Fast-growing vacation rental company Vacasa announced Tuesday that it has just raked in $108 million in new funding.
The money is part of a Series D round led by venture capital firm Silver Lake, and with participation from Riverwood Capital and Level Equity. In a statement, Vacasa CEO Matt Roberts said that his company has “experienced challenges” during the ongoing coronavirus pandemic, but that the firm is also “incredibly fortunate for the continued support of our investors.”
“As we begin to emerge from this global crisis with an infusion of capital, we are in a very strong financial position to capture consumer demand,” Roberts added. “We believe there will be a preference shift from hotels to professionally managed vacation rentals as privacy and cleanliness rise to be top priorities for travelers.”
This latest funding round continues Vacasa’s streak of attracting high-dollar investments. In October, for example, the company revealed that it had raised $319 million, which it planned to use for expansion and technology improvements. The company also said that the October funding round sent its overall valuation above $1 billion.
Still, the current moment is a challenging one for any company in the travel industry. Vacasa has a few different revenue streams, but its primary service is managing and marketing rental properties in vacation-oriented locations on behalf of those properties’ owners. The company also manages entire communities, though they too are located in vacation destinations.
But during the coronavirus pandemic travel has largely ground to a standstill, meaning that companies from airlines to hotels to rental managers have all seen their revenue fall.
However, in its statement Tuesday, Vacasa indicated the industry may be turning a corner. Reservations in May, for instance, were six times higher than they were in April, “indicating an increased interest in leisure travel,” the company’s statement argues.
The firm’s booking window is also returning to normal and bookings are now taking place in 723 U.S. cities — up from only 357 during the height of the crisis.
It’s perhaps no surprise, then, that in a statement Silver Lake managing director Joerg Adams expressed excitement about working with Vacasa.
“We believe in the team, the business model and the customers and communities Vacasa serves,” Adams said. “This investment enables Vacasa to continue to innovate and to maintain its strong growth trajectory.”