US: Premier next-generation hospitality platform AvantStay has announced that it has closed a $160 million Series B funding round.
The round was co-led by private investment firm Tarsadia Investments and multi-stage global growth equity firm 3L Capital. Existing investors Bullpen Capital and Convivaialite also participated in the raise.
Joining them are a new group of backers, such as Capital One Ventures, Saluda Grade, Greenhawk, Stephen Pagliuca, Fred Tuomi, Jerry Coleman, Jay McKee, and celebrity investors including Plus Capital, Paul George, Shawn Mendes, and more.
Operating in more than 100 cities, AvantStay expects to use the funding to drive continued growth, including expanding into new markets, developing its technology offerings, elevating the customer experience, and launching its brokerage services across the United States.
Tarsadia managing director Rishi Reddy said: “It’s become clear that consumer preferences are changing and that the hospitality industry is going through a paradigm shift. AvantStay’s blistering growth happens when market pull, a culture of innovation, and relentless execution collide.
“We are incredibly excited to partner with Sean and the team as they continue to scale a vertically integrated hospitality brand of the future centred around best in class talent, technology and operations,” he added.
The bumper Series B raise was concluded two years after AvantStay’s $20 million Series A financing round, which was also led by 3L Capital. Since then, the company has added more than 700 homes and over 80 destinations to its portfolio, including in Hawaii, California, South Carolina, Colorado, Tennessee, Florida and Mexico.
Over the last year, AvantStay has increased its portfolio more than three times to 1,000+ properties, grown its team to over 400 employees, and ranked as the second fastest growing hospitality company on the Inc. 5000 list.
Jodi Kessler, partner at 3L, said: “Since we led AvantStay’s Series A investment over two years ago, we’ve watched the company not only grow their supply and revenue tenfold, but also navigate one of the worst possible macro shocks that occurred in the hospitality industry.
“Their incredible execution and resilience, combined with a massive tailwind in the travel sector for AvantStay’s product makes us excited to double down on and support the team as they continue to build both a world-class hospitality brand for travellers, and a vertically integrated platform through which individuals and institutions can invest in short-term rental properties,” she added.
Sean Breuner, founder and CEO of AvantStay, said: “The industry has seen monumental changes and expansion with new and differentiated offerings for the way people want to travel today. This round of funding serves as a powerful catalyst to our company’s explosive growth as the leading short-term rental brand in the USA.
“With Tarsadia, 3L, and our other investors’ support, we can continue to build a platform that meets the demands of guests who crave unique experiences and meaningful connections. Each of these companies has a deep understanding of the industry and will be instrumental partners in supporting our brand’s mission,” he added.
Aiming to set a new standard for the short-term rental industry, AvantStay has introduced click-to-touch concierge and value-added services, group booking capabilities, and an integrated IoT suite powered by its proprietary operating platform, Voyage.
AvantStay co-founder and CEO, Reuben Doetsch, said: “Our advanced proprietary tech platform enables us to deliver highly curated experiences customised to our guests’ needs. This year, we’ve continued to improve our world-class platform that allows us to source, underwrite, design, onboard, distribute, and manage properties at scale.
“With this capital, we are doubling down on integrating the analogue and digital to create seamless unforgettable experiences and stays for our guests,” he added.