Vacation rental management firm Vacasa has successfully raised $30 million, with an additional $45 million available, through senior secured convertible notes provided by an affiliate of Davidson Kempner Capital Management. This financing is set to enhance Vacasa’s financial stability.
In May, Vacasa had announced a major restructuring effort, resulting in a 13% reduction in its workforce due to ongoing industry challenges. The company’s second-quarter 2024 earnings report revealed that it has made considerable progress in reorganizing and decentralizing its operations into more localized regions.
According to the shareholder letter, the company will focus on empowering local teams with increased decision-making authority across key areas such as sales, onboarding, revenue management, and marketing. This strategic shift is intended to improve efficiency and better align with the company’s localized approach to property management.
As part of the new financing deal, Davidson Kempner will appoint two new directors to Vacasa’s board, with the potential for two additional appointments under certain conditions.
The shareholder letter concluded by noting the difficulty in providing 2024 guidance due to ongoing industry dynamics and their effect on booking variability and average gross booking value per home.
In the last few months, the vacation rental firm is grappling with decreased demand for domestic, non-urban vacation rentals and an increase in short-term rental supply. The company reported a 19% year-over-year decline in gross booking value for the quarter, totaling $505 million, driven by a 17% drop in nights sold and a slight decrease in booking value per night.
