Vacation Rental Pros Property Management, LLC, one of the vacation rental industry’s fastest growing management companies, reached an agreement to acquire three additional vacation rental companies in New Mexico and Tennessee.
The move adds an additional 500 vacation rental properties to the management portfolio of Vacation Rental Pros, giving the company over 2,100 total properties under exclusive management contract.
Vacation Rental Pros enters the New Mexico market with the acquisition of Condotel in Ruidoso New Mexico, and Kokopelli with locations in Angel Fire, Taos and Sante Fe New Mexico. The company also announced the purchase of the post-wildfire owner contracts of SmokyMountains.com in Gatlinburg.
To support its future growth, Vacation Rental Pros announced the completion of $27 million in bank debt. On December 28, 2016, Fifth Third Bank approved $20 million in commercial bank debt to Vacation Rental Pros Property Management, LLC (“VRP”).
On December 28, 2016, Gladstone Capital invested $7.0 million in VRP through secured second lien debt to support the company’s continued growth and expansion into new markets.
According to Steve Milo, the owner, founder and managing member of Vacation Rental Pros, the ability of the company to raise a large debt round shows the strength of Vacation Rental Pros business model. “While several of our high profile competitors continue to raise equity, Vacation Rental Pros is able to raise market rate commercial debt based on the strength of our financial statements. The strength of our business model is what separates us in the industry. We are able to achieve both growth and profitability at the same time. As a result, we have been able to avoid equity partners and warrants and have all the options open to us for future growth.”
Vacation Rental Pros is a growing and innovative property management and rental reservation system which leverages a proprietary technology platform to maximize occupancy and revenue. As a result of the Company’s integration platform and marketing expertise, the company is successfully expanding through both acquisition and organic growth into its new markets. The acquisition of Kokopelli, Condotel, and Smoky Mountains are the sixth major acquisition in 12 months for Milo’s company which forecast’s growth of 70% in 2017.
According to Steve Milo, there will be additional acquisitions in 2017 with several more to be announced in the early 1st quarter which is the off season for some property management companies in North America.
“Vacation Rental Pros is getting approached by more and more sellers as the vacation rental market gets more and more complex due to technology and the significant changing business models with online travel sites,” said Milo. “Vacation Rental Pros has built the best technology platform model in the industry to expand in both a scaleable and sustainable manner. We have built this platform through a focus on technical and operational efficiency which translates nicely to expanding incremental profitability. We have a powerful mix of robust growth, profit and no dilution of equity.”