Leading Ontario Vacation Rental Management Company
| Cash Flow: | $324,000 |
| EBITDA: | $324,000 |
| Gross Revenue: | $3,400,000 |
Located in one of Canada's premier tourism destinations with over 180 properties under management, this vacation rental management company brings a legacy of success spanning multiple decades with a loyal base of property owners and repeat guests, making it an ideal foundation for new investors and industry buyers to build upon and capture the long-term growth of the short-term rental ("STR") industry.
Key Investment Highlights
1. STR market is poised for long-term growth - The short-term rental market is estimated to experience mid-single-digit growth over the next 5 years driven by shifting consumer preferences for STRs over hotels.
2. Attractive free cash flow profile - Minimal capital expenditures and working capital (all cash is collected from guests in advance of their stay). Small businesses pay a lower corporate tax rate further enhancing free cash flow conversion.
3. Located in a desirable tourism market - Prolific "drive-to" destination with a strong base of annual repeat guests making travel demand more resilient through economic cycles.
4. Highly experienced team - Company has a seasoned local team (average tenure of 10 years). The team will remain with the business post-closing ensuring a smooth transition.
5. Several growth opportunities actionable in the near-term - Examples include growing presence on online travel agents ("OTAs") which are not fully utilized today, rolling out dynamic pricing and outbound efforts to win new properties on the platform. Several competitors in the market will likely be actionable near-term acquisition opportunities.
