Holiday rental property management platform Guesty has completed a $170 million funding round to fuel international expansion and growth in new verticals.
The US and Israel-based firm said the Series E investment said the round was a vote of confidence in travel and the short-term rental sector.
The round was led by the Apax Digital Funds, MSD Partners and Sixth Street Growth and existing investors Viola Growth and Flashpoint also participated.
J.P. Morgan Securities acted as sole placement agent on the transaction.
Amiad Soto, Guesty co-founder and chief executive, 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 prioritizing 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.”
Dave Evans, partner at Apax 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.”
Guesty’s latest funding round comes after the firm tripled its valuation and doubled its revenues since its last raise.
In 2021 and 2022, Guesty launched a series 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 property management of short-term rentals.
The firm said its sustained growth “has it positioned to reach $100 million in revenues within the next year”. Guesty previously acquired property management platform companies MyVR and YourPorter and plans further acquisitions in the near future.
Dan Bitar, managing director and co-head of MSD Growth, said: “In a largely specialized and localized 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, added: “The tech-enabled real estate ecosystem continues to grow and mature, and we look forward to joining Guesty on its journey to democratize 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.”