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
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.”
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
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.”
