Tel Aviv-based Guesty, a leading provider of property-management system tools for the vacation-rental industry, has announced its acquisition of Rentals United, a Barcelona-based company renowned for its distribution services, also known as channel management.
The terms of the deal remain undisclosed, but Guesty CEO Amiad Soto emphasized that Rentals United will retain its brand identity and leadership structure post-acquisition. Soto articulated his belief in industry consolidation, citing the need for a cohesive approach to product development and customer service within the fragmented vacation rental sector.
Guesty's recent Series F funding round, which amassed $130 million, has empowered the company to pursue strategic acquisitions over the past three years. Prior to Rentals United, Guesty integrated marketing distribution platform Staysense, hospitality software firms Kigo and Hirum, and hotel revenue and distribution platform YieldPlanet into its portfolio.
Despite Guesty's current status as a non-profitable entity, Soto anticipates profitability by the end of the year. Rentals United, on the other hand, is already generating revenue and will merge its 80 employees with Guesty's existing workforce of 750.
The acquisition comes at a pivotal moment for channel managers like Rentals United, facing increasing competition from property-management system (PMS) software providers such as Guesty, Hostfully, and Track. These PMS platforms are developing their own direct connections to major short-term rental platforms, potentially rendering standalone channel managers obsolete.
Amber Carpenter, Senior Vice President of Product and Marketing at property-management company Vtrips, remarked on the shifting landscape, predicting that standalone channel managers may need to evolve or risk obsolescence as PMS platforms incorporate native channel management functionalities.
However, Soto maintains a positive outlook on the acquisition, emphasizing Rentals United's profitability and market leadership in the short-term rental channel management sector. He views the deal as an opportunity to enhance Guesty's distribution network, cater to niche online travel platforms, and streamline the vacation rental management experience for both companies' clients.
Guesty's announcement underscores its commitment to leveraging the acquisition to scale its business, enhance distribution capabilities, and develop innovative products, including efficiency tools powered by artificial intelligence (AI). With $410 million in total funding to date, Soto reveals Guesty's ambition to go public, although a specific timeline has not been disclosed.
The acquisition of Rentals United represents a strategic move by Guesty to consolidate its position in the vacation rental management market, signaling a new chapter of growth and innovation for both companies and their clients.
