Sykes Holiday Cottages has secured investment from private equity firm, Vitruvian Partners, which has previously backed Travel Counsellors, Skyscanner and Jac Travel.
The investment will fund the holiday home provider’s plans for UK and international expansion.
Vitruvian invested an undisclosed sum for a majority stake in Sykes and replace existing backers Livingbridge following their five-year partnership with the company.
At the time of Livingbridge’s investment in January 2015, Sykes managed 5,000 properties in the UK and Ireland and generated £17 million revenue. Today it manages over 15,000 properties and has had a record year with bookings up 26% year-on-year.
Graham Donoghue, chief executive of Sykes Holiday Cottages, said: “We’ve transformed the business within the last five years with the unwavering support from the Livingbridge team, and we are now in a strong position to scale further in what is a booming staycation market.”
Sykes saw profits rise to over £20 million during the year to the end of September on the back of £63 million of sales.
The new partnership will help the brand continue to invest in technology and people as it targets serving more than 3.5 million holidaymakers annually by the end of 2023 and growing its workforce to over 1,000 people.
Ed Arkus, a managing director at global investment bank Harris Williams – which advised the holiday firm on its sale – said: “Sykes is undoubtedly one of the biggest success stories in the European holiday home rental sector, with an unmatched organic and merger and acquisition-driven growth record in the UK, Ireland and New Zealand.
“It has been a pleasure to work alongside Sykes’ management team as well as to have the opportunity to advise Livingbridge on another exceptional result.”
More: ‘Staycation snacking’ boost for Sykes Holiday Cottages [July 19]
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