Vacasa Paid $619 Million For Turnkey Vacation Rentals In Mostly Stock
In one of the top handful of online travel and short-term rental deals of the year, Vacasa paid $618.8 million to acquire rival property management company TurnKey Vacation Rentals, with the vast majority of it transacted in Vacasa common stock.
The purchase price, which had been disclosed in financial filings in mid-November, hasnt been reported in the press until now.
In the deal, which closed in April, Vacasa paid TurnKey just $45 million in cash, and issued $573.8 million in Vacasa common stock to consummate the transaction. When the merger closed, Portland, Oregon-based Vacasa said the combined entity would manage 30,000 vacation rentals in North America, Belize, and Costa Rica. Austin-based TurnKey contributed some 6,000 properties to the mix.
Vacasa has a pending public company debut in a SPAC, or special purpose acquisition company, merger. Since its founding Vacasa had received $634.5 million in funding while TurnKey attracted some $120 million, according to Crunchbase. That means TurnKey seems to have done well for its investors, including Altos Ventures and Adams Street Partners.
In valuing TurnKeys intangible assets, Vacasa estimated that the fair market value of TurnKeys homeowner contracts were $102.3 million, database and listings were $3.4 million, and trademark and brand name were worth $1.9 million for a total of $107.6 million.
Correction: The initial version of this story misreported TurnKeys total funding, which was around $120 million.
What Does Turnkey Mean When Renting
A turnkey property is a move-in ready home that doesnt require any major repairs or improvements before it is livable. These homes are designed for renters who want truly move-in-ready homes. Occasionally, real estate listings will use the term turnkey to entice buyers, even when the place isnt properly refurbished.
Factors To Consider When Buying A Vacation Rental
Youre leaning toward taking the plunge and buying a vacation rental home. Youve already envisioned how you want the interior to look, and youve even done some rough math to estimate much income the property could pull in.
Dont get too far ahead of yourself, though. Theres much more you need to consider before putting down your hard-earned money toward the purchase of a vacation rental home.
Purchasing that home at the beach or the reclusive cabin in the mountains takes a bit more than just wanting it and jumping in, says property management specialist Denise Deni Supplee, operations director at Spark Rental and co-founder of Snap Landlord.
Give thought to the following eight factors when youre looking at buying a vacation rental home.
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Vacasa Acquires Turnkey Vacation Rentals: The Investor Takeaway
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Vacasa, one of the leading vacation rental platforms, is acquiring one of its competitors, Turnkey Vacation Rentals. The acquisition will bring Vacasas total portfolio to roughly 30,000 properties.
If you believe travel demand is going to ramp back up coming out of the pandemic, it may be worth a look at turning your investment property into a vacation rental, as hotel supply wont be back to what it was pre-pandemic.
What Are The Advantages Of Turnkey Project
Benefits of Turnkey Manufacturing One Company to Contact. Nothing kills the timeline of your project like having to communicate with multiple companies and trying to get multiple companies to communicate with each other. One Company Sending Invoices. Design and Manufacturing in Sync. Costs are Cut. Greater Quality.
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Who Bought Turnkey Vacation Rentals
& AUSTIN, Texas Vacasa, a leading vacation rental management platform in North America, announced today it has signed an agreement to acquire TurnKey Vacation Rentals, a vacation rental manager for premium homes in more than 80 destinations across the U.S. The transaction brings together two prominent
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The Millionacres Bottom Line
As its been widely reported, many hotels will not be coming back, and those that are may not ever return to pre-pandemic levels. A combination of an economic model that could not withstand the pandemic along with an accelerated shift in consumer demand toward vacation rental properties like Airbnb and Vacasa are the main culprits for this shift.
With people expected to travel more coming out of the pandemic, this could be an interesting time to explore either turning your investment property into a short-term rental or investing in a vacation rental property. If youre concerned about the additional work but still want exposure to a vacation rental asset, a platform and property management tool like Vacasa might make sense.
Proximity To Your Home
Are you planning to take advantage of the vacation rental home when renters arent there? If so, you might want select an area thats not too far from your permanent residence. Otherwise, itll be a struggle to get away to your getaway.
The distance of the vacation rental property from the primary residence is going to be a strict determinant on how many times a year it will be visited and used, says Vicki Patterson, chair of the Texas Board of Realtors.
In addition, how much time are you thinking of putting into upkeep and maintenance of the property? If youre intent on going the DIY route, youll want to be within a reasonable driving distance to take care of things like an overgrown yard or a broken toilet.
Marc Carver, principal at the Carver Property Group, a high-end real estate agency in the Atlanta area, warns that in many cases, DIY upkeep and maintenance can gobble up much of the time youve carved out for relaxing at the vacation rental home, which is surely not what you expected when you dreamed of vacation home ownership.
When pondering the upkeep and maintenance of a vacation rental home, keep in mind the size of the property, Patterson says. A bigger home will demand more TLC .
What if you want to wash your hands of the upkeep and maintenance hassles? Then be sure to hire a trusted property manager to assume the burden.
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We Rented All Four Units And Due To
We rented all four units and due to life only ended up using three. Two of the three were great. The third had a serious ant problem but the owners were dealing with it. This same unit also had no internet or TV that worked. This was not a huge deal as we did not spend much time there but could be an inconvenience for some. The location was great and a short Uber ride from Broadway and The Gulch. The neighborhood was safe and we were comfortable for our entire stay. The best feature was the mattresses!!! I struggle not sleeping in my own bed when away from home but the mattresses were great and I had no issues here. Seriously, the best mattresses I have ever slept on while on vacation.
What Is Turnkey Rental
A turnkey property is a move-in ready home that doesnt require any major repairs or improvements before it is livable. These homes are designed for renters who want truly move-in-ready homes. Occasionally, real estate listings will use the term turnkey to entice buyers, even when the place isnt properly refurbished.
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My Family Enjoyed A Wonderful Vacation In Your Beautiful And Peaceful Property
My family and I had a wonderful and comfortable vacation in your beautiful and peaceful property! We were very sad that it is no longer available for an extension, but we are looking forward to booking this property again next time, and I truly hope that you will accept us again.Secondly, I must say that we loved the kitchen and everything that came with it! It was a first-class kitchen with everything that we needed and more.Thirdly, I commend the TurnKey team for being very prompt, efficient and professional throughout our entire stay.My family and I felt so at home from the moment we checked in, and loved every minute of our stay!
This Company Is A Joke
This company is a joke, rented a home in Aspen, a elderly lady lives in the house you pay to rent, this clown company claimed the were going to place is in another rental. Lied about that and disappeared. Not to mention we paid thousands and had to shovel to keep from falling.
Reply from TurnKey Vacation Rentals
Hi Hailey,Thank you for taking the time to share these details. We sincerely apologize if you had a less-than-perfect experience, which does not appear to meet our high standards of service. Please know your feedback is highly valued to help us improve experiences for future guests. We are not able to identify your reservation with this information but would like to look into your situation further to learn more. If there is anything we can still do for you, please reach out to us through our 24/7 guest hotline and let us know.
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Why Turnkey Projects Are Attractive
Why are turnkey projects attractive? The advantage of a turnkey operation is that it allows firms to earn a return from the know -how involved in assembling and running technologically complex processes. They make sense in countries where political or economic conditions make it risky to make longer term investments.
Hotel Soft Brand Metaphor
Clark believes that, over time, consumers will look to soft brands as a way to tell what kind of amenity and quality guarantees they can expect as they choose among properties. He foresees the emergence of an array of soft brands, similar to what has happened in the hotel industry.
He said TurnKey would be one of those brands delivering a consistent standard of quality and customer service, with guest-ready properties as advertised.
He anticipates the rise of micro-hoteliers, or homeowners who choose different flags, or brand promises, to fly just like hotel owners choose among franchises to affiliate with today.
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Austins Turnkey Vacation Rentals Is Bought By Vacasa
Austin-based TurnKey Vacation Rentalsis being bought by Portland, Oregon-based Vacasa, a competing vacation rental management platform.
The financial terms of the acquisition were not disclosed. Turnkey, founded in 2012, had raised $120 million in venture capital. Vacasa has raised $639.5 million to date, including a $108 million Series D round last June, according to Reuters.
TurnKeyprovides vacation rental management for approximately 6,000 premium homes inmore than 80 destinations nationwide.
Vacasaplans to keep TurnKeys Austin office and its employees, according to a news
Thedeal is expected to close in a month.
Thisis an incredibly exciting day as we plan to welcome TurnKey employees,homeowners and guests into the Vacasa family upon closing of the transaction.Our companies have a similar focus on delivering exceptional service to ourhomeowners and guests, and we are excited to do that together at a key juncturefor the highly competitive vacation rental industry, Vacasa CEO Matt Roberts saidin a news release. The vacation rental sector continues to seesignificant gains in market share for accommodations and, with our expert teamsand innovative technology, well have the opportunity to lead the industryforward.
Vacasaand TurnKey offer full-service vacation rental management to homeowners byproviding customer support as well as cleaning and maintaining theirproperties.
Does Turnkey Mean Furnished
Turnkey property does not typically mean furnished, but some turnkey properties might be furnished. It typically says in the property description whether it is furnished or not. If you are touring a turnkey property and fall in love with the furnishings and the property, however, talk to your real estate agent.
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Is Vacasa Publicly Traded
On June 2, 2020, Vacasa announced it had raised $108 million in Series D funding led by existing investor Silver Lake. In July 2021, Vacasa announced that it would become a publicly-traded company through a merger with TPG Pace Solutions, a special purpose acquisition company sponsored by TPG Pace Group.
Amazing Cottage Away From Busy Tourism Spots
The cottage is located on the hills above Kihei. It is far enough away from the tourists and close enough that the store is just a 5-10 minute drive. It is fully equipped with everything you need to cook a nice home made meal and watch the sunset as well. It is not a clear sunset view but it was still gorgeous. I enjoyed the quietness, cleanliness, and spaciousness of the cottage. I enjoyed working on my laptop on the patio and enjoying movies on the big screen TV in the living room and the bedroom. High quality rental where I got to refresh and enjoy family time. Looking forward to staying here again.
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How To Avoid Vacation Rental Scams
There are many benefits to booking a private home for your next vacation. Most short-term vacation rentals offer more space than traditional hotels, giving you a bigger bang for your travel buck. Access to a kitchen and common areas can be a huge perk for people traveling in groups and those planning to stay more than a few days in a location. And in general, vacation rentals offer a homier experience compared to large hotel chains, as well as the chance to feel more like a local in a destination.
But booking a short-term rental can expose you to more risk than booking with an established hotel chain. As of early April, the Better Business Bureau had already received more than 90 travel fraud reports in 2019.
Fortunately, there are steps you can take to ensure a listing is legitimate. Here are 8 tips to help you get exactly what youre looking for when booking a vacation rental.
1. Pay attention to photos. Legitimate listings will include multiple photos of the homes interior. Be wary of listings that only show photos of the region,surrounding areas, or only have one or two interior shots. A good host will also be glad to accommodate any requests to see additional photos of the house, a specific room, etc. If youre still unsure, do a . If you see the same photo on unrelated listings or stock image sites, run.
Built For The Long Haul
TurnKeys latest funding round, the doubling of its revenue in 2017, and its positive cash flow ought to let it hum along for a couple of years.
Some industry critics said that the startup has the hallmarks of being a short-term play. They point to the presence of many former HomeAway executives at the company. They suggest the management is building the company to flip in a couple of years to a larger player, such as an online travel company like Expedia.
Thats not an indictment. Many startups would love to do the same.
Its true that TurnKeys Chief Financial Officer Jen Ford used to be a key mergers and acquisitions negotiator for HomeAway and that co-founder and Executive Chairman John Banczak used to be a vice president at HomeAway. About nine other employees had past stints at HomeAway, according to .
On the other hand, both tech companies are based in Austin. There are only so many places to work, and TurnKey has been in operation for four years.
Whats more, it isnt obvious that HomeAway wants to start buying property management companies.
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What Does Turnkey Business Mean
A turnkey business is a for-profit operation that is ready to use as-is the moment it is purchased by a new owner or proprietor. The term turnkey is based on the concept of only needing to turn the key to unlock the doors to begin operations, or to put the key in the ignition to drive the vehicle.
How Much Did Vacasa Pay Turnkey
In the deal, which closed in April, Vacasa paid TurnKey just $45 million in cash, and issued $573.8 million in Vacasa common stock to consummate the transaction. When the merger closed, Portland, Oregon-based Vacasa said the combined entity would manage 30,000 vacation rentals in North America, Belize, and Costa Rica.
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Who Is Involved In A Turnkey Project
A turnkey construction project can be both a project that needs construction from ground up or a home remodelling for an existing home. All the basic aspects of the house are decided before your residential builder begins the work, and the builder will add all the specified criteria and set a price.
Leading Vacation Rental Brands Unite To Drive Greater Innovation Service And Hospitality In The Vacation Rental Industry
PORTLAND, Ore.Vacasa, the leading vacation rental management platform in North America, announced it has closed the transaction under which it agreed to acquire TurnKey Vacation Rentals, a technology-enabled vacation rental property manager for premium homes in more than 80 destinations across the U.S.
This is a significant milestone for both companies, as well utilize our collective strengths to do something that has never been donecreate a premium standard for vacation rentals, said Matt Roberts, CEO of Vacasa. Well do this by leveraging decades of industry expertise and our technology built to optimize the vacation rental experience, bringing more innovative solutions to our owners and guests.
Vacasa signed a definitive agreement to purchase TurnKey in early March. When fully integrated, Vacasa will manage approximately 30,000 vacation homes throughout North America, Belize and Costa Rica. Vacasas field team consists of nearly 5,000 employees, who will join forces with TurnKeys local teams to provide an increased level of home care for homeowners and hospitality for guests.
According to a recent Skift survey of vacation rental users commissioned by Vacasa, 52% of respondents said they plan to stay in a vacation rental more often in a post-pandemic environment.
About Vacasa
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