Growth Partner backs Host & Stay founder

The rapidly growing holiday-let and short-term rental management business has a brilliant market-disrupting model. Growth Partner’s investment of £10.5m will support its buy-and-build strategy and growth.

Entrepreneur Dale Smith founded Host & Stay (H&S) in 2018. He has pioneered a sophisticated, fully integrated model to unlock greater rental yields for property owners alongside a higher touch level of service.

The business has grown from just nine to over 1,000 properties under management in the last five years. It’s an exceptional pace of growth that outstrips all others in the market over the same period.

As the £2.5bn thriving staycation market in the UK grows, H&S is well positioned to serve property owners across the country — and to become the leading end-to-end holiday-let and short-term rental management agency in the UK.

Dale cut his teeth rising through the ranks at automotive retailer Peter Vardy. His ambition naturally turned him down an entrepreneurial path, which began with exploring personal property investment with his family. When searching for a holiday-let management service provider on the North Yorkshire coast, Dale struggled to find a business that could offer high-quality, end-to-end management service. So, at the age of 29, he left Peter Vardy to embark on his own venture.

Dale’s vision is to build a truly differentiated holiday-let and short-term rental management business. He’s laser-focused on delivering the highest quality service for both property owners and guests. His business model allows H&S to achieve higher occupancy rates and higher revenue per property than its competitors – and consequently gives best-in-class rental yields for property owners. A dedicated in-house team handles the full process from booking generation and marketing to housekeeping, maintenance, compliance, interior-design support and refurbishment works. That means H&S can offer its services to property owners at lower than market base commission rates.

Dale and his team have set up the business to accelerate recent growth with a combination of strategic M&A and organic customer acquisition via brand awareness and national reach. Now, with the support of Growth Partner, H&S’s buy-and-build strategy has instant momentum, acquiring both Norfolk Holiday Properties and Airhost For You.

Alex Marsh, Partner at Growth Partner, led the deal with the support of Jade Kelsall. Robert Phillips & Oliver Rickett of Womble Bond Dickinson provided legal advice, Luminii Consulting provided commercial due diligence, Interpath provided financial due diligence, Lockton provided insurance due diligence, and Claritas Tax provided tax structuring. H&S were advised by Nik Tunley of Endeavour on legal, James Dale of Anderson Barrowcliff provided CF management advisory, and KPMG provided sell-side CF advice.

Richard Harpin says:

Host & Stay embodies the entrepreneurial spirit and commitment to excellence that drives true innovation in any industry. Dale Smith and his team have harnessed a unique market opportunity and are poised for tremendous growth. Our backing will support H&S in its journey to set new benchmarks in the holiday-let and rental-management space.

Dale Smith says:

After several years of growing Host & Stay organically from a single property to one of the largest short-term rental management agencies in the UK, we’re truly excited to be partnering with Growth Partner for our next phase of the journey and to realise our ambition of becoming one of the world’s best short-term rental operators.

Alex and the wider Growth Partner team have been exceptional to work with throughout the investment process and have approached the partnership in a collaborative and pragmatic way from Day One. This approach has only further strengthened my confidence that we have chosen the right investment partner. With the vast experience and strategic influence of Richard, we’re now in a fantastic position to accelerate the growth of Host & Stay both in the UK and overseas.

Alex Marsh says:

We’re very excited to announce our latest investment in Host & Stay, a truly disruptive force in the holiday-let and short-term rental management sector. Dale’s vision and execution have transformed H&S from start-up into one of the market leaders in just five years. This rapid growth and innovative model have made H&S a standout in the booming £2.5 billion UK staycation market.

Dale is building an outstanding team, and our support and investment will fuel H&S’s buy-and-build strategy as they move towards national coverage. H&S are on a mission to redefine industry standards, enhance guest experiences, and provide unmatched service and yields to property owners. We’re excited to be supporting Dale and his team accelerate growth.