Hostaway’s $1B Valuation Proves AI Leads Short-Term Rentals

Hostaway, a property management software (PMS) provider for short-term rentals (STRs), has reached a $1 billion valuation, becoming the first unicorn in the STR PMS sector.

The milestone marks a leap from its $365 million funding round in 2024, when the company was valued at $925 million.

Hostaway’s platform integrates channel management, reservations, guest communication, payment processing, and performance analytics.

Over the past year, Hostaway has expanded its suite of AI-driven tools to include messaging assistants, dynamic pricing, insights from sentiment analysis, and workflow automation such as task management and maintenance alerts.

Looking ahead, Hostaway says it will continue investing in AI innovation, with the goal of further simplifying operations for hosts and property managers.

Founded in 2015 by Marcus Rader, Saber Kordestanchi, and Mikko Nurminen, Hostaway was built to close the technology gap in the growing STR market. Over the past decade, the company has grown into a global platform used by property managers in over 90 countries.

For a deeper dive into how artificial intelligence is transforming the sector, check out our article on AI in short-term rentals.

Photo by Marlene Prusik on Unsplash