Israel / US: Property management platform Guesty has announced that it has raised $170 million in a Series E funding round, led by the Apax Digital Funds, MSD Partners and Sixth Street Growth.
Existing investors Viola Growth and Flashpoint also participated in the round, while JP Morgan Securities LLC acted as sole placement agent on the transaction.
The Series E capital will be used to scale the company’s global operations to meet increasing demand, pioneer new solutions that support the growing needs of hospitality operators, secure key acquisitions, and expand into new business verticals.
Amiad Soto, co-founder and CEO of Guesty, said: “Despite an exceptionally challenging fundraising climate, the funding Guesty has raised is a vote of confidence in the travel and short-term rental ecosystem, and an endorsement of our pioneering technology and position as the market leaders of the hospitality and property management software sector. As alternative accommodations surge in popularity, Guesty has come out a clear winner thanks to our commitment to prioritising innovation and ability to help our customers become more successful.
“We thank our existing partners Apax – who are increasing their commitment to Guesty – and are excited to welcome aboard MSD Partners and Sixth Street, whose strong track records in our ecosystem make them ideal long-term partners. As we continue to expand globally and grow our market leadership, we look forward to providing hospitality managers with even more value in the coming months and years,” he added.
Since the onset of the pandemic in early 2020, the short-term rental industry has grown exponentially, with travellers spending more than $200 billion on short-term rental accommodations in 2021 alone.
As the ways consumers choose to live, work, socialise and travel continue to shift, the lines between traditional hotels and rental accommodations have blurred. This trend has accelerated the need for versatile hospitality management technology as operators across the board adapt to new and elevated guest expectations.
Guesty’s solution is designed to equip hospitality providers of all sizes and accommodation types with an all-encompassing platform to optimise and scale operations, manage and distribute inventory – along with the tools, data-driven insights and enhanced services to effectively respond to evolving market trends and empower them to succeed.
Customers use Guesty to centralise their reservations across all major booking channels, including Airbnb, Vrbo, Expedia and Booking.com. The platform automates and expedites guest communications, reviews, cleaning and other operational tasks, while also facilitating direct bookings, resource and revenue management, smooth payments systems, accounting and damage protection.
With its marketplace of third-party integration partners and open API capabilities, the platform adapts to specific business and operational requirements, providing comprehensive and bespoke solutions that serve as a one-stop-shop covering all property management needs.
Dave Evans, partner at Apex Digital, said: “As alternative property management operations become more complex, Guesty is paving the way for the next generation of digital hospitality services. Their track record of success and innovation, along with their platform’s growing suite of tools and intuitive user experience has Guesty positioned to define and consolidate its category, working with hosting businesses of all sizes.
“We are excited to continue partnering with the company as it continues to transform the industry,” he added.
Dan Bitar, managing director and co-head of MSD Growth, said: “In a largely specialised and localised industry, there is a huge opportunity to bring a global standard of service and excellence to hospitality operators of all shapes and sizes. Guesty’s robust product offerings, strong R&D team, and proven ability to scale the business across geographies make it the ideal platform to consolidate the currently fragmented market.”
Michael McGinn, partner and co-head of Sixth Street Growth [which has previously invested in the likes of Airbnb and Spotify], said: “The tech-enabled real estate ecosystem continues to grow and mature, and we look forward to joining Guesty on its journey to democratise and further professionalise the property management space. With Guesty’s strong management team, long-term vision, product innovation, and marquee customers and partners, we have full confidence in the company’s ability to further cement its leadership in the world of hospitality and property management.”
Since its last raise in April 2021, when it secured $50 million in Series D funding, Guesty said that it had tripled its valuation and doubled its revenues. In the intervening period, the company has launched a number of new products, services and technology partnerships as part of its core platform, including advanced accounting tools, damage protection offerings and payment solutions tailored for short-term rental property management, and expects to reach $100 million in revenues within the next year.
Guesty plans to continue making acquisitions in the near future, having acquired competing property management softwares MyVR and Your Porter in the last 16 months.
The latest funding round takes Guesty’s funding to date to almost $285 million since its establishment in 2013.