Growth Partner has completed a £10.5 million investment into Host & Stay, the holiday let and short term rental management business, to support its buy-and-build strategy which has been set in motion with two acquisitions completing in parallel with Growth Partner’s investment.
The consumer-specialist investment firm, Growth Partner, which is backed by HomeServe Founder and Chairman Richard Harpin, has completed an investment of over £10 million into Host & Stay Group (H&S).
Taking a minority stake, the holiday let and short term rental management business has grown from nine properties to over 1,000 properties under management in the last five years.
H&S was founded in 2018 by entrepreneur Dale Smith and utilises a sophisticated, fully integrated model which unlocks greater rental yields for its property owners alongside a higher touch level of service.
This differentiated model has helped the business capitalise on the £2.5bn thriving staycation market in the UK, enabling exceptional year on year growth. With Growth Partner’s investment, H&S will be able to continue its rapid growth to become the leading end-to-end holiday let and short term rental management agency in the UK.
With the support of Growth Partner, H&S’s buy-and-build strategy has gained instant momentum with the acquisition of Norfolk Holiday Properties and Airhost For You.
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.
Richard 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.”
Dale 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.”
Alex 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.”
