Hostaway secures US$365M investment to drive global growth

USA – Hostaway, a prominent player in vacation rental management software, has announced a US$365 million strategic investment led by General Atlantic, with additional participation from PSG Equity.

The funding aims to accelerate Hostaway’s expansion into international markets, enhance its software offerings, and incorporate artificial intelligence-driven solutions.

Established in 2015 by Marcus Räder, Saber Kordestanchi, and Mikko Nurminen, Hostaway has developed into a comprehensive platform for short-term rental property management.

Offering solutions that automate routine tasks, streamline operations, and provide insightful analytics, the company serves property managers across 90 countries.

“This investment marks a critical milestone for us as we continue to expand globally and innovate to meet the needs of our customers,” said Marcus Räder, CEO and Co-Founder of Hostaway.

The investment highlights Hostaway’s strategic goals, including deeper penetration into markets like France, Spain, and Italy.

Additionally, the company plans to expand its suite of tools with features such as dynamic pricing, enhanced automation, and flexible loan options for property managers.

The short-term rental industry, valued at $133 billion, has seen steady growth over the past decade. As the market matures, property managers increasingly seek advanced software to manage their businesses.

Hostaway’s platform integrates over 200 partners, including major travel platforms like Airbnb, VRBO, and Booking.com.

“Hostaway’s growth trajectory underscores its ability to meet the evolving demands of the rental property market,” noted Matthew Dorr, Principal at General Atlantic. “We are excited to support the company as it continues to scale and innovate.”

The company’s use of artificial intelligence is central to its growth strategy. Features like AI-driven guest communication, automated task management, and multilingual content creation enhance the efficiency of property managers.

Hostaway’s automation tools, coupled with its analytics capabilities, have positioned it as a preferred choice for professionals in the sector.

Edward Hughes, Managing Director at PSG Equity, expressed confidence in Hostaway’s leadership. “Since our partnership began in 2023, Hostaway has tripled its scale. This growth reflects the team’s expertise and the platform’s strong global demand.”

Hostaway’s remote workforce of over 230 employees spans 44 countries, reflecting its global focus. With the backing of General Atlantic and PSG Equity, the company is poised for further innovation and expansion.

As Räder emphasized, “We are committed to helping our customers grow and manage their businesses efficiently.”

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