Sykes Cottages Sold for $480 Million in a Bet on Tech-Led Short-Term Rentals
Photo Credit: An image of holiday cottages in Cornwall in the United Kingdom. Sykes Holiday Cottages, one of the largest home rental agencies in Europe, has sold itself for $480 million (£375 million) to private equity firm Vitruvian Partners. Sykes Holiday Cottages
Skift Take
The deal gives a nice return to private equity firm Livingbridge, which bought Sykes in 2015 for about $75 million. What makes Sykes Cottages stand out is that it has fully built almost all of its technology on its own and has almost 80 percent direct bookings. New majority stakeholder Vitruvian is now placing a bet on short-term rentals.
Sykes Holiday Cottages, one of the largest short-term home rental agencies in Europe, has changed hands in a deal worth about $480 million (£375 million).
Private equity firm Vitruvian Partners has taken a majority stake in the property management company, which has 17,500 vacation homes in the UK, Ireland, and New Zealand.
The price represented a significant multiple on the company's earnings. In the year through September 2019, Sykes generated sales of $87 million (£68 million), the company said. Its earnings before interest, tax, depreciation, and amortization, or a measure of profit, were $25 million (£20 million), it said.
Sykes, based in Cheshire, UK, didn't disclose the financial terms.
Vitruvian took over shares from previous private equity owners Livingbridge. In 2015, Livingbridge, a private equity firm, bought Sykes in 2015 for about $75 million (£54 million). Virtruvian has invested in travel before, having been a backer of Skyscanner, which sold on to the C
