York-based Growth Partner said it completed its £10.5 million investment into Host & Stay, the North Yorkshire holiday let and short term rental management business.
Growth Partner said the move supports the buy-and-build strategy of Host & Stay, which has been set in motion with two acquisitions completing in parallel with Growth Partner’s investment.
Growth Partner is backed by HomeServe Founder and Chairman Richard Harpin.
The York firm is taking a minority stake in Host & Stay, which has grown from nine properties to over 1,000 properties under management in the last five years.
Host & Stay was founded in 2018 by entrepreneur Dale Smith.
After completing a golf scholarship at the University of San Diego under coach Tim Mickelson, Smith returned to the UK and made a swift rise through the corporate ranks at automotive retailer Peter Vardy.
Smith identified a gap in the market for an end-to-end management service, so he left Peter Vardy to embark on his own venture, establishing H&S.
Alex Marsh, Partner at Growth Partner, led the deal and was supported by Jade Kelsall. Robert Phillips & Oliver Rickett of Womble Bond Dickinson provided legal advice, Luminii Consulting provided commercial due diligence, Interpath provided financial due diligence, Lockton provided insurance due diligence, and Claritas Tax provided tax structuring. H&S were advised by Nik Tunley of Endeavour on legal, James Dale of Anderson Barrowcliff provided CF management advisory and KPMG provided sell side CF advice.
Harpin said: “Host & Stay embodies the entrepreneurial spirit and commitment to excellence that drives true innovation in any industry.
“Dale Smith and his team have harnessed a unique market opportunity and are poised for tremendous growth. Our backing will support H&S in its journey to set new benchmarks in the holiday let and rental management space.”
Smith said: “After several years of growing Host & Stay organically from a single property to one of the largest short term rental management agencies in the UK, we’re truly excited to be partnering with Growth Partner for our next phase of the journey and to realise our ambition of becoming one of the world’s best short term rental operators.
“Alex and the wider Growth Partner team have been exceptional to work with throughout the investment process and they have approached the partnership in a collaborative and pragmatic way from day one.
“This approach has only further strengthened my confidence that we have chosen the right investment partner, and along with the vast experience and strategic influence of Richard, we’re now in a fantastic position to accelerate the growth of Host & Stay both in the UK and overseas.”
Marsh said: “We’re very excited to announce our latest investment in Host & Stay, a truly disruptive force in the holiday let and short-term rental management sector.
“Dale’s vision and execution have transformed H&S from startup into one of the market leader’s with over 1,000 properties under management in just five years. This rapid growth and innovative model have made H&S a standout in the booming £2.5 billion UK staycation market.
“Dale is building an outstanding team, and our support and investment will fuel H&S’s buy-and-build strategy as they build towards national coverage. H&S are on a mission to redefine industry standards, enhance guest experiences, and provide unmatched service and yields to property owners and we’re excited to supporting Dale and his team accelerate growth.”