Hostaway announces $365m strategic growth investment

Major deal was led by General Atlantic, with participation by PSG Equity

All-in-one vacation rental software and management system Hostaway has secured a $365 million strategic growth investment led by General Atlantic, a leading global growth investor, with participation from existing investor PSG Equity. 

Hostaway plans to partner with General Atlantic and PSG Equity to further propel its growth strategy, including international expansion, product development, and AI initiatives. 

Upon completion of the transaction, General Atlantic and PSG Equity will both be significant minority shareholders in Hostaway, and the investment will mark the largest transaction to date in Hostaway’s market segment. 

Hostaway became the first property management and channel management software company to earn the highest partnership designations from the three leading online travel agencies – Airbnb, VRBO and Booking.com – and it also currently has preferred relationships with Google, Expedia, and Homes & Villas by Marriott.

The company has recently launched a range of tools and add-ons to further address customer needs, including Dynamic Pricing by Hostaway, an automated solution to help customers maximize revenue; Hostaway Capital, to provide flexible loans specially catered to the property management sector; Hostaway Insurance, to provide coverage for property damage during a rental period; and Smart Lock integration to further streamline the property management and guest experience. 

It has also integrated AI in its automation tools to support property owners and managers across guest messaging, content creation, and language translation.

The short-term rental sector is a $133 billion GMV market that has grown at 12% CAGR over the last decade and currently serves over 21 million short-term rental properties globally¹. The market continues to professionalize with a growing number of property managers seeking software solutions to help expand and manage their increasingly complex businesses. Hostaway has expanded into key markets including France, Italy, and Spain, and intends to leverage General Atlantic’s expertise in scaling companies at the intersection of vertical software, integrated payments, and the travel and hospitality sector globally. 

“We are excited to partner with General Atlantic, a firm with deep global experience in our sector,” said Marcus Räder, CEO and Co-Founder of Hostaway. 

“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. 

"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. We have identified like-minded and decisive partners in General Atlantic and PSG Equity and are thrilled to collaborate with them on the next stage of our journey.”  

“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,” said Raph Osnoss, managing director of General Atlantic. 

“We greatly admire the company’s high velocity of innovation and dedication to supporting its customers, and we look forward to working with this impressive team.” 

Matthew Dorr, principal at General Atlantic, added: “We believe Hostaway is poised for continued growth, and we are thrilled to work alongside PSG to support the company across a number of value creation initiatives.”

“Our journey with Marcus and the wider Hostaway team began in 2023 and we have continued to be impressed with the quality, offering and strong growth of the platform,” said Edward Hughes, Managing Director at PSG.

“Hostaway has already grown three-fold since making our investment, which is a testament to the company’s deep expertise in the short-term rental property space and the strong global customer demand for its products."

He added: "There is a lot to be proud of and we are excited to continue to support Hostaway in this next chapter alongside General Atlantic.” 

William Blair and Cambon Partners acted as financial advisors to Hostaway.