Vacation rental management company cuts 14 percent of staff

Evolve

An Evolve-managed property in Hawaii. (Courtesy Evolve)

A Denver-based vacation rental management company that has raised hundreds of millions since its 2011 founding has cut its staff count by 14 percent.

Evolve CEO and co-founder Brian Egan said in a May 17 memo to staff that demand for the company’s vacation homes has failed to keep up with supply.

“We are operating in a market that has become increasingly dynamic and volatile,” Egan wrote. “Marketwide supply growth has considerably outpaced demand growth, which has led to average daily rates, bookings, and revenue per property coming in below our expectations.”

Brian Egan

Brian Egan

The 14 percent cut equates to 164 people. Evolve now has 987 employees, according to a company spokeswoman.

In Egan’s memo, which the company posted online, he said the company has “a healthy balance sheet” and that revenue per property remains above pre-pandemic levels. But a company snapshot focused on this past winter shows per-property revenue down 21 percent compared to the same period the previous year, which Evolve attributed in part to inflation.

“We will be supporting fewer customers and will generate less revenue than we planned heading into this year,” Egan wrote. “As a result, we need to reduce the size of our team to align our organization and overall expense structure to this new market context.”

Evolve markets and manages rental properties on behalf of owners, which can include listing them on sites like Airbnb, handling communication with guests and coordinating with cleaning teams. The company charges a 10 percent management fee. 

Evolve said in a 2022 news release that it managed over 19,000 properties. The company has raised $235 million, most recently a $100 million round from Durable Capital Partners LP early last year. Evolve is headquartered in 72,000 square feet it leases at 717 17th St. downtown.

This decision was made with deep deliberation and was only chosen after all other options had been rigorously evaluated,” Evolve spokeswoman Ashley Taylor told BusinessDen. “Evolve is in a strong financial position and we made this difficult decision now to ensure we retain that position.”

Evolve

An Evolve-managed property in Hawaii. (Courtesy Evolve)

A Denver-based vacation rental management company that has raised hundreds of millions since its 2011 founding has cut its staff count by 14 percent.

Evolve CEO and co-founder Brian Egan said in a May 17 memo to staff that demand for the company’s vacation homes has failed to keep up with supply.

“We are operating in a market that has become increasingly dynamic and volatile,” Egan wrote. “Marketwide supply growth has considerably outpaced demand growth, which has led to average daily rates, bookings, and revenue per property coming in below our expectations.”

Brian Egan

Brian Egan

The 14 percent cut equates to 164 people. Evolve now has 987 employees, according to a company spokeswoman.

In Egan’s memo, which the company posted online, he said the company has “a healthy balance sheet” and that revenue per property remains above pre-pandemic levels. But a company snapshot focused on this past winter shows per-property revenue down 21 percent compared to the same period the previous year, which Evolve attributed in part to inflation.

“We will be supporting fewer customers and will generate less revenue than we planned heading into this year,” Egan wrote. “As a result, we need to reduce the size of our team to align our organization and overall expense structure to this new market context.”

Evolve markets and manages rental properties on behalf of owners, which can include listing them on sites like Airbnb, handling communication with guests and coordinating with cleaning teams. The company charges a 10 percent management fee. 

Evolve said in a 2022 news release that it managed over 19,000 properties. The company has raised $235 million, most recently a $100 million round from Durable Capital Partners LP early last year. Evolve is headquartered in 72,000 square feet it leases at 717 17th St. downtown.

This decision was made with deep deliberation and was only chosen after all other options had been rigorously evaluated,” Evolve spokeswoman Ashley Taylor told BusinessDen. “Evolve is in a strong financial position and we made this difficult decision now to ensure we retain that position.”

This story is for our paid subscribers only. Please become one of the thousands of BusinessDen members today!

Your subscription has expired. Renew now by choosing a subscription below!

For more informaiton, head over to your profile.

Profile


SUBSCRIBE NOW

 — 

 — 

 — 

TERMS OF SERVICE:

ALL MEMBERSHIPS RENEW AUTOMATICALLY. YOU WILL BE CHARGED FOR A 1 YEAR MEMBERSHIP RENEWAL AT THE RATE IN EFFECT AT THAT TIME UNLESS YOU CANCEL YOUR MEMBERSHIP BY LOGGING IN OR BY CONTACTING [email protected].

ALL CHARGES FOR MONTHLY OR ANNUAL MEMBERSHIPS ARE NONREFUNDABLE.

EACH MEMBERSHIP WILL ONLY FUNCTION ON UP TO 3 MACHINES. ACCOUNTS ABUSING THAT LIMIT WILL BE DISCONTINUED.

FOR ASSISTANCE WITH YOUR MEMBERSHIP PLEASE EMAIL [email protected]




Return to Homepage

Comments are closed.