Stayntouch, which makes a mobile-focused, cloud-based property management system for hotel operators, has secured $48 million in strategic growth equity investment from Sixth Street Growth, an early backer of Airbnb and the growth investment unit of the investment firm Sixth Street.
So far, the Bethesda, Md.-based startup has raised $60.2 million from investors including Singapore’s Shiji Group, Triangle Peak Partners, SAP Concur and Forum Ventures (New York).
Cloud Platform Is Key
Subsequent to the deal, Sixth Street Growth’s principal Michael Bauer will join the Stayntouch board. Sixth Street is a global firm with offices in New York and Boston.
Since 2020, Stayntouch is owned by Dallas, Texas-based MCR, the third-largest hotel owner-operator in the United States with a portfolio worth over $5 billion. It is led by CEO Jacob Messina, a former MCR executive.
“Stayntouch’s innovative cloud-based PMS is the future of hotel technology, and we are confident they are best positioned to capitalize on the growth opportunity going forward,” said Ben Johnston, managing director of Sixth Street Growth.
‘Perfect Growth Partner’
“Stayntouch’s robust yet intuitive platform empowers hotels to streamline operations and resolve some of today’s greatest obstacles in the hospitality industry,” he added.
MCR CEO and Stayntouch Chairman Tyler Morse termed Sixth Street a “perfect” partner for growth, hailing the firm’s “flexible capital solutions and deep operational experience.” The investment’s collaborative team brings operational and management expertise along with an in-depth understanding of Stayntouch as a business, he said.
“We believe Sixth Street will help accelerate the company’s growth plans while strengthening its technology offerings to better serve clients and hotels globally,” said Morse, a former Morgan Stanley executive.
Stayntouch’s customers include Sage Hospitality, HEI Hotels & Resorts, EOS Hospitality, Stoney Creek Hotels, TWA Hotel and Zoku Amsterdam. It plans to use the newly raised capital to further develop its software and payments offerings, and to expand in the United States and Europe, particularly Germany, the United Kingdom, and France.
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Thus far, Stayntouch has focused on selling its software to independent hotels. But going forwards, it plans to win over hotels running legacy systems, such as those developed by Oracle Hospitality, according to the travel industry news website Skift.
Stayntouch has spent over $200 million in developing its mobile-centric hotel property management system. The platform, the company says, helps hotels to drive revenue, reduce costs and enhance service standards.
Sixth Street Growth is the growth investing unit of Sixth Street, which has over $74 billion in assets under management and committed capital. It has invested over $9 billion in more than 70 companies, including Airbnb, AvidXchange, Bloomreach, Contentsquare and Spotify.
