A roundup of interesting 2023 deals
We cover the 2023 deals that have been made public and/or are of interest.
There are considerably smaller deals across the globe, and through 2024, we will be bringing more local deals and opportunities, as witnessed on VRMX.io
1. Raus' Funding Boost for Expansion
Germany's Raus, a cabin rental startup, had secured over €8.5 million in funding, led by ROCH Ventures and including Rockaway Ventures, Dupuis Investment, and others. They also received an asset-backed lending facility from Varengold Bank. The funds were intended to aid Raus' expansion into Austria and to enhance its technology and products, including the newly launched Cabin Model 2.0. The company, with a growing cabin network in Germany, reported a 500% revenue increase year-over-year and planned to further expand its footprint and community locations.
2. Foothold's Crowdfunding Platform Launch
US-based Foothold launched its real estate crowdfunding platform, allowing both accredited and non-accredited investors to invest in unique hotels and glamping spaces. After achieving SEC compliance, the platform aimed to simplify real estate investment and provide discounts for investors staying at these properties. The focus was on unique architectural designs worldwide, with upcoming investments like the 'Patagonia Mirror Hotel' and expansion plans for local investors in the US starting in 2024.
3. LUGGit's Financing Round
Spain/Portugal's LUGGit, a professional luggage management service, completed a €1.8 million financing round led by GED Ventures Portugal and Caixa Capital, with Portugal Ventures also investing. Since its inception in 2019, LUGGit had expanded its services to five European cities and planned further growth. It managed over 50,000 pieces of luggage and aimed to open in seven new European cities, enhancing tourist experiences with luggage-free travel.
4. Smartpricing's Series C Funding
Italy's Smartpricing, a hospitality revenue management software startup, raised €13 million in a Series C round, combining equity and bank credit lines. The funding, led by Partech and others, was used to expand its rate management solutions and develop its AI technology. Active in 17 countries and used by over 3,000 hosts, Smartpricing focused on the Italian and DACH markets and planned to launch new products in the hospitality sector.
5. TrustedHousesitters' Management Buyout
UK's TrustedHousesitters underwent a management buyout backed by Mayfair Equity Partners, leading to Mayfair holding a majority stake. The transaction, valuing the business over $100 million, involved Mayfair partnering with TrustedHousesitters' management for growth and product innovation. The company, operating in 140 countries, had experienced significant growth and aimed to expand in its core markets.
6. Minut's Extended Series B Funding
UK/Sweden's Minut extended its Series B round to $20 million with an additional $5 million from Smedvig Capital. The investment followed rapid growth and product enhancements, focusing on the short-term rental space. Minut's technology, including new sensor features and cigarette detection, aimed to make hospitality safer and more efficient.
7. Situ's Acquisition of Rentivo
UK's Situ, a corporate accommodation booking agent, acquired Rentivo's technology stack, integrating the short-term rental space with Situ's corporate housing inventory. The acquisition aimed to distinguish professionally managed properties in the extended-stay sector, enhancing inventory access for travel and relocation management companies.
8. Host & Stay's Acquisition of Blue Fox Rentals
UK's Host & Stay acquired Canterbury-based Blue Fox Rentals, expanding its portfolio to over 1000 properties. The merger aligned shared values and focused on quality management and customer relationships. Host & Stay planned further growth in the UK market, continuing its organic expansion strategy.
9. Alloggio's Australian Acquisitions
Australia's Alloggio continued its expansion with the acquisition of Holiday Coffs Coast and Bella Coastal Holidays, enhancing its presence in New South Wales' short-term rental market. The acquisitions, part of Alloggio's growth strategy since its IPO, solidified its footprint in key Australian tourism destinations.
10. HomeToGo's Strategic Acquisition
Germany's HomeToGo acquired a majority stake in KMW Reisen GmbH and Super Urlaub GmbH, marking its largest acquisition to date. The €31 million deal aimed to strengthen HomeToGo's marketplace offerings, particularly in thematic travel bundles, and to enhance occupancy and traveler engagement.
11. Villages Clubs du Soleil's Market Expansion
France's Villages Clubs du Soleil acquired Vacancéole, expanding its holiday rental services in the French market. The acquisition positioned the company strategically for the upcoming Paris 2024 Olympics, although potential short-term rental regulations could impact the industry's dynamics.
12. Viadi Group's Acquisition of Edge Retreats
London's Viadi Group acquired Edge Retreats, adding to its portfolio of luxury vacation rentals. This acquisition complemented Viadi's existing brands, expanding its global reach and client base, with a focus on delivering high-end travel experiences.
13. TPG's Vacation Rental Strategy
US-based TPG made a significant move into the vacation rental market by acquiring single-family homes in Florida for short-term rentals. Partnering with Kasa, this strategy targeted "bleisure" travelers and challenged the traditional hotel industry with premium nightly rentals.
14. RentRedi's Strategic Acquisitions
US's RentRedi, a PropTech firm, expanded with the acquisition of eRentPayment and PaymentReport. This strategic move enhanced RentRedi's technology, broadened its customer base, and strengthened its position in the PropTech space, offering comprehensive rental management features.
15. Hostaway's Major Funding Round
A global startup, Hostaway, received $175 million in funding to enhance its vacation rental management software. With profitable operations and a presence across 100 countries, Hostaway aimed to expand its platform, customer base, and acquisitions, focusing on the vacation rental market.
16. Black Swan Holdings' Acquisition of Lyric
Florida-based Black Swan Holdings acquired former rental operator Lyric, planning to relaunch and rebrand it to meet rising travel demand and compete with hotels. This strategy included expanding Lyric locations across the US, focusing on luxury standards and the growing trend of remote work.
17. Superhog's Funding Achievement
Superhog, focusing on risk management in short-term rentals, raised $6.7 million in Series A funding. The investment was used to boost its risk assessment technology and global presence, particularly in the US, supporting over 800 property management companies worldwide.
18. UnderTheDoormat Group and Veeve Merger
Two UK-based short-term accommodation brands, UnderTheDoormat Group and Veeve, merged in a share exchange in 2023. The combined entity integrated sub-brands such as “Hospiria” and “TrustedStays,” linking short-term rental companies with the global distribution system Amadeus and the corporate travel market. Headquartered in London, the company operates across the UK, Europe, Middle East, North America, and Asia, with core operations in London and Paris. Merilee Karr, CEO of UnderTheDoormat group, led the merged group. The merger was fueled by £4 million ($5 million) in combined investment from Smedvig Capital, Second Century Ventures, and other UnderTheDoormat Group investors.
19. DoveVivo Group's Rebranding to Joivy
Italian property management firm DoveVivo group, alongside its affiliate brands including UK-based Altido and French brand Chez Nestor, rebranded to Joivy in 2023. The joint entity, offering student housing, short-term rentals, multifamily apartments, and co-working spaces, operated 4,000 units in 50 destinations across six European countries. The rebranding aimed to communicate a new identity to B2B partners and landlords, reflecting its global operations. The group's revenue grew from 40 million euros to a projected 110 million euros in 2023.
20. Numa Group's Acquisition of YAYS Group
Berlin-based hospitality brand Numa Group acquired Dutch aparthotels operator YAYS Group from Proprium Capital Partners in 2023. The deal details were undisclosed but likely funded with Numa’s $59 million fundraising round. The combined entity held over 5,200 units, adding YAYS Group's 489 units in the Netherlands, Belgium, and France to Numa’s portfolio. Numa, founded in 2019, had a portfolio of 4,500 units in ten countries and 28 European cities.
21. Reapit and PayProp Merger
Proptech solution providers Reapit and PayProp merged in 2023, backed by investment from Accel-KKR. This combination aimed to deliver comprehensive services across sales, letting, property management, and secure automated disbursement of payments. Reapit, with a strong presence in several countries including the UK and Ireland, and PayProp, serving a large group of agents in the UK, South Africa, Canada, and the US, aimed to transform the property sector digitally.
22. Mondee's Acquisition of Purplegrids
Travel company Mondee acquired AI firm Purplegrids in an all-stock deal valued at approximately $19 million. Purplegrids' technology, including large language models and AI tools, was intended to be integrated across Mondee's business, including its AI travel assistant and back-office operations. Mondee contracted Purplegrids to develop its AI-powered platform before the acquisition, which marked Mondee’s first tech acquisition and its fifth acquisition of the year.
23. Airbnb's Acquisition of GamePlanner.AI
Airbnb publicly filed documents showing its acquisition of AI company GamePlanner.AI, partially paid with stock valued at about $104.5 million. The filings detailed the offering of 877,062 shares to key recipients, including co-founders Adam Cheyer and Siamak Hodjat. This acquisition was part of Airbnb's strategy to integrate advanced AI technology into its operations.
24. Frontdesk's Acquisition of Zencity
Frontdesk, managing furnished apartments in over 30 US markets, acquired Chicago-based Zencity. The deal, terms undisclosed, added about 200 suites in Chicago, Kansas City, and St. Louis to Frontdesk’s portfolio of approximately 1,000 units. The Zencity brand was set to cease, with its founder and CEO, Christopher Lawrence, joining Frontdesk as Chief Strategy Officer.
25. Blueground's Acquisition of Nestpick
Property management company Blueground acquired Nestpick in an equity-based deal. Nestpick, a platform for month-to-month rentals of furnished accommodation, joined Blueground's attempt to build a partner network listing vetted third-party inventory. The network aimed to add over 18,000 units to Blueground's global network, with the goal of reaching 50,000 units by 2024.
26. Guesty's Acquisition of StaySense
California-based property management software company Guesty acquired vacation rental tech platform StaySense. StaySense, providing marketing and tech solutions to vacation rental managers, integrated its technology into Guesty's platform to enhance direct booking and marketing tools. This acquisition marked Guesty's sixth, continuing its expansion in vacation rental tech.
27. Bob W's Acquisition of Charly Hospitality
Finnish short-term rental operator Bob W acquired Munich-based competitor Charly Hospitality. The deal enabled Bob W to expand in Germany and add seven properties in various European cities to its portfolio. The acquisition, financed by a €21 million Series A funding round, was part of Bob W's growth strategy in the European market.
28. Mews' Acquisition of Hotello
Hotel tech startup Mews expanded into North America with its acquisition of Montreal-based Hotello, a hotel property management system with over 500 hotel customers in the region. The acquisition aimed to triple Mews' customer base in North America, contributing significantly to its growth strategy and technological advancement in the hotel tech sector.
29. Travelsoft's Acquisition of Travel Compositor
Paris-based Travelsoft acquired Spain-based Travel Compositor, a provider of travel booking engines. The acquisition expanded Travelsoft's transaction volume to €5 billion annually, growing its global employee base and R&D investment. Travelsoft, also owning Traffics and Orchestra, continued to consolidate its presence in the travel software market.
30. Travel+Leisure Group's Sale of Love Home Swap
American timeshare company Travel+Leisure Group, formerly Wyndham Destinations, sold its British subsidiary Love Home Swap to HomeExchange. The Paris-based HomeExchange, specializing in home exchange vacations, did not disclose deal details. The acquisition marked HomeExchange's growth in the UK, Australia, and the US markets, fitting into its strategy of market expansion.
