Short-Term Rental and Travel Data M&A: A Founder's Guide to the 2025-26 Market
The short-term rental (STR) industry has undergone a dramatic transformation over the past decade, evolving from a fragmented collection of individual property owners into a technology-driven ecosystem valued in the billions. With the vacation rental software market valued at $1.5 billion in 2024 and projected to reach $3.2 billion by 2033 at a 9.2% CAGR, the technology layer powering this industry has become a prime target for mergers and acquisitions.
For founders of STR software businesses, whether you operate a channel manager, dynamic pricing engine, property management system, or travel data analytics platform, the current M&A landscape presents both opportunity and complexity. The sector has moved past its "growth at all costs" phase; the painful collapses of centralised operators like Sonder and Vacasa have recalibrated investor expectations. What has emerged is a market that rewards operational efficiency, data-driven insights, and the kind of sticky, recurring-revenue software that acquirers covet.
Guesty has completed five acquisitions since 2022, including the strategic purchase of Rentals United in May 2024. AirDNA expanded from data analytics into property management technology with its acquisition of Uplisting. Hostaway raised $365 million to fuel its own growth and consolidation strategy. These moves signal a clear trend: the STR software market is consolidating, and the window for founders to achieve premium exits is open.
This guide examines the M&A dynamics specific to short-term rental software and travel data businesses. It covers recent deal activity, valuation benchmarks, key acquirers, and practical considerations for founders evaluating their options.
Market Overview
The STR Software Landscape
The vacation rental software ecosystem encompasses several distinct but increasingly interconnected categories:
Property management systems (PMS) serve as the operational backbone for property managers, handling reservations, guest communications, maintenance scheduling, and financial reporting. Leading platforms include Guesty, Hostaway, Lodgify, Hospitable, and Cloudbeds (which spans both hotel and STR segments).
Channel managers distribute listings across platforms like Airbnb, Vrbo, Booking.com, and direct booking websites. Rentals United (now part of Guesty), NextPax, and Uplisting (now part of AirDNA) are notable players.
Dynamic pricing tools use algorithms and market data to optimise nightly rates. PriceLabs, Beyond (formerly Beyond Pricing), Wheelhouse, and DPGO compete in this space, with increasing integration into PMS platforms.
Data and analytics platforms provide market intelligence to investors, property managers, and destinations. AirDNA is the clear market leader, with Transparent (now part of Lighthouse) and AllTheRooms serving complementary segments.
Market Size and Growth
The broader vacation rental market continues to expand, with global short-term rental bookings projected to exceed $120 billion annually by 2026. The software layer captures a growing share of this value, driven by increasing professionalisation of property management and the shift from individual hosts to institutional operators.
The sector includes approximately 203 companies tracked by Tracxn, of which 40 have raised a combined $166 million in disclosed funding. Eight acquisitions and one IPO have been recorded among tracked companies, though many transactions in this space occur without public disclosure of terms.
M&A Activity and Deal Flow
Guesty's Consolidation Strategy
Guesty, backed by significant venture capital, has been the most acquisitive player in STR software. The company has completed five acquisitions since 2022, systematically building a comprehensive platform that spans property management, channel distribution, and analytics.
The most significant of these was the acquisition of Rentals United in May 2024, a Barcelona-based channel management platform. While financial terms were not disclosed, the deal was strategically important: it gave Guesty access to Rentals United's extensive distribution network and its base of property managers who require multi-platform listing capabilities. CEO Amiad Soto emphasised that the acquisition reflected "the need for improved product offerings through consolidation" in a fragmented market.
Rentals United continues to operate under its own brand and leadership team post-acquisition, a structure increasingly common in STR software M&A, where buyers recognise the value of maintaining distinct brand relationships with different customer segments.
AirDNA's Expansion into Software
AirDNA, the leading provider of short-term rental market data and analytics, made a strategic pivot with its acquisition of Uplisting in late 2023 (announced January 2024). Uplisting is a vacation rental software and channel management system founded in 2016, serving property managers who list across Airbnb, Vrbo, and Booking.com.
This acquisition represents a significant shift for AirDNA, moving the company from a pure data and analytics provider into operational software. The logic is compelling: by combining market intelligence with property management tools, AirDNA can offer a more complete solution and increase customer lifetime value. For founders of data businesses, this deal illustrates how acquirers view data assets as platforms that can be extended into adjacent software categories.
Hostaway's Growth and Funding
Hostaway raised $365 million in funding to support its expansion as a vacation rental management platform. The company has positioned itself as a comprehensive solution for professional property managers, competing directly with Guesty for the mid-market and enterprise segments. While Hostaway has been less acquisition-driven than Guesty, its substantial capital base positions it as a potential acquirer of smaller tools and technologies.
The Vacasa Reset and Casago Acquisition
The trajectory of Vacasa, once the largest vacation rental management company in the United States, serves as both a cautionary tale and an M&A catalyst. After going public via SPAC and reaching a peak valuation of over $4 billion, Vacasa's high-fixed-cost, centralised operating model proved unsustainable. Casago ultimately acquired Vacasa's operations, marking a pivotal moment for the industry.
Casago's acquisition strategy reflects a shift toward decentralised, "Hub and Spoke" operating models that combine local expertise with centralised technology and support. This model has implications for software companies: platforms that enable distributed management networks are increasingly valued over tools designed for centralised command-and-control approaches.
Lighthouse (formerly OTA Insight) and Data Consolidation
Lighthouse, the commercial intelligence platform for hospitality, raised $370 million in Series C funding and has been acquiring data and analytics businesses to build a comprehensive market intelligence offering spanning both hotels and STR. The company's acquisition of Transparent, a leading STR data provider, consolidated the travel data analytics market and created a more formidable competitor to AirDNA.
Notable Recent Transactions
| Deal | Buyer | Approximate Value | Date |
|---|---|---|---|
| Rentals United | Guesty | Undisclosed | May 2024 |
| Uplisting | AirDNA | Undisclosed | Late 2023/Jan 2024 |
| Vacasa | Casago | Undisclosed | 2024 |
| Transparent | Lighthouse | Undisclosed | 2023-24 |
| Hostaway funding round | Various investors | $365 million | 2024 |
| Guesty (5th acquisition since 2022) | Various targets | Undisclosed | 2022-2024 |
Valuation Benchmarks
Valuations in STR software reflect the sector's transition from growth-at-all-costs to sustainable, profitable operations. The collapse of high-burn models has made acquirers more disciplined, but quality assets continue to command strong premiums.
Revenue Multiples
Private STR software companies with strong recurring revenue and growth profiles typically trade at 4x to 8x ARR, consistent with broader vertical SaaS benchmarks. However, the range is wide:
- Early-stage or sub-scale businesses ($1 million to $5 million ARR) may achieve 3x to 5x revenue, particularly if growth has slowed or the business is reliant on a single product
- Growth-stage platforms ($5 million to $30 million ARR) with strong net revenue retention and a clear path to profitability can command 5x to 8x revenue
- Market leaders and platform businesses with diversified revenue streams (software subscriptions, payment processing, data licensing) may achieve 8x to 12x or higher, as demonstrated by Mews' valuation trajectory in the adjacent hotel software market
EBITDA Multiples
Profitable STR software businesses typically trade at 10x to 16x EBITDA, with premiums for businesses demonstrating:
- High gross margins (above 70%)
- Low customer churn (below 5% annually)
- Embedded payments or transaction-based revenue
- Defensible data assets
Data Business Valuations
Travel data and analytics businesses occupy a distinct valuation category. Companies like AirDNA and Transparent possess proprietary datasets that are expensive to replicate and serve as the foundation for decision-making across the STR ecosystem. Data businesses with:
- Proprietary, hard-to-replicate datasets
- Recurring subscription revenue
- Integration into customer workflows
- Expansion potential into adjacent software
can command premium valuations of 6x to 10x revenue, particularly when acquirers view the data asset as a platform for building additional products (as AirDNA demonstrated with the Uplisting acquisition).
Key Acquirer Profiles
Guesty
The most active consolidator in STR software, Guesty targets channel managers, booking engines, and operational tools that complement its core PMS platform. Guesty typically acquires businesses that serve a distinct customer segment or geographic market, maintaining brand independence post-acquisition. Founders considering Guesty should expect a focus on product integration potential and customer base overlap.
AirDNA
AirDNA's acquisition of Uplisting signals an appetite for software tools that extend its data platform into operational workflows. Founders of dynamic pricing tools, channel managers, or revenue management systems that could benefit from AirDNA's market data should consider the company a potential acquirer.
Lighthouse
With $370 million in funding, Lighthouse is building a comprehensive commercial intelligence platform spanning hotels and STR. The company acquires data and analytics businesses, and founders of travel data companies, benchmarking tools, and market research platforms are natural targets.
Private Equity Platforms
PE firms are increasingly active in STR software, attracted by recurring revenue models and the sector's growth trajectory. Inhabit, backed by private equity, has pursued a roll-up strategy in vacation rental technology. Other PE-backed platforms are expected to enter the space as the market matures.
Constellation Software / Jonas Software
Constellation Software's operating groups, including Jonas Software, have acquired hospitality and travel technology businesses. Constellation's permanent hold model and operational autonomy make it attractive to founders who want a stable, long-term owner for their business.
Consolidation Drivers
Market fragmentation: With over 200 companies competing in vacation rental software, the market is ripe for consolidation. Many smaller vendors serve niche segments or geographies, making them ideal add-on acquisition targets for platform builders.
Platform economics: Property managers increasingly prefer integrated platforms over assembling best-of-breed point solutions. Acquirers are building comprehensive suites that combine PMS, channel management, pricing, and analytics, creating strong incentives to acquire rather than build.
The professionalisation of STR management: As individual hosts give way to professional property managers operating portfolios of 50 to 500 units, technology requirements become more sophisticated. This shift drives demand for enterprise-grade software and creates larger, more valuable customer relationships for software vendors.
Data as a competitive moat: Proprietary data assets, whether market analytics (AirDNA), guest data, or operational benchmarks, are increasingly recognised as strategic advantages. Acquirers are willing to pay premium prices for businesses that possess unique, hard-to-replicate datasets.
Regulatory complexity: Growing regulation of short-term rentals across major markets creates demand for compliance tools and market intelligence, opening new niches for software companies and creating additional acquisition targets.
Cross-border expansion: STR software companies that serve multiple geographies offer acquirers immediate international reach. Property managers increasingly operate across borders, and software that handles multi-currency, multi-language, and multi-regulatory requirements is valued accordingly. Guesty's acquisition of Barcelona-based Rentals United exemplifies the value of cross-border capabilities.
Technology maturation: As the STR industry matures, the technology requirements of professional operators become more sophisticated, moving beyond basic listing management to encompass full enterprise resource planning, owner reporting, and revenue optimisation. This maturation creates demand for more advanced software and drives acquisition activity as platform builders seek to offer enterprise-grade capabilities.
What This Means for Founders
The consolidation window is open: The STR software market is actively consolidating, and well-positioned businesses are receiving inbound acquisition interest. Founders who wait too long risk facing a more concentrated competitive landscape with fewer potential acquirers.
Data is a premium asset: If your business generates or possesses proprietary data, whether market analytics, pricing intelligence, or operational benchmarks, this is a significant valuation driver. Ensure your data assets are well-documented, legally defensible, and clearly differentiated from freely available information.
Recurring revenue matters more than ever: The market has decisively moved away from valuing growth at all costs. Buyers want to see predictable, recurring subscription revenue with strong retention metrics. Transaction-based revenue from payments is also valued, provided it is embedded and sticky.
Consider your ideal buyer type carefully: A sale to Guesty means joining a fast-growing platform with aggressive integration plans. A sale to a PE-backed roll-up may offer more autonomy but also different economic structures (earnouts, equity rollovers). A sale to Constellation Software means a permanent hold with operational independence. Each path has distinct implications for founders, employees, and customers.
Prepare for integration questions: Acquirers will want to understand how your technology fits into their existing platform. Clean architecture, well-documented APIs, and demonstrated integration capabilities all support higher valuations and smoother negotiations.
Geographic diversification adds value: If your business serves multiple markets, this geographic breadth is a meaningful differentiator. STR software that handles the regulatory, currency, and operational complexities of multiple countries is more valuable to acquirers than single-market solutions, as it provides immediate international reach without the cost and risk of building local capabilities from scratch.
Emerging Niches and Adjacent Opportunities
Several emerging niches within the STR ecosystem present additional M&A opportunities:
Compliance and regulatory technology: As cities and regions impose increasingly complex short-term rental regulations, tools that automate licence management, tax collection, and reporting are becoming essential. Companies like Deckard Technologies and Harmari serve this growing niche.
Guest experience and messaging: Platforms that automate guest communications, provide digital guidebooks, and manage reviews are becoming standard tools for professional property managers. Operto (which also acquired Dack for smart home integration) exemplifies this category.
Insurance and risk management: Specialised insurance products and risk management tools for short-term rental operators represent a growing category that has attracted both investment and acquisition interest.
Sustainability and ESG: As travellers and regulators increasingly focus on environmental impact, tools that help property managers measure and reduce their carbon footprint are emerging as a new software category.
For founders in these adjacent niches, the consolidation of core STR platforms (PMS, channel management, pricing) creates natural acquisition pathways, as platform builders seek to offer comprehensive solutions covering every aspect of property management.
The Window of Opportunity
The short-term rental and travel data software market is in the midst of a significant consolidation cycle. The fragmented landscape of point solutions is giving way to integrated platforms, and acquirers, from venture-backed operators like Guesty to PE-backed consolidators and serial acquirers like Constellation Software, are actively seeking targets.
For founders, the current environment offers strong valuations and multiple buyer options, but navigating the landscape requires careful preparation. Understanding your business's unique value drivers, whether proprietary data, embedded payments, strong retention metrics, or a defensible market position, is essential for maximising your outcome.
The STR software market will look very different in three to five years. The founders who engage with the M&A process now, with the right advisory support and a clear understanding of their options, will be best positioned to capture the value they have created.