Vacation Rental Management Valuation Multiples & Benchmarks?

investor profile

April 30, 2022

by an investor from Indiana University at Bloomington in Austin, TX, USA

Hi Fellow Search Funders,

I have an opportunity to acquire a stake in rapidly growing vacation rental management business with $8M top-line and $3.4M EBITDA.

For those familiar with the space, I'm looking for insight on the following:

1. What are typical multiples in this space - I assume higher than property management? My research indicates 4-7x is typical for the smaller cos, but what about the larger ones with massive net margins and growth.

2. If we grow to $8-10M EBITDA over the next 3 years via acquisitions, What might the multiple look like then (10-12x within reason)?

3. What are some good benchmarks for gross and net margins, along with expenses line items as a % of revenue? Who has the best data / reports on this?

Thanks in advance!

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commentor profile
Reply by an investor
in Toronto, ON, Canada
rental management space is great. ive been managing a portfolio of rental houses through hostaway. take a look at their services. its been a really great tool for me. it allows you to integrate onto several platform like airnbn, vrbo, booking, expedia etc,.
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Reply by a searcher
from London School of Economics and Political Science, University of London in Miami, Florida, EE. UU.
Hi Jeff, I'm also interested in your deal. I recently partnered to buy a vacation rental business which I am currently leading, and would be interested in learning more about your experience and sharing my own.
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