14 Y/O Renowned, Colorado Ski-Country Vacation Rental Management Firm with Properties in Multiple Markets
Rapidly Growing Vacation Hotspots; Dominant Presence in the High-End Rental Market; Well-Established Management Team; Projected Revenues of $14MM
The company, established in 2007, is a high-end, regional vacation rental leader managing high-end rentals in multiple Colorado destination markets.
The Company’s high service model and demonstrated revenue generation is key to acquiring and retaining clients, consisting of affluent owners of seven-figure second homes. The disciplined focus on this niche has helped drive above-market commission rates, greater than average length of stay, and high fixed cost efficiency as a result of above-average cost of stay per property and vertically integrated services such as hot tub maintenance, housekeeping, and laundry.The Company is a differentiated VR company with strong regional market share and an exceptional national reputation, well-positioned to serve a client base who became long-term partners and are not well served by more commoditized VR management providers.
The Company sustains growth through the disciplined acquisition of high-end properties and relentless focus on service and customer experience for owners and renters alike. Its established, defensible, and growing base of high-end vacation rentals and replicable market expansion strategy has planted the Company in a prime position to both grow in its current markets and expand into other regional ski or sun/fun destinations.
The Company focuses on quality of property as opposed to volume to create a hedge against multi-state competitors, capture higher value guest and trip spend, minimize overhead, drive maximum revenue per property, and provide a clear niche target for marketing to homeowners and guests. Over the last two seasons, ADR grew 13.7% from $459 to $522, and avg reservation value grew 32% YoY from $1.94k to $2.56k.
The business is poised for continued growth with industry reports suggesting pent-up demand will lead to strong years to come in the vacation rental industry. The Company’s current markets are growing faster than the industry average for other similar destinations and expect a strong 2021/22. Conservatively projected revenue for 2021 is expected to reach ~$14M (EBITDA $2.0M+), with average revenue per property ranging from $60- $80k across the Company’s current markets through the 2021/2022 season.
Purchase Considerations
- The company is a differentiated, tech-enabled vacation rental management company serving the high-growth ski country destination markets.
- The Company’s proven growth strategy has established a dominant presence in the high-end vacation rental markets in current markets with the opportunity to expand to other similar “Sun and Fun” destinations.
- With an established management team in place, overseeing substantially all operations and growth, the Company is poised for expansion in both current markets and new markets.
- The Company’s powerful brand presence, strong marketing, and customer engagement strategies, and superior ability to serve owners of top-performing, premium properties has granted them exclusive management rights to a large portfolio (and rapidly growing) of rental homes.
- Despite the industry-wide decline in travel due to COVID in 2020, the Company has shown high YoY growth on nearly every key financial metric in both markets.
Certain principals of Raincatcher are registered representatives offering securities and investment banking services through Britehorn Securities, a registered broker-dealer (member FINRA/SIPC). Britehorn Securities and Raincatcher are not affiliated entities.
Negotiable