Israel / United States: Property management platform Guesty announced it raised $170 million in a Series E funding round, led by 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 for the transaction.
The Series E capital will be used to scale the company’s global operations to meet growing demand, launch new solutions that meet the growing needs of hotel operators, secure key acquisitions and expand into new new business sectors.
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 market leaders in the hotel and property management software industry. As alternative accommodations grow in popularity, Guesty has clearly come out on top thanks to our commitment to prioritizing innovation and our ability to help our customers become more successful.
“We thank our existing Apax partners – who are furthering their commitment to Guesty – and we are delighted to welcome 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 increase our market leadership, we look forward to offering hospitality managers even more value in the months and years to come,” he added.
Since the onset of the pandemic in early 2020, the short-term rental industry has grown exponentially, with travelers spending over $200 billion on short-term rental accommodations in 2021 alone.
As the ways consumers choose to live, work, socialize and travel continue to evolve, the lines between traditional hotels and rental accommodations have blurred. This trend has accelerated the need for versatile hotel management technology as operators at all levels adapt to new and elevated guest expectations.
Guesty’s solution is designed to equip hotel providers of all sizes and accommodation types with a global platform to optimize and scale operations, manage and distribute inventory, as well as tools, information based on data and enhanced services to respond effectively to changing market trends. and empower them to succeed.
Customers use Guesty to centralize their reservations across all major booking channels, including Airbnb, Vrbo, Expedia and Booking.com. The platform automates and accelerates guest communications, reviews, cleaning and other operational tasks, while facilitating direct bookings, resource and revenue management, smooth payment systems, accounting and protection against damage.
With its marketplace of third-party integration partners and open API capabilities, the platform adapts to specific business and operational requirements, providing comprehensive, 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 leading 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 allowed Guesty to define and consolidate its category, working with accommodation companies of all sizes.
“We are excited to continue our partnership 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 specialized and localized industry, there is tremendous opportunity to bring a global standard of service and excellence to hotel 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 technology-enabled real estate ecosystem continues to grow and mature, and we look forward to joining Guesty on their journey to further democratize and professionalize the property management space. With Guesty’s strong management team, long-term vision, product innovation and renowned customers and partners, we have full confidence in the company’s ability to further consolidate its leadership in the hospitality and property management.
Since its last raise in April 2021, when it secured $50 million in Series D funding, Guesty said it has tripled its valuation and doubled its revenue. In the meantime, 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 to managing short-term rental properties, and expects to reach $100 million in revenue over the next year.
Guesty plans to continue making acquisitions in the near future, having acquired competing property management software MyVR and Your Porter over the past 16 months.
The latest funding round brings Guesty’s funding to date to nearly $285 million since its inception in 2013.