Accommodation platform AvantStay will use a $500 million investment round to create a PropCo to handle real estate and asset ownership.
Backing for the move comes via Saluda Grade, which led the round and is a specialist in real estate asset management company.
AvantStay raised a Series B round of $160 million just two months ago from Tarsadia Investments and 3L Capital, with participation from Saluda Grade.
Sean Breuner, founder and CEO of AvantStay, says: "With this new capital and partnership with Saluda Grade, we will pioneer and institutionalize a new asset class that will inevitably pave the path for travelers to have a better experience and for investors to generate attractive returns."
The company believes that creating the PropCo will also allow it to "set a new precedent for best practices with local communities and their governing bodies."
"Investors, operators and regulators across the industry have recognized that premier brands and professional operators ensure the successful partnership of short-term rentals and local communities for the long term," the company claims.
AvantStay's total funding now stands at around $185 million (another seed round came in 2018, worth $5 million), alongside the PropCo vehicle.
The company says it has over 1,000 properties in more than 100 cities in the U.S. and Mexico, with ambitions to use the 2021 funding round to expand the business into new markets.