The European proptech, based in London, opened a delegation in Spain in 2015 through the Catalan capital and is already studying for its entry into Madrid.
The sum of a booming rental market and the ever-growing tourist mass that Barcelona receives annually has resulted in Hostmaker. This European proptech, based in London, has managed flats in Barcelona since 2015. Its task is to get "up to 30% average profitability" to tourist flats and occasional rentals, according to Beatriz Ribeiro, Head of Business Development at Hostmaker in Spain, to EjePrime. The company is already negotiating its entry into Madrid for the next few months.
The Hostmaker business in Barcelona is divided into "70% thanks to tourist apartments and the remaining 30% for rentals," explains Ribeiro. For the tourist housing area, the proptech has a pricing and algorithm strategy, charging 20% of the reservation price. A percentage slightly higher than the rent, for which they collect 15% of the final price with a minimum stay of one month, a model that is demanded, above all, "by master students or families who have just moved to Barcelona and they need a floor where to settle," specifies Ribeiro.
"It's an interesting product for newcomers to the city because the agencies ask for many guarantees and bonds; in our platform, the customer already has the price closed, prepay and reserve for as long as you want," says the person responsible for the development of the company's business in Spain.
However, the service offered by the British proptech is not limited to the delivery of keys. "In addition to the management, we are pending the maintenance of the houses", highlights the executive, whose company provides even the bedding if requested, as well as gives service to redesign the floor and change the furniture. In the last three years, the online platform has gone from managing twenty floors to more than 150 in Barcelona, and the goal for 2018 is "to reach 500 homes," says Ribeiro. Its turnover has also grown at this rate, which has forced the company to increase its workforce and move to new offices. "We are now 200 workers in Barcelona, so six months ago we had to change to a Poblenou building," says the board.
Hostmaker has managed to generate fifteen million euros for owners in five years Present also in London, Paris, Rome and, for a few months, in Lisbon, the Barcelona market is "one of the most profitable" for the proptech, only behind of the British capital. The large influx of tourists that receives the city and uses platforms such as Airbnb or Booking, in which Hostmaker announces the homes it manages, is now joined by the high rental profitability in the Catalan capital.
"All the bad publicity that there was in the last year with the tourist flats and the rise in the prices of rents in the city opened the door for us to start this new line of business," Ribeiro says. The current high average occupancy, over 80%, and the high prices of leased homes has made Barcelona one of the most interesting capitals for platforms of this type. "In addition, the city is very profitable throughout the year, barely has low season," says the responsible.
The public that demands the management of Hostmaker is divided, mainly, in two: "the majority are or people who have a second residence in the city and want to take advantage of it, or investing groups that have complete buildings for rent". The company is already studying its landing in Madrid The growth of the company in Barcelona goes hand in hand, according to Ribeiro, of the "attractiveness of living here". A point that is present even in his company, where he believes it is "easier to attract talent to Barcelona than to other cities such as Paris and London".
In the Hostmaker roadmap for 2018, besides consolidating in Barcelona, there is the possibility of disembarking in Madrid. "It was always an interesting market for us, because there is also potential and a significant corporate market," says Ribeiro, who acknowledges that the Spanish capital is "on the radar" of the proptech.
In these five years, the company has managed to generate fifteen million euros for the owners of its portfolio of assets in management, which has as a hard core London, with 400 homes on the market. A few months ago, in addition, the company closed a round of financing of fifteen million euros that was led by the Thai property developer group Sansiri, which has offered Hostmaker the possibility of crossing the European continent and exporting its business to Bangkok.
The above article was written and published in Spanish and has been translated into English. Click here to read the original article.
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