Wed, 04 Sep 2024 | BUSINESS SALE
A holiday home management company based in the North East has secured a new investment and simultaneously completed two acquisitions as it accelerates its buy-and-build growth strategy.
Founded in 2018 by entrepreneur Dale Smith, Teesside-based Host & Stay, part of the SDDE Smith Group, handles the end-to-end process of holiday home management through its in-house team. The company’s services cover booking generation, marketing, housekeeping, maintenance and compliance.
The company has now secured a £10.5 million investment from Growth Partner, which is backed by HomeServe founder and chairman Richard Harpin. It has also acquired Norfolk Holiday Properties and Airhost for You, with the two deals completed in parallel with the new investment.
The acquisitions bring more than 230 new properties into the Host & Stay business, while expanding its regional footprint. Norfolk Holiday Properties provides management services to 130 properties across Norfolk, while Airhost for You manages 105 properties in Brighton.
The deals follow the company’s previous acquisitions of Liverpool-based property management firm Host So Simple and Canterbury-based Blue Fox Rentals.
The company has achieved strong year-on-year growth, capitalising on the significant expansion of the UK £2.5 billion staycation market over recent years, and aims to continue to grow through organic customer acquisition and a buy-and-build M&A strategy moving forward.
The deal was led by Alex Marsh, a partner at Growth Partner, with support from Investment Manager Jade Kelsall and Investment Associate Clarke Sorrell.
Alex Marsh said: "We're very excited to announce our latest investment in Host & Stay, a truly disruptive force in the holiday let and short-term rental management sector. Dale's vision and execution have transformed H&S from startup into one of the market leader's with over 1,000 properties under management in just five years. This rapid growth and innovative model have made H&S a standout in the booming £2.5 billion UK staycation market.”
Marsh added that Growth Partner’s investment and support “will fuel H&S's buy-and-build strategy as they build towards national coverage."
Dale Smith commented: "After several years of growing Host & Stay organically from a single property to one of the largest short term rental management agencies in the UK, we're truly excited to be partnering with Growth Partner for our next phase of the journey."
"Alex and the wider Growth Partner team have been exceptional to work with throughout the investment process and they have approached the partnership in a collaborative and pragmatic way from day one. This approach has only further strengthened my confidence that we have chosen the right investment partner, and along with the vast experience and strategic influence of Richard, we're now in a fantastic position to accelerate the growth of Host & Stay both in the UK and overseas."
Richard Harpin added: "Host & Stay embodies the entrepreneurial spirit and commitment to excellence that drives true innovation in any industry. Dale Smith and his team have harnessed a unique market opportunity and are poised for tremendous growth. Our backing will support H&S in its journey to set new benchmarks in the holiday let and rental management space."
Read more about M&A in the global travel and tourism sector
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