Hometime, a start-up based in Sydney, has secured $6.7 million in funding to support its innovative PM platform. The platform is designed to seamlessly integrate with Airbnb, enabling owners and property managers to effectively manage their short-term rentals (STR) with greater ease. The funding was raised in May of this year, with NAB Ventures and AS1 Growth Partners being major contributors. These investors were attracted to Hometime’s scalable business model, which is well-positioned to take advantage of the high-growth potential in this sector.
In addition to the funding, Hometime has also acquired two Australian-based property management companies, Host My Home and bnbpal. COO and co-founder William Crook has indicated that Hometime will be making further investments of this nature over the next 12 months. These acquisitions will further bolster Hometime’s position as a leading player in the STR management space.
According to Crook, Hometime has achieved a remarkable 300% increase in revenue during the 12-month period leading up to October 2019. With such impressive growth, Crook believes that the company is well-positioned to generate revenue between $13 million and $14 million this year, and has significant potential for further expansion in the years ahead, given the size and health of the international market.
Crook goes on to explain that the global short-term rental market has experienced substantial growth, with revenues expected to reach approximately US$115 billion in 2019, up from approximately US$40 billion in 2010, representing an annual growth rate of 13%. As Australia’s largest and fastest-growing operator in this market, Hometime intends to capitalize on this trend and drive further growth in the coming years as the market continues to mature and consolidate.
Hometime is not merely a software-as-a-service provider; rather, it is a start-up that offers property services. The company’s primary focus is to deliver the best possible guest experience. Hometime has invested a significant amount of time and resources in ensuring that the guest experience remains consistent across all eight cities in Australia and Auckland, New Zealand, where it operates. According to Hometime’s spokesperson, Mr. Crook, maintaining consistency and alignment across different locations is a daunting task that requires a considerable amount of investment. Hometime has spent a lot of time and resources on optimizing its business model by motivating and incentivizing its staff and providing them with the necessary tools to achieve the company’s goals.
The primary solution that has proven most effective is to concentrate on empowering and incentivizing the personnel responsible for servicing short-term rental (STR) properties, from those responsible for changing bed sheets and cleaning to gardening and other tasks.
By ensuring that these individuals are appropriately incentivized, equipped with the right tools, and properly trained to deliver quality services, the business becomes scalable. This approach has been a key driver of Hometime’s rapid growth and is representative of the current global investor interest.
Despite this, Crook, the founder of Hometime, believes that industry consolidation is imminent. As a young and fragmented sector, smaller players will begin to merge to remain competitive. Subsequently, larger players will acquire smaller ones to increase their market share and enter new markets.
According to the article, the speaker explains that Australia is a great market for Airbnb due to the increasing number of properties, but notes the lack of well-capitalized players in the market. This presents an opportunity for Hometime to acquire local businesses and gain a competitive advantage.
Looking ahead, the CEO of Hometime, Mr. Crock, has ambitious plans for the company. He aims to expand into the UK and US markets in 2020. He believes that the short-term rental industry is still in its infancy and has yet to fully embrace technology and scale. Consequently, there is plenty of room for a dominant player in the Australian market. The potential for growth is enormous, and the company is excited about the possibilities.
Hometime has become one of the noteworthy PropTech firms to monitor in 2020, thanks to their investments, capital infusion, and impressive expansion.
