NEW YORK, New York, and ATLANTA, Georgia—M3, LLC announced it has signed a definitive agreement for a majority investment from Blackstone Growth and affiliated funds. The investment will help to accelerate the company’s growth by enhancing new product expansion and supporting the adoption of M3’s software. AAHOA, representing nearly 20,000 hotel owners and 60 percent of hotels across the United States, will make its first strategic investment alongside Blackstone.
Founded in 1998 by John McKibbon to address the accounting needs of his own family’s hotel management company, M3 has grown into a hospitality-focused back-office accounting software platform that serves as the system-of-record for financial data for more than a thousand hotel operators and management companies. It currently offers technological solutions including accounting, labor management, and business intelligence to more than 8,000 properties across North America.
John McKibbon, founder of M3, said, “Blackstone’s background in hospitality made them the natural choice as our first equity partner. Together, we look forward to propelling our innovation and growth to best serve our customers in an era of continued technological advancement.”
Ramzi Ramsey, a managing director at Blackstone, said, “M3 has become a leading finance and accounting software platform for countless independent and family-owned hotel operators, as well as some of the largest hotel management companies, that have relied on its technology to support the professionalization and scale of their businesses. As M3’s first institutional capital partner, we’re excited to harness Blackstone’s deep expertise and network within the real estate and technology sectors to help enhance its product offering to better serve new and existing companies as M3 continues to grow.”
Miraj S. Patel, AAHOA chairman, said, “AAHOA is excited to make its first strategic investment alongside Blackstone, a move that will significantly benefit our members and the entire hospitality industry. This partnership with M3 will bring AAHOA members access to advanced technology and innovative solutions that can enhance operational efficiency and drive growth. We are committed to empowering our members with the tools and resources needed to succeed in an evolving market, and this collaboration marks a pivotal step toward achieving that goal.”
Terms of the transaction were not disclosed. Carlton Fields, P.A., served as legal counsel to M3 and Houlihan Lokey has provided certain assistance to M3 in connection with the transaction. Evercore served as exclusive financial advisor to Blackstone and Kirkland & Ellis LLP served as legal counsel to Blackstone.
