Hospitality management service Hostmaker has closed a new $6.5 million funding round led by Paris-based VC fund Ventech and existing investor DN Capital.
Founded in 2014, Hostmaker is a full-service Airbnb management company that takes the hassle out of managing short term rentals for homeowners. Hostmaker stated that it has grown 8X since inception and this latest investment round takes Hostmaker’s total funding to $9.3 million, more than any of its European hospitality management competitors. About a year ago, we mentioned Hostmaker as one of “10 British startups to look out for in 2016“.
The London-based startup stated that the fresh capital will be invested in strengthening Hostmaker’s leadership position in its existing markets London, Paris, Rome and Barcelona, four of the largest global markets for Airbnb. Hostmaker currently supports more than 1,000 homestay hosts in these four cities and foresees opportunity for extensive growth with 100,000 Airbnb listings currently active across the markets.
Hostmaker also plans to further develop its proprietary pricing algorithm and in-house yield experts, as well as enhancing its industry-leading tech offering, which includes a customer dashboard that will allow hosts to review their home’s performance related to earnings, maintenance and guest reviews across multiple platforms.
The company has pipeline interest from 25 cities across the globe and is carefully analysing opportunities to expand its service. Hostmaker is also considering the possibility of acquiring smaller high quality operators, in a premium homestay segment that has seen much recent consolidation such as Airbnb’s acquisition of Luxury Retreats and hotel group Accor’s acquisition of One Fine Stay.
Hostmaker assists hosts with listings, managing guest experience and hotel-style housekeeping, and the service includes the option of working with an in-house interior design team to enhance the appeal of the listed property. The Hostmaker service represents a hands-off solution for people who want to optimise their renting revenues without lifting a finger. Equally, Hostmaker caters for the new-age traveller seeking to combine the discovery of a homestay experience in a new city with the creature comforts of a premium hotel.
Since December 2014, 80,000 guests have stayed in Hostmaker managed properties, helping hosts to generate £10 million worth of bookings. In the past year, Hostmaker has been named #20 among the top 100 UK startups and also one of Forbes’ 5 British businesses to watch.
Alain Caffi of Ventech commented: “Thanks to its founder’s experience in the hospitality industry, Hostmaker brings the most sophisticated capabilities from the traditional hotel operators to the booming on-demand rental business. It brings tremendous value to Airbnb hosts by providing a hassle-free solution rewarding them with best in class yields and to guests by ensuring a consistent level of service on par with hotels.”