Hostaway has raised $175 million to expand its property management software for short-term rentals.

The firm will use the new funding to accelerate its expansion and continue developing its services, expanding its offerings and improving its platform, Hostaway CEO and Co-Founder Marcus Rader said in a Wednesday (May 31) blog post.

“This significant investment is the most a company has ever raised in our industry, and is a testament to our company’s incredible growth, the profitability of our business and enormous potential of the space,” Rader said in the post.

Private equity firm PSG led the funding round.

Hostaway’s vacation rental software and management system automates and simplifies the property management process, PSG said in a Wednesday press release.

The system helps with property management, channel management, automation, analytics and reporting, communication and marketing, according to the release.

The platform is currently used by customers who manage a total of more than 100,000 properties in more than 100 countries, the release said.

“We are impressed with the quality of the Hostaway team, their vision and execution in building what is, in our view, a highly differentiated category leader with multiple levers of value creation,” PSG Managing Director Edward Hughes said in the release. “We believe the company has significant opportunity to lead this industry, as it continues to scale its integrated platform, expand globally and help its customers meet the growing demand in the short-term rental market.”

This announcement comes at a time when the short-term rental market is picking up.

For example, online marketplace for short- and long-term home rentals Airbnb reported on May 9 during its quarterly earnings call that the platform’s nights and experiences booked rose 19% in the first quarter compared to the same period last year, with high-density urban nights booked up 20% year over year and long-term stays coming in at 18% of total gross nights booked in the quarter.

In August 2022, short-term rental and hospitality platform Guesty raised $170 million in a Series E funding round to fuel the company’s growth and new product development as demand escalates across the industry and hospitality operators seek more support.