The acquisition of Travelers Haven, which offers customisable sourcing of flexible rentals on demand to businesses with access to up to 2000 US cities, will give Blueground the ability to provide accommodations to clients on demand in the United States in addition to its already established inventory of apartments around the world.
The combined organisation will employ more than 1,200 people and is expected to reach over $600 million in revenue in 2023.
At a time of growth for Blueground, the company will be able to offer furnished apartments across a wider geographic scope beyond its core urban centre focus as a result of the acquisition. With apartments in 11 cities in the United States and 19 cities internationally, the acquisition will see more housing options in more locations for corporate clients in the United States, while also growing Blueground’s corporate client base.
Co-founded 10 years ago by CEO Alex Chatzieleftheriou, Blueground operates what it says is “the largest, curated global network of furnished rentals for 30+ day stays for individuals and corporate clients alike”. After many years as a business traveller himself, he had experienced first-hand the pain points of living out of hotels for work for months at a time, and he aspired to create a way that people could feel settled and at home, while free to explore the world.
Chatzieleftheriou said: “When I set out to create Blueground, my goal was to offer a simple way for people to move freely between neighbourhoods, cities, and countries around the world, while providing high quality service, so they can explore easier and more efficiently. We have deep admiration for the Travelers Haven team and what they’ve built over the last 15 years.
“I am excited about this next chapter together to provide turn-key, tech-enabled homes both on-demand and readily available at a global level,” he added.
Founded in 2008 by Elia Wallen, Travelers Haven caters to a wide range of clients, providing stays that are tailored to their specific needs and location, with options to search by length of stay, budgetary requirements, and more. In 2022, the company provided more than 10,000 people with rentals by sourcing apartments on an on-demand basis through software and a network of vendors making up a virtual inventory of 2,700+ apartments that spans every US city and town.
Headquartered in Denver, Colorado, Travelers Haven is a bootstrapped business which exceeded $100 million in revenue in 2022.
Carlos Abisambra, president and CEO, Travelers Haven, said: “We’re proud of Travelers Haven’s success over the last 15 years, as we’ve bridged the workforce housing gap and created a niche in the market with flexible rentals on-demand. Travelers Haven and Blueground have the same goals and vision for the future of housing, and we’re ready for this next chapter to bring the on-demand category to a global audience.”
For now, Blueground and Travelers Haven will continue to operate as separate entities, with plans to fully integrate in the future. In the meantime, the two companies will be sharing best practices and offering their combined services to each other’s clients, while working together to merge tech platforms and service offerings.
The acquisition adds to the offerings available through Blueground for Business, the corporate service of the company. Blueground for Business is designed to provides a seamless booking experience for HR and travel managers with custom benefits, including a dedicated account manager and direct booking links for clients.
Currently, 35 per cent of Blueground’s revenue is from Blueground for Business – a figure that climbs to 50 per cent for the group with the addition of Travelers Haven’s revenue. The service plans to double in amounts in 2023.
It also represents Blueground’s second acquisition in three months; the company recently entered the Latin American market by acquiring Brazilian proptech startup Tabas in December.