Latest / Host Planet: Airbnb, Holiday Let, and Vacation Rental Insights / How to Sell a Property Management Business

Transcript

How to Sell a Property Management Business · Host Planet: Airbnb, Holiday Let, and Vacation Rental Insights

• 0:00
  It's really positive for the bond in the business.
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  Beach retreats will derive from this.
• 0:04
  It was nice thing to do for me personally.
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  I'll have a holiday and then see what happens after that.
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  What is it like to sell a property management business?
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  How stressful is the due diligence process and what do
• 0:16
  you need to get right in order to appeal to potential buyers?
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  And the Eastern from Beach Retreats will be answering all
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  these questions on today's show and looking forward to the first
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  leg of the House Planet Roadshow, which will kick off in
• 0:29
  Cornwall on the 5th of February. Andy, thank you for joining us
• 0:37
  on the Host Planet podcast. Let's start with the big news
• 0:41
  from Beach Retreats. What was it like to sell your
• 0:44
  business? Well, I guess this has been
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  going on for a year now since the original kind of approach
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  and the journey that we went on. It's been kind of very much a
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  series of highs and lows with the initial opportunities for
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  the due diligence, due diligence and then to actually the day it
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  happened and then the follow up with the team and the owners.
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  And here we are over 4 1/2 months into the acquisition,
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  business as usual and business is actually really good for next
• 1:13
  year. So we're kind of being left to
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  our own devices to a certain degree and there'll be obviously
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  big plans for 2026. Fantastic.
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  So let's kind of outline this for the listeners then and the
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  people watching Travel chapter, which is one of the biggest
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  property management brands in the UK.
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  They have acquired beach retreats.
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  So just kind of take us a few step backs then.
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  Did you decide you want to sell your business?
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  Did they approach you? How did it happen?
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  Well, it was very much we were looking at the future of beach
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  retreats. We reached a really healthy
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  size. We're winning awards, doing
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  really well for our owners. We're mostly owned by Watergate
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  Bay Hotel and they're kind of they're going in a different
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  direction with a part hotels and hotel brands that they wanted to
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  develop. So for them it made sense
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  commercially to, to kind of sell beach retreats and for me
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  personally, it was with the right time to do it as well.
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  But this I the message is very much that this will give beach
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  treats for the the wings to kind of fly outside of Cornwall and
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  to to really grow into with exciting brands where the full
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  potential can be realized. OK, real talk now for all you
• 2:31
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• 2:34
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• 2:38
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• 3:46
  sorted with hopefully it's a kind of what happened.
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  What are the what are the nuts and bolts?
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  Do you get a call from somebody at travel chapter saying hi,
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  Andy, we like what you're doing down there.
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  We we see you've got 240 properties and you're at 97%
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  direct bookings. How much do you want?
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  Is it is it that kind of a goal? We, we reached out to if, if you
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  keep people in the sector, it's fair, fair.
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  And the response was really positive.
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  So we had a quite quick conversations around some top
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  level heads of terms and from that there was a really kind of
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  natural path with travel chapter.
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  I think we, we, we, we felt quite excited about their vision
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  and their values and that of lead into a far more detail due
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  diligence process over the next four or five months and.
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  What happens during a due diligence process?
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  I mean, it sounds just just the sound of that phrase.
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  It sounds quite stressful. Well, not stressful, just very
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  detailed. So and I guess having all of
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  your ducks in a row before entering into a due diligence
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  period is really important. I think we, we, we, we're
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  looking back at it now, having all your contracts in place, all
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  your accounts up to date, all your kind of like best practice.
• 5:03
  Our standard operating procedures are all really
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  detailed and it, we were kind of operating a really tightly 1
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  ship and that really helps. So when we're kind of sharing
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  documents with a, with a buyer, it meant that, you know, we had
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  confidence and we had the ability to tell the story very
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  accurately and very transparently.
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  That was really important as well.
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  There was no, no kind of sales picture such.
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  It is what it is. And I think if you can do that,
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  then that overcomes a lot of the hurdles during that due
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  diligence process. Your short term rental business
• 5:38
  is evolving fast, but how do you keep up with the latest
• 5:42
  regulation, tax changes and industry trends?
• 5:45
  The answer is to attend the House Planet Roadshow, which is
• 5:49
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• 5:52
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• 5:56
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• 6:00
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• 6:11
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• 6:45
  in your market. Tickets are just £40 each and
• 6:48
  available now from our website. Head to House Planner dot Club
• 6:53
  for further details. If there are property management
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  companies out there, maybe they've got 50 a hundred, 200
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  hard like you or even more and they think well I actually want
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  to sell my business. What would your best advice be
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  to them? I think yeah, having all your
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  accounts up to date showing a healthy profit and where the
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  kind of opportunities to go are, there's a lot of value in that
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  where a large company like Travel Chapter can come in and
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  and add value to the business. So we were just kind of like
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  running, you know, running a really good type holiday letting
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  agency with the right technology, the right HR in
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  place, all the accountancy elements in place and making
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  sure that we had a really strong brand with a well defined
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  market. So we were very clear about what
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  we do and how we do it. Yeah, we've spoken in the past
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  about the importance of having a strong brand and strong
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  marketing. How much has that helped you
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  appeal to potential buyers? I think, I think a lot, I think
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  it's fair to say and that the profile that we created for beef
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  treats in the Southwest of England and you know, the
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  contacts that we've made going to different events both locally
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  and nationally really helped. So people knew who we were and
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  what we stood for. So that that that notion of
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  being within walking distance of a beach for all of our
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  properties was really key and having a good quality portfolio
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  as well. So we turned turning away
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  properties which didn't do and didn't share the right vision of
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  what holiday letting should be in hospitality is really helped
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  as well. And so you've got really a good
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  portfolio which is doing really well as well, which is getting
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  good occupancy, those dialect bookings, good repeat business
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  as well. Yeah.
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  I mean the the 97% direct booking rate that that must have
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  helped. And I know we've talked about
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  this in the past, but just give us the overview of how you get
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  to that 97% direct booking rate and how important that is for
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  for businesses when when they've been looking to acquire you.
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  Yeah, sure. It's not an overnight exercise,
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  direct bookings. We, we out in year, we just come
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  to the end of year 2 of a three-year marketing plan to
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  drive awareness for the brand and for the holidays in
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  Cornwall. And that's where we're starting
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  to see fruition for next year where bookings are significantly
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  up. And it's a real combination of
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  all the marketing disciplines. So we do a lot of PR, we do a
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  lot of influencer stays, social media activity along with the
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  more traditional search engine optimization, paper click
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  activity and print advertising, brand partnerships we do a lot
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  of as well. So we're growing a, we have a
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  very large EA recipient list for our newsletter, which goes out
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  weekly. So we're creating these stories
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  about what it's like to stand on a beach in Cornwall and we're
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  telling them when people want to hear them.
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  So it's not, it's not sell, sell, sell.
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  It's more of a a gentle nudgingly reminder of when
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  people are ready to book a holiday that Beech juice is on
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  their mind and the go to accommodation provider.
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  And you mentioned as well there you go into different events
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  around the country, you're speaking at different events.
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  And I know there are property managers out there thinking I
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  don't have time to do that. But how important and how
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  valuable has it been for you, especially when there'll be
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  other businesses out there saying, well, if I am going to
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  go to this event, I want to see an ROI And I suppose there might
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  not necessarily be an ROI straight away until later down
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  the line. That there really wasn't there
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  hasn't been for us, it's fair to say.
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  We've we've done the shows in Barcelona and the Como, but
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  obviously London and Manchester a couple of weeks ago.
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  And this is building up relationships both with people
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  in the sector, other letting agents locally and in different
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  parts of the country and, and the suppliers as well, talking
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  to the software providers who we, we've adopted over the
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  years. But it's not, it's not.
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  And I came here with Manchester with about 5 or 6 different
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  really valuable insights weaken action.
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  And it's not, it's not a structure, it's just going
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  through a talk and listen to what they've got to say.
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  There's conversations, there's just kind of all kinds of
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  different ideas that come up from just being in the room and
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  talking to people who are attending as well.
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  And when it comes to selling the business, then I mean, how do
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  you feel about it? Are you, what's the process now
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  over the next few months? Are are you sad that it's it's
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  coming to an end or are you are you happy to be out?
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  It's, it's really positive for the brand and the business.
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  I think it's fair to say that beef treats will, will, will
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  thrive from the, from this. For me personally, it's, it's,
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  it's strange. It's, it's up and down that I've
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  got some holiday book in summer next year, which very much
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  looking forward to. So great people that I've worked
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  with. I think it's fair to the team
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  have been an absolutely amazing building up the business and
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  they're very supportive over the changes that we've gone through
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  so far. But sad it's the right thing.
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  It was the right thing to do for me personally.
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  I'll have a holiday and then see what happens after that.
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  And is there? Is there a plan for afterwards?
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  What happens next? Well, we're talking about a year
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  away, so that's kind of like it's probably not as easy to
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  define at the moment. I get it feels like the sector I
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  talk about holiday letting of being a drug, he kind of can't
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  get away from it. It's so addictive and the
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  people, the businesses are just fantastic.
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  And if there was a kind of like a place for me in the world
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  after exit, then that'd be fantastic.
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  Yeah, it's a bit like the mafia isn't it?
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  Sometimes Easy to get into, hard to get out of.
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  Let's move on then. So away from the the acquisition
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  of Beech Retreats by Travel Chapter, we're obviously looking
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  forward to the host Planet Roadshow, which kicks off in
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  Cornwall in collaboration with Beech Retreats on the 5th of
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  February 2026. Tell us, what can people expect
• 13:11
  from this event and why should people be coming along?
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  Very excited to be involved as the first one and the perfect
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  place to have it in Cornwall where we have so many of us
• 13:22
  based down here doing fantastic jobs for, for guests and owners.
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  What, what can we expect? Well, well, I go to a national
• 13:31
  event, I hear some great inspiration like I've just been
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  talking about. So bringing all that expertise,
• 13:36
  enthusiasm and knowledge to Cornwall is very exciting.
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  And it can be quite lonely down here when you are winning a
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  holiday agency and your day, your day is full of emails and
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  phone calls and challenges and opportunities.
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  So to kind of come out of that, that day-to-day into a room full
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  of people who are experts in the field from across the UK and,
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  and the board and hear what they've got to say, saying the
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  kind of the, the new technology, the new software that is
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  available and how it can help me win my business, that support
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  network, a lot of value in that. So to be in the room talking to
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  my peers and some really kind of like industry leaders is a
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  fantastic opportunity and doing it to corn, like I say is, is
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  very exciting. How, how important is it for
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  especially like property management businesses, anybody
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  involved in the sector really, especially in a place like
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  Cornwall where short term rentals is, is so prevalent, How
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  important is it for those businesses to collaborate, to
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  join forces, to share kind of lessons learned and I guess
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  stick up for the industry together?
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  Especially in 2026, we've got plenty of challenges at the
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  moment with rising costs, government in legislation, what
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  do we do with AI, how do we adopt it and how can it make an
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  impact on our business? There's never been more
• 15:06
  important. And of course, the challenge
• 15:07
  we've we've lost to visit Cornwall, hopefully temporarily
• 15:10
  down here as a, as a DMO. So then there were some really
• 15:13
  good people working to get that back up and running in a new a
• 15:16
  new a new format. So hopefully we'll have an
• 15:19
  update on that as well at the event.
• 15:21
  But Cornwall, the destination has been a fantastic one, but it
• 15:27
  has some negative perceptions now about being expensive and
• 15:30
  being kind of not as welcoming as it used to be.
• 15:33
  But it's still a fantastic place to come and people are still
• 15:36
  going to come to Cornwall. So getting together, working
• 15:39
  together as a as a group and sharing experiences is ever more
• 15:44
  important. You know, people still will come
• 15:46
  on holiday in instead of the number one destination in the UK
• 15:50
  and Commonwealth should be kind of leading the way in terms of
• 15:54
  innovation and quality and guest experience.
• 15:56
  And this is exactly the kind of place where we can make that
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  happen. And what's it been like in
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  Cornwall? How's it been in 2025?
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  And you mentioned earlier that you've got plenty of bookings
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  already for for 2026. So So how's it looking and what
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  are the main challenges in Cornwall at the moment?
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  Lots of mixed messages in terms of how well everyone's doing.
• 16:19
  Some attractions are reporting quite a difficult year.
• 16:22
  There has been some negative stories about some major holiday
• 16:26
  parks as well, which have struggled.
• 16:29
  Like we've had a good year. We're about 10% up for 2025 in
• 16:32
  terms of bookings. So that's again that, that
• 16:35
  three-year marketing plan, that investment and that in the PR
• 16:39
  and influencing all the social media work that we do.
• 16:43
  But yeah, it's, it's hard. You know, it's hard out there.
• 16:47
  I mean, change over costs are a particular challenge for owners.
• 16:51
  I think at the moment that that's, that's not going to go
• 16:54
  away. But then you know, we see
• 16:57
  technology which has improved our business, our efficiency and
• 17:00
  our communication a lot over the past couple of years.
• 17:03
  So there are many positives as well.
• 17:04
  We shouldn't be kind of like down about the challenges that
• 17:07
  exist all week. And I think there's plenty of
• 17:10
  demands still out there to go around for people who want to,
• 17:14
  who want to make their business work.
• 17:16
  And what do you expect that people who come along to the
• 17:19
  event on the 5th of February, what do you think that they'll
• 17:22
  get out of it? What do you think that they'll
• 17:24
  walk away with? I think some, there must be some
• 17:28
  really good, there will be some really good outcomes for this.
• 17:32
  I think we talk a lot about AI and I think many of us are still
• 17:35
  trying to work out exactly how we adopt it in a way which
• 17:38
  doesn't add an extra layer of cost, but returns the guest
• 17:41
  experience. What's going to happen with
• 17:45
  statute of registration? So an update on that, what's
• 17:48
  happening with Visit Cornwall? There's lots of things happening
• 17:51
  at the moment and an update on that will be really key.
• 17:56
  But then just to make to make contacts to sit on a round table
• 18:01
  with 678 of your peers, sharing ideas, sharing best practice and
• 18:08
  engaging in an open and positive way is is what we're looking to
• 18:14
  do. Absolutely, Yeah.
• 18:16
  And just for those of people out there who are maybe not aware of
• 18:19
  the the format of these events. So there'll be a round table
• 18:23
  approach for the majority of of the roadshow events depending on
• 18:27
  the size of the venue. We will be doing that in
• 18:29
  Cornwall. We will have a limited number of
• 18:32
  panels and talks probably right at the start involving industry
• 18:36
  leaders in Cornwall and the people involved in lobbying and
• 18:40
  and legislation and that kind of thing.
• 18:42
  Price Labs, our title sponsor for the event, will then be
• 18:45
  sharing data about exactly what's happening in the region.
• 18:49
  And then we'll have a lot of round tables.
• 18:51
  There'll be Ice Breakers, there'll be competitions,
• 18:54
  there'll be opportunities to learn from each other and really
• 18:57
  drive the industry forward. And we want to make sure that
• 19:00
  there are real, true outcomes as well.
• 19:01
  So we'll be asking people to kind of write on board, you
• 19:04
  know, what they're going to commit to after the event, what
• 19:07
  they've learned. And then we'll take that away
• 19:10
  and we'll turn that into an infographic.
• 19:11
  And then everybody who comes will received that infographic
• 19:15
  post event so that they can commit to what they've to what
• 19:18
  they've committed to. So I think Andy, a really kind
• 19:21
  of a new type of event for the industry and 1:00 that's going
• 19:24
  to be really engaging for people because like, I mean, we've
• 19:27
  hosted events in the past and we've both been to events where
• 19:29
  there's a lot of information being thrown at you.
• 19:31
  But I think here's a real chance to collaborate and and share
• 19:35
  your own story, you know, whether you're running one
• 19:37
  property or hundreds. Well, as an attendee, I'm very
• 19:40
  aware of that dynamic and that we can hear some great speeches
• 19:43
  on stage where you have write stuff down, you go back home and
• 19:46
  you've got emails and everything to deal with.
• 19:48
  So it's actually kind of having something which is easy to
• 19:51
  implement, is measurable, is inspirational as well.
• 19:55
  And quite often I've come away and easy end up listening to
• 19:59
  brilliant people talking. But.
• 20:01
  You actually kind of writing down notice that I should be
• 20:02
  doing so it gets you away from your desk.
• 20:05
  It gets you into a room full of people who are also thinking
• 20:08
  like you about he's an opportunity and he's something I
• 20:12
  can do to address the challenges and make the most of the
• 20:14
  opportunities that are going to arise in 2026.
• 20:18
  So I think if you're in Cornwall, and especially if
• 20:20
  you're running any business that's associated with holiday
• 20:23
  letting, don't cocoon yourself in your office, come out and
• 20:27
  meet us and, and be part of the community.
• 20:30
  Because I think it's, it's an easy excuse, isn't it, to say,
• 20:32
  oh, all the events are in London or somewhere else around the UK.
• 20:35
  But this one, if you're in Cornwall, it's, it's right on
• 20:38
  your doorstep. So please do come along and join
• 20:41
  us. If you're interested in getting
• 20:43
  a ticket, it's £40 a ticket. So we've kept it as low as
• 20:47
  possible. Go to host planet dot club
• 20:51
  forward slash host Dash, Planet Dash roadshow.
• 20:55
  If you don't remember that full web address, just go to our
• 20:59
  website and you'll see everything on the homepage, all
• 21:01
  the links there. As we said, the strategic
• 21:04
  partner will be the short term Accommodation Association.
• 21:07
  The title sponsor is Price Labs. We're also working with the
• 21:11
  women in short term rentals community headed up by Lisa
• 21:15
  Rhodes. They will be there as well.
• 21:18
  Other brands fans that will be sponsoring include host away,
• 21:23
  beyond super Control, Zeal tax. So if you need to know more
• 21:27
  about the FHL tax changes, great opportunity to chat to Matt and
• 21:31
  the team, a guesty group accommodation convert your stay
• 21:36
  and also a couple of local businesses, Andy, the Cornish
• 21:39
  Food Box Company and Sea space. And I think this is another
• 21:44
  reason to come along is that we're trying to involve local
• 21:46
  companies as well to showcase their their wares to to the
• 21:49
  wider sector. And I think it's really
• 21:51
  important that each event of the roadshow is is for that
• 21:54
  particular reason. And Cornish Food Box, it's great
• 21:57
  to have them along with they work with many of the agencies
• 22:00
  providing really kind of customized and high quality
• 22:03
  Cornish produce direct to the holiday let for the guests to
• 22:07
  order. So you're actually getting the
• 22:09
  best of the local produce all kind of sauced in Cornwall ready
• 22:14
  for when you arrive on holiday. So that's kind of again, we'll
• 22:18
  be talking about a lot about the, the, the market in Cornwall
• 22:21
  demands for Cornish holidays in 2026 and of course visit
• 22:27
  Cornwall as well, which would that be a part of conversation.
• 22:31
  I'm sure a lot of people will be chatting about that.
• 22:33
  So yeah, it's the Thursday, the 5th of February from 9:00 AM to
• 22:37
  5:00 PM. We'll be serving a bit of lunch,
• 22:41
  tea, coffee as well. And it's at the Oceanside Hotel.
• 22:45
  So go to the website, houseplanet dot Club, and you'll
• 22:49
  get a link through to where you can get a ticket.
• 22:52
  We'll also put the ticket links in the show notes.
• 22:56
  Andy, it's been a real pleasure. Thank you for joining us again
• 22:59
  on the Host Planet podcast. Welcome.
• 23:01
  Enjoy it. Thank you.
• 23:02
  Great to chat to Andy Easton there from Beech Retreat.
• 23:05
  Remember to get your ticket for the Houseplanner Roadshow, head
• 23:08
  to our website Houseplanner dot Club.
• 23:11
  Tickets are just £40 each and be quick because they're selling
• 23:15
  fast. That's just about it for today's
• 23:17
  episode. Remember this podcast is brought
• 23:19
  to you in collaboration with House Philly, which is trusted
• 23:22
  by short term rental professionals across the globe.
• 23:25
  As a Houseplanner listener, you get 2 exclusive offers, $500 off
• 23:29
  onboarding for House Philly's property management software.
• 23:32
  Just use the code Planet, 530% of digital guidebooks for life.
• 23:38
  Use the code Houseplanet GB. To grab these deals, click the
• 23:42
  link in the show notes or head to housefullie.com.
• 23:45
  For more free education tips and trends from the STR industry,
• 23:49
  visit Houseplanet dot club where you can sign up for our
• 23:52
  newsletter, listen to our podcasts, and download a suite
• 23:56
  of ebooks for hosts and property managers.
• 23:58
  That's it for today's episode. Until next time.