The short-term rental industry is highly fragmented, leading to the potential for consolidation among companies in the space. Tel Aviv-based Guesty recently announced the acquisition of Barcelona-based Rentals United, a competitor that offers distribution services known as channel management. Guesty’s CEO, Amiad Soto, believes in consolidation in the industry in order to provide a better customer experience and improve products. The acquisition comes after Guesty’s recent Series F funding round of $130 million, and is part of a trend of acquisitions in the industry over the past few years.
Guesty has made several acquisitions in recent years, including marketing distribution platform Staysense, hospitality software firms Kigo and Hirum, and hotel revenue and distribution platform YieldPlanet. While Guesty is not yet profitable, Soto forecasts that it will become profitable this year. The acquisition of Rentals United will bring together their respective teams, with Rental United’s 80 employees joining Guesty’s 750. This move is seen as a way to strengthen Guesty’s distribution network, help scale the business, and develop new products, such as efficiency tools using artificial intelligence.
The short-term rental industry is at an “inflection point” in terms of distribution, with channel managers like Rentals United facing pressure from property-management software providers like Guesty, Hostfully, and Track. These software providers are building their own connections to major short-term rental platforms, potentially reducing the need for standalone channel managers. Amber Carpenter, senior vice president of product and marketing at Vtrips, expects standalone channel managers to either add PMS functionality, sell to a PMS, or face extinction as short-term rental managers seek to simplify their tech stacks.
While both Guesty and Rentals United offer distribution services, Guesty’s focus is on distribution to major platforms like Airbnb, Expedia, Booking.com, and TripAdvisor, while Rentals United provides connections to niche online travel platforms. According to Soto, Rentals United is a profitable market leader and was not under pressure to make the deal. Guesty’s acquisition of Rentals United is expected to enhance its distribution network, help scale the business for both sets of customers, and further develop sophisticated products leveraging AI technology. Guesty, which has received a total of $410 million in funding to date, has aspirations to go public in the future, but no specific timeline was provided for this goal.
