One of the US’s largest vacation rental management companies, Florida-based VTrips, received a “significant minority equity investment” from Hudson Hill Capital. According to the company, “all capital will be funded to the balance sheet,” and VTrips will leverage the investment to speed up its acquisition strategy and further strengthen its technology offering.
With this injection, VTrips expects to spend over $250 million to acquire attractive vacation rental management companies in the near future.
Founded in 2002 by CEO Steve Milo, VTrips offers full-service vacation rental management with most of its current inventory located in the Southeast US. Steve Milo, founder and CEO of VTrips, shared, “Our new investors have placed a significant vote of confidence in our vision, our people, and our technology that will further enhance the customer experience. This investment, combined with Hudson Hill’s track record of scaling businesses like ours will help us extend our market leadership through a carefully designed acquisition strategy that will further build our category defining technology and service offering. VTrips possesses a very promising future.”
According to Eric Rosen, managing partner of Hudson Hill Capital (HHC), “Steve has built VTrips into the leading independent vacation rental management platform and one of only a select number of operators with a multi-state footprint. Perhaps more notable about VTrips is its proven ability to operate effectively and profitably over multiple decades. HHC is excited to partner with Steve during the company’s next phase of growth and to use our collective experience to help build the company’s footprint both organically and through M&A, capitalizing on the tailwinds within the growing vacation rental market.”
Milo added, “This significant investment represents another key milestone for our company as the vacation rental resort market in North America continues to boom, especially in drive-to markets. There is far more demand than supply which has resulted in a more than 20 percent increase in average daily rates (ADRs) in many markets. COVID-19 accelerated the adoption of vacation rentals over hotels, and the sector also benefited significantly from social distancing, remote work. and remote learning which allows more flexibility for travel.”
VTrips has already completed three acquisitions in the first half of 2021, most recently acquiring Panama City, Florida-based Resort Collection with close to 800 units. The Resort Collection deal follows several other acquisitions in the Southeast region, including Distinctive Vacation Rentals in Ft Myers Beach and Resort Properties in Tennessee. The company has completed over 20 acquisitions since its founding.
According to Milo, owners of local property management companies are increasingly concerned about whom they sell to. “We are encountering more and more sellers who want a buyer that will hire all their staff, take care of their brand and legacy, and allow them to live in their community with pride. With this capital infusion, we are poised to accelerate our activity as a buyer and represent a unique landing place for an independent vacation rental operator.”
Milo will be speaking next week at the Vacation Rental Data and Revenue Management (DARM) Conference in Charleston, SC, Aug 17 – 18.