A London-based software company that aids hotels in setting optimal pricing for their accommodations has officially achieved unicorn status, recently securing $370 million (£293 million) from American private equity giant KKR.

Lighthouse, founded by Belgian entrepreneurs Matthias Geeroms and Gino Engels in 2012, currently assists around 70,000 hotels and rental properties, including major brands like Radisson, Accor, and IHG, alongside smaller bed and breakfasts.

This latest investment values Lighthouse at over $1 billion, marking its emergence as a unicorn. According to insiders, the company is projected to generate more than £79 million in annual revenue this year, a significant increase from £42.5 million the previous year.

The funds will be allocated toward the advancement of its AI-driven data analytics software and international expansion, potentially through acquisitions.

Sean Fitzpatrick, the CEO, referred to the company as a “12-year overnight success,” emphasizing its growing reputation within the travel technology sector since 2021. He commented on the market’s landscape, highlighting the dominance of a few large players like Amadeus and Oracle.

“KKR invested because we have broken through, and we are achieving the scale necessary to disrupt some of the incumbents. The revenue profiles of these large firms demonstrate the significant opportunities ahead,” Fitzpatrick noted.

The software offered by Lighthouse enables property managers to forecast pricing trends for the upcoming year and adjust rates for unoccupied rooms frequently based on expected demand. It utilizes approximately 300 million travel and leisure market data points daily.

Fitzpatrick advised optimizing pricing at least four times a day to remain competitive in this dynamic market. He pointed out that among over a million hotels worldwide, only about 5 percent currently utilize platforms like Lighthouse, with many still relying on manual pricing strategies.

He explained that surge pricing for popular events, such as concerts or major sporting events, exists within the industry but is not a standard practice. Hotel managers often strive to leverage their rooms effectively, using advance booking data from routes like flights from Berlin to London to promote accommodations to potential guests, ahead of competitors.

Lighthouse, which employs 700 staff and was previously known as OTA Insight before a rebranding last year, reported a pre-tax loss of £3.9 million last year. The company had raised $80 million in funding in 2021.

KKR anticipates significant prospects for Lighthouse as it positions itself as a key player within the $15 billion travel and hospitality technology sector, building on its reputation for substantial investments.