• Vacasa announced it would acquire TurnKey Vacation Rentals this week. 
• Both focus on rental management, and the deal should boost Vacasa's efforts as it considers an IPO. 
• The acquisition is also a sign that consumer optimism in travel is returning. 

Vacasa announced Thursday it is acquiring TurnKey Vacation Rentals in a cash and equity deal that would bring one of its main rivals under its umbrella. 

The acquisition brings another 6,000 vacation rentals to Vacasa's portfolio, which already counted 25,000 properties active on its platform. The purchase price was not disclosed.

Both Vacasa and TurnKey create tech that makes it easier for travelers to find vacation rentals that meet their needs while allowing homeowners to earn extra cash from their vacant properties. 

While sites like Airbnb and VRBO provide avenues for homeowners to advertise their rentals to guests, Vacasa and TurnKey go a step further by providing management services such as professional photography and cleaning, and assistance with taxes and permits. 

"Our shared approach to innovative solutions — including dynamic pricing, smart-home technology, and security and fraud protection — makes our companies well suited to lead the industry forward together," Matt Roberts, Vacasa's CEO, said. "Our joint commitment to technology is backed by our people, and when the deal closes, we'll have more boots on the ground ready to serve our homeowners and guests." 

After the deal closes, the two companies will combine operations, but there will be no immediate modifications to the TurnKey brand and website, Roberts said. 

Both companies have also partnered with the home-sharing arms of hotel giants to increase visibility for the homeowners on their platforms. For example, Wyndham Rewards members can book stays at Vacasa's entire portfolio through the hotelier's own loyalty program. TurnKey has a similar arrangement for select properties with Homes & Villas by Marriott International.

The TurnKey acquisition also marks a sign of optimism in the future of travel.

Though Vacasa laid off a number of employees and cut executive pay by a reported 50% early on in the pandemic, it has since benefited from the trend of travelers looking to book vacations in destinations they can drive to, and in rental homes rather than hotels. When restrictions began to lift in May, the company brought back employees who had been furloughed — and some who had been laid off — to meet pent-up demand. It has also since ended its executive pay reductions. 

Roberts said Vacasa saw record levels of new reservations in January and February, with stays currently booked through the summer of 2021. He said this signals the return of consumer confidence in travel. 

"While the pandemic has accelerated the adoption of short-term rentals, the industry was already seeing a shift away from hotels and toward rental homes before the onset," Roberts said. "Now more people are being introduced at a quicker rate to the value, convenience, and attractiveness of vacation rentals, and we think this trend is here to stay." 

Prior to the acquisition, TurnKey raised $120 million in venture funding from investors, including Altos Ventures and Adams Street Partners. 

Vacasa, meanwhile, has raised a total of $634.5 million in venture capital since its founding in 2009 and has been valued at more than $1 billion. In June, it announced a $108 million Series D round.

It has been pegged by analysts as a potential IPO candidate as soon as this year and recently appointed Jamie Cohen, who has prior IPO experience, as its CFO. 

Roberts confirmed an IPO was a possibility. 

"As demand for vacation rentals continues, our team is laser-focused on execution and building a strong business that drives revenue for homeowners and memorable guest experiences," Roberts said. "But with growth comes opportunity, and an IPO is definitely part of a possible future for us."

Watch: Here's what it's like to travel during the coronavirus outbreak

ncG1vNJzZmivp6x7o8HSoqWeq6Oeu7S1w56pZ5ufony3rcKaqpplkZi%2BtrXRnqpmrKWnu6yx2GabnpmcYq6vsIyarpqhpKh6sbvSrWSpmZ6Zsq61wmarq5mmmrluvsSnmKKro5a7pLGMa2draV1o