EDITOR'S COMMENT
• When Henrik Kjellberg speaks, the industry listens. The Awaze CEO joined me for a video interview at Vitur Summit in Malaga, just a week after it was reported that his company had been put up for sale for £2 billion by private equity firm Platinum Equity, and it's fair to say he was effusive in his optimism for the future of holiday rentals.
With more than 100,000 properties in 16 countries, Awaze claims to have the largest inventory of professionally managed properties in Europe. Kjellberg said that there had been "lots" of demand for high-end products into next summer but that the lower-end product had struggled more, partly at least due to the cost of living crisis.
Despite those concerns, Awaze's CEO says the staycation trend is "here to stay", given the category offers "incredible" value to consumers who do not want to compromise on their holidays but are more eco conscious than ever before and are more likely to stay locally.
With an estimated 19 million holiday homes in Europe, Kjellberg also believes there is a lot of room to grow on the supply side and continue Awaze's rapid growth strategy. Over the last 12 months, the company has completed 13 acquisitions in the UK and continental Europe, including Quality Cottages and sister brand Quality Unearthed, Amberley House, Portscatho Holidays and Danish business Bornholmtours, and Kjellberg expects to surpass this in Q4, with a "long list of active conversations currently ongoing" to complete more M&A.
On the rumours of the group's potential sale, Kjellberg was understandably coy, albeit admitting to being "very excited" about what will happen in the next five to ten years for Awaze. His confidence is justified by the rising investor appetite for the holiday rental industry and its rebound since the lockdowns during the Covid-19 pandemic, so we can surely expect some exciting announcements before the end of the year,
• Our 'RockSTRz' webinars return next Tuesday 18 October at 4pm BST with a session on "The price is REIT: Investment trends in the STR sector", in which I'll be joined by an expert panel to discuss everything from the different types of financing available to the acceleration of private equity and institutional investment entering the sector. Stay tuned for speaker announcements throughout the week and sign up for the no-cost session at this link.
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