment.

Founded in 2015 by Marcus Räder, Saber Kordestanchi, and Mikko Nurminen, Hostaway enables short-term rental owners and managers to automate and simplify property management. The company helps property managers scale and grow their businesses through one platform with hundreds of API connections and integrations. General Atlantic’s investment follows a period of significant company growth, with Hostaway benefitting from PSG Equity’s backing since 2023. Today, the company’s integrated marketplace boasts over 200 marketplace partners, curating premier vacation rental software and tools within the industry for customers with properties in over 90 countries. Hostaway’s fully remote workforce includes over 230 employees across 44 countries.

As a comprehensive vacation rental software and management system, Hostaway allows short-term rental property owners and managers to manage all aspects of their vacation rental business, including across:

• Property Management: Easy-to-use property management system for vacation rentals to measure performance and manage inquiries, recurring guests, distribution channels, owners and staff in one place.
• Channel Management: Hostaway's proprietary channel manager is the core of the platform, providing sophisticated two-way API connection to all major online travel agencies, including Airbnb, VRBO, Booking.com, Expedia, TripAdvisor, Marriott, and Google Travel.
• AI: Powerful tools that enhance your listings and guest communications - includes AI suggested message responses, enhanced listing descriptions for SEO, and more.
• Automation Tools: Automates repetitive tasks with automated messages, reviews, tasks and payments.
• Analytics & Reporting: Customizable reports give property managers valuable insights into their business.
• Communication: All the communication tools a property manager needs, with an industry-leading unified inbox with support for email, text messages, and WhatsApp.
• Marketing: Market properties with easy booking website set up, WordPress plugin, coupon management, website builder, and direct booking tools.
• Operations: Supports daily operations with automation and features such as guest invoicing, flexible payment processing, and task management services.

Hostaway became the first property management and channel management software company to earn the highest partnership designations from the three leading online travel agencies – Airbnb, VRBO and Booking.com – and it also currently has preferred relationships with Google, Expedia, and Homes & Villas by Marriott.

The company has recently launched a range of tools and add-ons to further address customer needs, including Dynamic Pricing by Hostaway, an automated solution to help customers maximize revenue; Hostaway Capital, to provide flexible loans specially catered to the property management sector; Hostaway Insurance, to provide coverage for property damage during a rental period; and Smart Lock integration to further streamline the property management and guest experience. Hostaway has also integrated AI in its automation tools to support property owners and managers across guest messaging, content creation, and language translation.

The short-term rental sector is a $133 billion GMV market that has grown at 12% CAGR over the last decade and currently serves over 21 million short-term rental properties globally¹. The market continues to professionalize with a growing number of property managers seeking software solutions to help expand and manage their increasingly complex businesses. Hostaway continues to capitalize on these global tailwinds and demand through geographic expansion to key markets – including building upon its presence in France, Italy, and Spain – and intends to leverage General Atlantic’s expertise in scaling companies at the intersection of vertical software, integrated payments, and the travel and hospitality sector globally.

“We are excited to partner with General Atlantic, a firm with deep global experience in our sector,” said Marcus Räder, CEO and Co-Founder of Hostaway. “This transaction is a critical milestone that will enable Hostaway to expand our commitment to delivering continued product innovation and invest further in AI-driven tools as we support our customers in growing and managing their businesses. Also, we are excited to leverage this investment to further expand our footprint across the world, especially in key markets like France, Spain, and Italy. We have identified like-minded and decisive partners in General Atlantic and PSG Equity and are thrilled to collaborate with them on the next stage of our journey.”

“Hostaway has emerged as a category leader with a differentiated product addressing the distinct needs of short-term rental property managers, a dynamic and growing industry,” said Raph Osnoss, Managing Director at General Atlantic. “We greatly admire the company’s high velocity of innovation and dedication to supporting its customers, and we look forward to working with this impressive team.” Matthew Dorr, Principal at General Atlantic, added, “We believe Hostaway is poised for continued growth, and we are thrilled to work alongside PSG to support the company across a number of value creation initiatives.”

“Our journey with Marcus and the wider Hostaway team began in 2023 and we have continued to be impressed with the quality, offering and strong growth of the platform,” said Edward Hughes, Managing Director at PSG. “Hostaway has already grown three-fold since making our investment, which is a testament to the company’s deep expertise in the short-term rental property space and the strong global customer demand for its products. There is a lot to be proud of and we are excited to continue to support Hostaway in this next chapter alongside General Atlantic.”

William Blair and Cambon Partners acted as financial advisors to Hostaway.

About Hostaway

Hostaway is a leading all-in-one short-term rental management software enabling property managers and owners to grow their business. Hostaway’s platform features preferred and premiere channel integrations with online travel agencies like Airbnb, Vrbo, Booking.com and more. The company’s integrated marketplace boasts ~200 marketplace partners, curating premier vacation rental software and tools within the industry for customers with properties in over 90 countries.

Known for excellent customer support, Hostaway’s team partners with clients to grow their inventory, close operational gaps, and make smarter business decisions. From channel management, guest communications, reporting, accounting and more, Hostaway provides flexible technology and support for short-term rental property managers around the world.

About General Atlantic

General Atlantic is a leading global growth investor with more than four decades of experience providing capital and strategic support for over 520 growth companies throughout its history. Established in 1980, General Atlantic continues to be a dedicated partner to visionary founders and investors seeking to build dynamic businesses and create long-term value. Guided by the conviction that entrepreneurs can be incredible agents of transformational change, the firm combines a collaborative global approach, sector-specific expertise, a long-term investment horizon, and a deep understanding of growth drivers to partner with and scale innovative businesses around the world. The firm leverages its patient capital, operational expertise, and global platform to support a diversified investment platform spanning Growth Equity, Credit, Climate, and Sustainable Infrastructure strategies. General Atlantic manages approximately $100 billion in assets under management, inclusive of all strategies, as of October 1, 2024, with more than 900 professionals in 20 countries across five regions. For more information on General Atlantic, please visit: www.generalatlantic.com.

About PSG Equity

PSG is a growth equity firm that partners with software and technology-enabled services companies to help them navigate transformational growth, capitalize on strategic opportunities and build strong teams. Having backed over 140 companies and facilitated over 500 add-on acquisitions, PSG brings extensive investment experience, deep expertise in software and technology, and a firm commitment to collaborating with management teams. Founded in 2014, PSG operates out of offices in Boston, Kansas City, London, Madrid, Paris and Tel-Aviv. For more information, visit www.psgequity.com.

_________________________
¹ Euromonitor, BCG

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216460239/en/