Vacation rental management platform Vacasa announced that it acquired Wyndham Vacation Rentals from Wyndham Destinations for $162 million, financed through a combination of $156 million cash and $10 million in Vacasa equity.
And while yes, you can rent a vacation home through Vacasa, the real thing that differentiates them from Airbnb, HomeAway and VRBO is that they offer vacation rental management, as well as a platform for buying and selling vacation rentals.
Now that the company has finalized its deal with Wyndham, it will manage more than 23,000 homes across North America, Europe, Central and South America, and Africa.
“The Wyndham Vacation Rentals team brings a tremendous amount of hospitality expertise, and we are excited to welcome them to Vacasa,” said Eric Breon, founder and CEO of Vacasa. “Our industry-leading yield management and marketing will generate optimal revenue for homeowners, and the unity of our local teams will continue to create five-star experiences for our guests.”
The company says it expects the Wyndham Vacation Rental brands (which include Corolla Classic Vacations, Hatteras Realty, Kaiser Realty, Oceana, ResortQuest, ResortQuest Whistler, Smoky Mountains Property Management, and Vacation Palm Springs) to be completely integrated by the fall of 2020.
The company will also absorb the management of 140 homeowners associations, bringing the total HOAs under management to 156.
“Throughout the past few months, our team has worked closely with Vacasa leadership to establish a path forward for Wyndham Vacation Rentals, our shareholders, our homeowners, our guests and our associates,” said Michael D. Brown, president and CEO of Wyndham Destinations. “We believe this transition will maximize the value and strengthen the long-term success of all entities. Our confidence in this strategy is reflected in the equity interest we have retained in Vacasa, and we look forward to the evolution of this thriving business.”
Vacasa also recently announced a $319 million strategic investment round led by technology investment house Silver Lake, who joins existing investors Riverwood Capital, Level Equity, and NewSpring, who also participated in the capital raise.
“Vacasa has spent the past decade bringing innovation to the $100 billion global vacation rental industry,” said Joerg Adams, managing director at Silver Lake. “We believe Vacasa, with its differentiated technology platform that’s already the market leader in North America, has the potential to become a global brand that stands for superior financial returns for homeowners and exceptional experiences for guests.”
This latest round brings the company’s total value to nearly $1 billion.