Pavilion has launched as a national vacation rental company with 20 local rental operators managing 5,000 homes across the U.S.
The company said the local businesses will retain their existing leadership and brands while gaining access to shared technology, data and operational resources. Local executives will hold equity in Pavilion, with those shareholders and Pavilion’s managing team retaining majority ownership.
“The people who built these businesses are the core of Pavilion, and they should get the biggest share of the outcome,” said Pavilion co-founder and chairman Joe Fraiman. “The typical industry playbook left founders with a small piece of someone else’s company. We’ve been founders in this industry ourselves, so we built the company we would have wanted to join.”
The company was founded by Stakeholders, a firm that builds larger businesses by combining independent companies within the same industry. Its approach aims to leverage economies of scale via shared resources and infrastructure.
“Pavilion gave me a way to keep building my business while owning a piece of something much bigger,” said Steven Chrobak, founder of Myrtle Beach Destinations. “We have the tools and support we need to grow, and the only thing my homeowners have noticed is that we’ve gotten better.”
Pavilion is backed by TZP Group, investment funds managed by BlackRock’s HPS Investment Partners and Capital Dynamics. PGIM is the platform’s primary lender.
The company plans to continue adding vacation rental businesses across the U.S.
“We’re looking for builders,” said Brady Stump, co-founder of Pavilion. “People who have built something exceptional in their market and want the resources to make it substantially bigger.”