Group travel is back — and Groups360 has fresh funding to capitalize on its return.
The Brentwood-based company has completed a $35 million round of funding, according to a news release, led by New York venture capital firm Zigg Capital, with participation from Blackstone Innovations Investments and Fir Tree Partners.
The new capital is another big raise for Groups360, which received a $50 million investment from some of the world’s largest hotel brands in 2019, including Accor, Hilton, InterContinental Hotels Group and Marriott International. Group360’s platform helps large groups find and book hotel rooms and event space, with booking capabilities at 200,000 hotel properties worldwide.
Groups360 has recently signed commercial partnerships with big-name travel brands, including Omni Hotels & Resorts, TFE Hotels and Premier Inn. The company will use the funds to accelerate its growth, specifically in Europe, the Middle East, Africa and Asia, according to the release.
"Groups360 is reshaping the hospitality industry in a manner that makes booking groups simple, transparent, and efficient for both hotels and event organizers,” Groups360 CEO Kemp Gallineau said in the release. “Now, with support from our new partners, Groups360 is positioned to more quickly seize the opportunities which lie ahead for improving group travel.”
The deal comes as the hotel industry bounces back from the Covid-19 pandemic, one of the hardest hit sectors of the U.S. economy. Nashville-based Ryman Hospitality Properties, where Gallineau used to be an executive, reported $377.4 million in revenue for the fourth quarter. That was a 198% increase from the same period the previous year, despite the spread of the Omicron variant. Ryman also saw a 10.8% increase in group room bookings in 2021 from the previous year, but that number was still down nearly 9% from pre-pandemic 2019.
“The Blackstone Innovations Investments team is focused on identifying, investing in, and partnering with pioneering companies like Groups360 to help take their businesses to the next stage of growth,” Blackstone Chief Technology Officer John Stetcher said in the release. “We believe that Groups360’s inventory distribution model and instant booking capability will help drive industry-wide transformation and can create value for Blackstone’s real estate portfolio.”
