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Travel is Back: Hostaway Raises $365M at a $925M Valuation
Hostaway, a platform for managing short-term vacation rentals, has announced it has raised $365 million in a new funding round that values the company at $925 million. This significant investment comes as the travel industry continues to experience unprecedented growth and recovery from the pandemic.
As explained by Raph Osnoss, Managing Director at General Atlantic who led the investment, Hostaway’s marketplace is crucial in this context. By allowing property managers and owners to list their properties across multiple platforms, Hostaway provides a comprehensive solution for the short-term rental industry. This approach also enables the company to gather valuable insights into customer preferences and trends.
Osnoss emphasized that despite the ambitions of online travel agencies (OTAs) like Booking, Expedia, and Airbnb, there remains an untapped area in the market that Hostaway is addressing. The short-term rental industry, he noted, is inherently fast-growing due to shifting consumer habits. However, this growth will necessitate increased “professionalization” within the sector.
He highlighted that OTAs are not equipped to serve property managers comprehensively, as they focus primarily on serving individual travelers. Furthermore, Hostaway acts as a major driver of volume for OTAs, which is why the latter value the company’s services so highly.
The funds raised will be utilized by Hostaway to further expand its marketplace, enhance its offerings, and explore new markets and opportunities.
In a statement, the company noted that this investment reinforces its position as a leader in the short-term rental management space.
Source: techcrunch.com
