Hotel tech startup Mews has secured $100 million in venture credit from Vista Credit Partners, a subsidiary of Vista Equity Partners. The Amsterdam-based company primarily offers a property-management system for hotels, catering mostly to independent hotel companies. Mews has made nine acquisitions so far, with plans for more, as part of its strategy for rapid growth and expansion. These acquisitions have been aimed at adding staff and properties to the company’s portfolio, with one recent acquisition adding 3,500 properties. The hotel tech market is highly competitive, making consolidation a logical move for smaller companies. Mews, with its significant funding, is well-positioned to take advantage of this consolidation trend.
M&A has not been a growth strategy for Mews competitor Cloudbeds, as CEO Adam Harris believes that mergers can divert resources that would be better spent on improving the core product. He also suggests that tech transitions resulting from mergers can be problematic for clients. In contrast, Mews is actively pursuing acquisitions as part of its growth strategy, with a focus on investing in M&A through its investment and corporate development arm, Mews Ventures. The company has raised a total of $335 million in venture capital from various investors, including Goldman Sachs Alternatives, Kinnevik, and Revaia. In March, Mews raised $110 million at a valuation of $1.2 billion, surpassing $100 million in annual revenue and processing over $8 billion in gross transactions for hotels this year. Currently, Mews technology is being used by more than 75,000 hotel staff at over 5,500 properties in 85 countries.
Despite Mews’ success and growth in the hotel tech market, the company still trails behind market share leader Oracle Hospitality, which boasts approximately 40,000 properties in its portfolio. However, Mews is actively working to advance its technology and expand its client base. For example, the company recently introduced a new AI search tool that allows hotel staff to ask questions in everyday language, streamlining operations and improving efficiency. Mews’ focus on innovation and customer needs is driving its success in the industry. The company’s client base includes well-known names such as Generator-Freehand, Strawberry (formerly Nordic Choice), The Social Hub, and Airelles Collection. These partnerships highlight Mews’ reputation and growing presence in the hotel tech sector.
The funding from Vista Credit Partners will enable Mews to continue its acquisition strategy and further solidify its position in the market. Founder Richard Valtr believes that the market is ripe for consolidation, and Mews is well-equipped to take advantage of this trend. By acquiring smaller companies and integrating their technologies and resources, Mews can enhance its offerings and better serve its clients. While some competitors may view M&A as a risky move, Mews sees it as a key driver of growth and success. By leveraging its funding and expertise in the industry, Mews is positioning itself as a key player in the evolving hotel tech market. With plans for additional acquisitions and ongoing technological advancements, Mews is poised for continued expansion and success in the coming years.
In conclusion, Mews’ recent funding of $100 million from Vista Credit Partners will fuel its acquisition strategy and support its growth in the competitive hotel tech market. With a focus on consolidation and innovation, Mews has been able to expand its client base, increase its revenue, and enhance its technology offerings. The company’s success in acquiring smaller companies and integrating their resources has been a key factor in its rapid growth and market positioning. By staying focused on customer needs and advancing its technology, Mews is well-positioned to compete with industry leaders and continue its success in the evolving hotel tech sector. As the market continues to evolve, Mews’ proactive approach to growth and acquisitions sets it apart as a leader in the industry.
