VTrips has made a string of deals in recent weeks, acquiring Tennessee-based Resort Property Management as well as Florida-based Distinctive Beach Rentals and Resort Collection.
Terms of the acquisitions have not been disclosed.
With Resort Collection, one of the more well-established vacation rental management companies in Northwest Florida, VTrips adds more than 800 properties to its portfolio.
Ponte Vedra, Florida-based VTrips manages 3,000 vacation rental properties in resort destinations ranging from Florida to Hawaii.
According to VTrips founder and CEO Steve Milo, the acquisitions were made from VTrips’ operating profits and commercial bank debt.
“Profitability matters, and VTrips continues to be the number-one leader of national vacation rental companies for EBITDA, compounded EBITDA growth year-over-year and EBITDA margin to revenue.”
With the acquisitions, Milo believes VTrips is well-positioned to compete for the industry lead in the North American resort vacation rental market.
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“As a company headquartered in business-friendly Florida, with a founder and owner still in charge and who supports the industry in advocacy and volunteer work, VTrips is positioned to rapidly expand while other large companies deal with leadership and operational turmoil.”
As part of the deals, VTrips has offered jobs to all employees of Resort Collection, Distinctive Beach Rentals and Resort Property Management.
“VTrips believes that employees are the lifeblood of these companies, and we are doing everything possible to create a positive environment for them. As certain large national buyers operate more like ‘strip miners’ in our industry, we are encountering more and more sellers who want a buyer that will hire all their staff, take care of their brand and legacy and allow them to live in their community,” Milo says.
“We tell sellers that certain large national buyers are an option if they intend to move to another state or country and change their cell phone. Some sellers think this is funny. I always have a lot of good stories to share when I meet sellers in person. Most sellers dedicated their life to building a legacy and making great memories for their guests and employees and they want a buyer who shares their same values.”
In March, Milo told PhocusWire that – following the news of Vacasa acquiring TurnKey Vacation Rentals – he expected to see an acceleration of consolidation in the vacation rental space.
“I would anticipate a lot more capital coming into the property management space and rolling up what is still a hyper-fragmented market,” he said.
In addition to the Vacasa/TurnKey deal, recent moves in the sector include Cosi Group acquiring Awaze’s Friendly Rentals brand, as well as Awaze snapping up several vacation rental providers in the United Kingdom and Denmark.
On the software side, Operto last week announced its acquisition of VRScheduler.
Operto expects there to be further consolidation in the software sector supporting hospitality during 2021 and 2022.