Hostaway has secured a $365 million strategic growth investment to expand its vacation rental software and management system designed for short-term rental property owners and managers.
The company will use the new funding to support its international expansion, product development and artificial intelligence (AI) initiatives, Hostaway said in a Tuesday (Dec. 17) press release.
“This transaction is a critical milestone that will enable Hostaway to expand our commitment to delivering continued product innovation and invest further in AI-driven tools as we support our customers in growing and managing their businesses,” Hostaway CEO and Co-founder Marcus Räder said in the release. “Also, we are excited to leverage this investment to further expand our footprint across the world, especially in key markets like France, Spain and Italy.”
Hostaway’s platform currently supports customers with properties in more than 90 countries and offers an integrated marketplace that provides access to vacation rental software and tools from more than 200 partners, according to the release.
The platform provides a property management system and two-way API connection to major online travel agencies, the release said. It also includes tools for analytics and reporting, communication, marketing and operations.
The platform’s current AI tools provide suggested message responses, SEO-optimized listing descriptions, and other ways to enhance listings and guest communications, per the release.
Recent additions to Hostaway’s offerings include Hostaway Dynamic Pricing, Hostaway Capital, Hostaway Insurance and Hostaway Smart Locks, according to the release.
Raph Osnoss, managing director at General Atlantic, which led the strategic growth investment, said in the release that Hostaway has demonstrated “high velocity of innovation and dedication to supporting its customers.”
“Hostaway has emerged as a category leader with a differentiated product addressing the distinct needs of short-term rental property managers, a dynamic and growing industry,” Osnoss said.
This announcement came about 18 months after Hostaway raised $175 million, saying it planned to use the new funding to accelerate its expansion and continue developing its services.
Another company offering a property management software platform for the short-term rental and hospitality market, Guesty, raised $130 million in a Series F funding round in April.
Guesty said at the time that the growth in demand for short-term rentals had been outpacing that for hotels since 2022.
Vacation rental booking platform Airbnb said in October that it launched a service called Co-Host Network that lets property owners find help with things like setting up listings, managing bookings and communicating with guests directly from the Airbnb app.
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