Hospitality platform AvantStay raises $500m in PropCo funding round
AvantStay, a US-based hospitality platform, has raised $500 million in a funding round to create a property company subsidiary.
The financing round was led by Saluda Grade, a real estate advisory and asset management company.
AvantStay said that the property company (PropCo) fund serves as its first foray into the short-term rental (STR) industry and its maiden securitization in the asset class.
Ryan Craft — Founder and CEO of Saluda Grade said: “We believe AvantStay’s dynamic and fast-growing customer base makes them the perfect partner for our firm to finally enter the burgeoning STR space.
“We were attracted to their higher yielding product and differentiated channels of supply, and we are confident they will continue to lead the industry with their robust offering of hospitality, tech, design and real estate as an all-in-one package.”
Saluda Grade had also taken part in AvantStay’s $160 million Series B funding round in late 2021.
According to AvantStay, the institutional PropCo investment from Saluda Grade further enables it to establish a new precedent for best practices with local communities as well as their governing bodies.
AvantStay will now look to enlarge its portfolio and further grow into new markets across the US with a goal to manage the largest luxury home portfolio.
Presently, AvantStay has more than 1,000 vacation rental homes in 100 plus cities in the US and Cabo San Lucas.
Sean Breuner – CEO and Founder of AvantStay said: “AvantStay continues to break barriers for the STR industry. With this new capital and partnership with Saluda Grade, we will pioneer and institutionalize a new asset class that will inevitably pave the path for travelers to have a better experience and for investors to generate attractive returns.
“I couldn’t be prouder of the entire team for what we’ve achieved over the last few months, as this news follows our Series B announcement in December. Our accelerated growth shows there is a deep understanding of our offering.”