Expanding Business Services and Enhancing Tech Features
The startup company, which has now raised $110 million in total business funding, will use the proceeds to support its business growth and its technology, the company said.
“This news cements Guesty as the highest-funded and largest property management software fueling the alternative accommodation ecosystem for businesses of all shapes and sizes worldwide,” co-founder and chief executive Amiad Soto wrote in a blog post.
According to Soto, the property management company Guesty utilizes artificial intelligence (AI) capabilities to categorize and route 80% of guest messages. Therefore, the company will use a portion of proceeds to further enhance the usage of AI technology.
The startup also intends to continue developing its marketplace of third-party integrations after it expanded its set of offerings in the past year and included multi-unit listings and “aparthotels.”
“In the public markets, there are many players in hospitality property management. The same thing goes with residential property management. In short-term rentals, there’s no public player — you can bet your money that we are eyeing that target,” Soto added.
In separate news, the business also announced it has acquired a property management rival YourPorter, which will allow the property management company to provide its business services to more companies.
The Dutch startup is focused on mobile-first products and its acquisition will help Guesty to power different hosting businesses, from small, family-run operations to enterprise-sized hospitality brands. The YourPorter business acquisition comes just a few weeks after the startup bought property management startup MyVR.
“Instead of all of us duplicating resources, why won’t we share resources […] and create a much broader product?” said Soto, suggesting that the company is interested in making additional business acquisitions in the future.
But some in the industry are skeptical about Guest’s ability to continue dominating the short-term rental tech sector. Multiple publicly held tech companies forayed into the hotel sector a few years ago and developed property management systems used by a number of big names. Prior to the coronavirus outbreak, AccorHotels hired tech company Sabre to build a core hotel tech stack.
The COVID-19 pandemic was an additional boost to Guesty as a result of a surge in vacation and short-term rentals. Reservation volume for summer 2021 soared 282% compared to last year in the US and was up 32% compared to the pre-pandemic summer of 2019, Guesty said.
Soto notes a message from the CEO of Airbnb (a Guesty partner), who recently said his “company will need millions more hosts to meet surging demand.”
The property management startup company also announced that Daniel O’Keefe, Managing Director at Apax Digital, will join Guesty’s board of directors.
Property management startup Guesty secured $50 million in a new financing round, led by Apax Digital Fund, with the raised proceeds to be used for continuing business investments in its AI technology and growth. Moreover, the company also announced it bought property management rival Your Porter.
About the Author
Mariliana has an MSC in Consumer Analytics and Business Strategy. She has a special interest in fast-moving industries and Big Data.