Tarsadia and 3L lead equity round with Capital One Ventures, existing investors and new key strategics.
LOS ANGELES, CA. – AvantStay, premier next-generation hospitality platform redefining the way in which people travel, transact, and invest in the STR (Short-Term Rental) industry, announced the closing of a $160 million Series B funding round. This new capital will be used to support the company’s continued growth, including expansion into new markets, advanced technology offerings, elevated customer experience, and the national launch of its brokerage services.
This round is co-led by Tarsadia Investments, a Newport Beach-based family office with a multi-billion dollar permanent capital base focused on partnering with durable transformative companies for the long-term, and 3L Capital, a multi-stage global growth equity firm that invests across tech-enabled consumer and enterprise businesses.
“It’s become clear that consumer preferences are changing and that the hospitality industry is going through a paradigm shift. AvantStay’s blistering growth happens when market pull, a culture of innovation, and relentless execution collide. We are incredibly excited to partner with Sean and the team as they continue to scale a vertically integrated hospitality brand of the future centered around best in class talent, technology and operations,” said Rishi Reddy, Managing Director at Tarsadia.
Since AvantStay’s Series A funding round of $20+ million in 2019, led by 3L Capital, the company has added 700+ homes and 80+ new destinations. Existing investors such as Bullpen Capital, and Convivialite are joining the new round. New investors to the round include Capital One Ventures, strategic real-estate and prop-tech investors including Saluda Grade, Greenhawk, Stephen Pagliuca, Fred Tuomi, Jerry Coleman, Jay McKee, and celebrity investors including Plus Capital, Paul George, Shawn Mendes, and others.
“Since we led AvantStay’s Series A investment over two years ago, we’ve watched the company not only grow their supply and revenue tenfold, but also navigate one of the worst possible macro shocks that occurred in the hospitality industry,” said Jodi Kessler, Partner at 3L. “Their incredible execution and resilience, combined with a massive tailwind in the travel sector for AvantStay’s product makes us excited to double down on and support the team as they continue to build both a world-class hospitality brand for travelers, and a vertically integrated platform through which individuals and institutions can invest in short-term rental properties.”
“The industry has seen monumental changes and expansion with new and differentiated offerings for the way people want to travel today. This round of funding serves as a powerful catalyst to our company’s explosive growth as the leading short-term rental brand in the US,” said Sean Breuner, CEO and Founder of AvantStay. “With Tarsadia, 3L, and our other investors' support, we can continue to build a platform that meets the demands of guests who crave unique experiences and meaningful connections. Each of these companies has a deep understanding of the industry and will be instrumental partners in supporting our brand’s mission.”
This past year, AvantStay has more than tripled its portfolio to 1,000+ properties, increased the number of passionate team members to 400+ and secured strategic partnerships with top brands and celebrities. The company was ranked the 2nd fastest growing hospitality company on the Inc. 5000 list, which highlights the nation’s fastest-growing private businesses.
AvantStay continues to set a new standard for the STR industry with technological advances including industry-leading click-to-touch concierge and value-add services, robust group booking capabilities, and a fully integrated IoT suite all powered by their proprietary operating platform Voyage.
“Our advanced proprietary tech platform enables us to deliver highly curated experiences customized to our guests’ needs,” said Reuben Doetsch, CTO and Co-Founder of AvantStay. “This year we’ve continued to improve our world-class platform that allows us to source, underwrite, design, onboard, distribute, and manage properties at scale. With this capital, we are doubling down on integrating the analog and digital to create seamless unforgettable experiences and stays for our guests.”
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