Analysis: The state of the pet hospitality sector
From investments to mergers and acquisitions, the field is generating interest within the industry.
A 2022 survey by PETS International and Yummypets on the spending habits of pet parents in Canada, France, the UK and the US concluded that the vast majority of respondents (62.8%) used pet services regularly. As many as 27% of respondents used pet daycare or pet-sitting services.
The popularisation of pet services is behind some of the recent investments in the pet hospitality sector. GlobalPETS takes a look.
K9 Resorts lands $10M investment
The New Jersey-headquartered luxury pet boarding and daycare franchise is looking to open 100 locations by the end of 2025 after securing an investment of $10 million (€9.2M) from Partners Pacific Resorts, one of its multi-unit franchisees.
Partners Pacific Resorts currently operates 30 K9 Resorts locations and has ties with international hotels and resorts firm Kerzner, which operates luxury hotel chains such as Atlantis Resorts and One&Only.
“With this strategic investment from Partners Pacific Resorts, K9 Resorts will continue to maintain and anticipate the exciting growth trajectory of the pet care industry,” says Jason Parker, Co-Founder and CEO of K9 Resorts Franchising.
Founded in 2005, the company claims it is “leading the pack” in luxury pet care franchises, with more than 165 resorts across 28 US states currently operational or in various stages of development.
M&A is the way for PRHG
Pet services provider Pet Resorts Hospitality Group (PRHG), along with Trivest Partners and Queens Court Capital, added 5 pet resort brands to its portfolio back in January.
The new brands include Meadowlake Pet Resort and Training Center in Houston, Texas; Olde Towne Pet Resorts in Washington DC; Playtime Pet Resort in Philadelphia; Paws ‘n’ Rec in Tampa, Florida; and Williamsburg Pet Hotel and Suites in St. Louis, Missouri.
These acquisitions bring the total number of pet resorts across the company to 17.
PRHG was founded in Delaware in 2023 as a partnership between Queens Court and Trivest. It operates a buy-and-build model in the pet services industry. The company aims to expand its operations across various US states, with the investment coming from Trivest’s $600 million (€555M) fund.
Betting on Australia’s pet resorts
Ray White Capital, the investment unit of the Australian real estate firm, raised A$40 million ($26.1M/€24.3M) earlier in 2023 for a fund focusing on the pet accommodation sector.
“There has been a large increase in the number of pet animals in Australia in recent years, particularly over the COVID-19 pandemic,” the company wrote in a LinkedIn post.
It added that its new fund had identified “a pipeline of well-located pet boarding facilities across Australia” that it intends to acquire. To achieve this, the company has partnered with Pet Resorts Australia, which offers pet boarding facilities in six locations across the country, to manage the new facilities that will be acquired by the fund.
RW Capital hopes to achieve an overall return target of 20% per annum over a 3–5-year investment period from the fund and to pay a dividend of 6–8% in its first year.
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