Guesty Secures $130M Funding to Expand Accommodation Platform

Travel and tourism are booming, and Guesty, a platform for accommodation managers, has raised $130 million in funding led by KKR, valuing the company at around $900 million. With a 5x increase in revenue over the last 3 years, Guesty expects to become profitable this year. The funding will be used to expand its platform, enter the medium-term space, and potentially make acquisitions, as the global travel and tourism sector rebounds post-Covid.

Key Takeaways

• Guesty, a platform for accommodation managers, raised $130 million, with a post-money valuation of around $900 million.
• The company's revenue has grown 5x in the last 3 years, and it aims to turn profitable this year.
• The global travel and tourism sector is rebounding post-Covid and is expected to generate record-high sales of $11.1 trillion in 2024.
• Guesty plans to use the funding to expand its platform for current customers, venture into medium-term rentals, and consider acquisitions.
• Investors are still willing to sign term sheets in the right circumstances, with various tech companies in the travel space raising substantial funding rounds.

News Content

The travel and tourism industry is experiencing a strong rebound post-Covid, with Guesty, a platform for accommodation managers, securing a significant $130 million funding round led by KKR. The Series F values Guesty at around $900 million post-money, with the company reporting a 5x revenue increase in the last three years. The funding will support the company's expansion into medium-term rentals, potential acquisitions, and continued platform enhancements.

The surge in the travel and tourism sector post-Covid has led to significant funding rounds for companies in the accommodation management space, as evidenced by Guesty's latest funding round and its plans for expansion into new rental segments and potential acquisitions. With strong investor interest, Guesty aims to further develop its platform and meet the growing customer demand in the industry.

Analysis

The strong rebound of the travel and tourism industry post-Covid is driving significant funding rounds, as seen with Guesty's $130 million funding led by KKR. This surge has direct impacts on Guesty, supporting their expansion and platform enhancements, while indirectly affecting the broader accommodation management sector and potentially leading to industry consolidation. Short-term consequences include immediate growth opportunities for Guesty, while long-term effects may involve increased competition and market saturation, impacting profitability and market dynamics. The funding also reflects investor confidence in the post-Covid travel sector and signals a shift towards medium-term rentals, potentially reshaping the industry landscape.

Do You Know?

• Series F funding round:

  • This refers to a round of funding in which a company raises capital by selling shares of its stock to investors. The Series F round typically occurs after several earlier rounds of funding (Series A, B, C, etc.) and is used to support the company's growth and expansion plans.

• Post-money valuation:

  • Post-money valuation is a financial term used to measure the value of a company after a round of investment or financing has been completed. It takes into account the existing value of the company plus the additional capital raised in the investment, providing a snapshot of the company's total value after the new funding has been incorporated.

• Medium-term rentals:

  • This term refers to a segment of the accommodation rental market that typically encompasses rental durations longer than traditional short-term stays (such as vacation rentals) but shorter than long-term leases. This expansion indicates Guesty's intention to broaden its services beyond its existing focus on short-term accommodations.