Summary
The fund managers believe that Siteminder Ltd has strong growth potential driven by its innovative technology solutions for the hospitality industry. In their opinion, the company's recent partnerships and expanding market presence position it favorably against competitors. They highlight the importance of robust financial performance and consistent revenue growth as key indicators of the company's stability. Furthermore, the fund managers express confidence in Siteminder's ability to adapt to market trends, particularly in the wake of digital transformation in hospitality. They note that customer satisfaction and retention rates are critical metrics that reflect the company's operational success. Overall, the fund managers view Siteminder Ltd as a compelling investment opportunity, with potential for long-term value creation in a recovering market.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Source: Trading View
Commentary From The Managers
Seneca Financial Solutions
10 Sept 2025
$6.98
Summary
- Seneca Financial Solutions acquired Siteminder Ltd at the end of July.
- It is a growing, recurring revenue software business.
- The market had previously lost confidence due to weak cash flow.
- After thorough analysis, revenue growth is likely to be re-accelerating.
- There is potential for upside surprise on cash flow.
- Reported $14.3m EBITDA, leading to a stock increase of up to 31% on the day of the announcement.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Commentary From The Managers
Seneca Financial Solutions
10 Sept 2025
$6.98
- Seneca Financial Solutions acquired Siteminder Ltd at the end of July.
- It is a growing, recurring revenue software business.
- The market had previously lost confidence due to weak cash flow.
- After thorough analysis, revenue growth is likely to be re-accelerating.
- There is potential for upside surprise on cash flow.
- Reported $14.3m EBITDA, leading to a stock increase of up to 31% on the day of the announcement.
Summary
Seneca Financial Solutions
31 Aug 2025
$6.89
- Siteminder (SDR), a provider of software for hotels, experienced a 33% increase following its FY25 results.
- The company reported a 27% growth in Annual Recurring Revenue (ARR), with acceleration noted in the second half of the year.
- Future contributions from new products are anticipated, despite their limited impact in the recent results.
- Siteminder's FY25 results indicated the company is achieving operating leverage and profitability is on the rise.
- Underlying EBITDA improved significantly to $14.3 million, compared to $0.9 million the previous year.
Summary
Blackwattle Investment Partners
31 July 2025
$5.21
- Blackwattle Investment Partners continues to hold a positive outlook on SiteMinder Ltd, a travel technology business that aids hotels in managing inventory and bookings.
- Shares in SDR experienced a 17.6% increase following reports of a recovery in travel activity.
- The company announced an investor day scheduled for September, which is anticipated to provide significant updates.
- This investor day will focus on the Smart Platform strategy, which has been operational for the past six months.
- The Smart Platform aims to deliver novel, high-value products to clients, potentially transforming the revenue model for the group.
- Blackwattle Investment Partners believes the strategy day will offer crucial insights, enabling investors to recognize the potential upside of the company.
Summary
Lakehouse Capital
30 June 2025
$4.43
- SiteMinder was a drag on the portfolio in FY25, primarily due to uncertainty in the travel environment and the business not achieving sustained profitability.
- Despite challenges, SiteMinder is strategically shifting up-market to focus on larger hotel groups, which promise greater long-term value through higher transaction volumes.
- This strategic shift required temporary upfront discounting to encourage adoption, impacting top-line growth, which was reported at 22%.
- SiteMinder exits FY25 in a stronger operational and financial position compared to the previous year, with improved free cash flow margins.
- Unit economics are strengthening, with the LTV/CAC ratio improving to 6.1x, indicating a significant return on sales and marketing investments.
- This situation resembles Xero circa 2015, where heavy losses were offset by building underlying fundamental value.
- New products like Channels Plus and Smart Distribution are gaining traction and are expected to drive future revenue growth.
- With half of the workforce now in lower-cost regions, future revenue growth is likely to enhance margin performance and bottom-line results.
- From a valuation perspective, SiteMinder is attractively positioned, trading at 4.4x forward enterprise value to sales, at the lower end of its historical range.
- Lakehouse Capital took the opportunity to increase its investment during share price weakness following the half-year results.
Summary
Yarra Capital Management
11 June 2025
$4.74
- Siteminder provides electronic distribution and revenue management tools to hotel and accommodation providers, representing an almost infrastructure-like exposure.
- The diversity of Siteminder's client list is a key attractive feature, showcasing a long tail of clients.
- Siteminder has shown its ability to increase monetization intensity over time.
- Since its listing, the company has achieved double-digit revenue growth annually.
- Siteminder has also been effective in controlling costs, enhancing its financial health.
- Yarra Capital Management believes Siteminder is at an inflexion point towards cash flow positivity.
- There is a strong growth path ahead for Siteminder, making it an attractive investment thesis.
Summary
Lakehouse Capital
30 Apr 2025
$4.13
- Lakehouse Capital notes that the biggest detractor in April was SiteMinder, falling by -5.5% due to concerns about a weakening travel market.
- Despite the drop in travel to the United States and earnings downgrades in the global travel sector, Lakehouse Capital believes SiteMinder's subscription software foundation provides resilience.
- SiteMinder’s revenue during COVID (FY21) remained flat, contrasting sharply with declines of 50% or more for many other companies in the travel industry.
- In a trading update in early May, management reiterated expectations for annualised recurring revenue (ARR) growth to accelerate from 22% achieved in the first half, targeting June 30, 2025.
- This growth is supported by new products like Channels Plus, which has seen a 50% increase in user numbers since December.
- Despite heavy investment in new products and customer acquisition, the business is on track to be underlying free cash flow positive for the 2025 financial year.
- Lakehouse Capital supports ongoing customer acquisition spending, noting a healthy payback of six-times the value of the investment.
- While the travel sector's climate remains uncertain, SiteMinder's strategic execution and current trajectory are viewed as promising.
Summary
Endeavor Asset Management
28 Feb 2025
$4.96
- Endeavor Asset Management notes that SiteMinder (SDR) experienced a decline in February due to lower than expected first half revenue.
- The revenue miss was attributed to discounting strategies aimed at attracting larger hotel clients.
- Market attention is now focused on the success of upcoming product launches.
- SDR has reaffirmed its $5–10 million Smart Products forecast for 2H25.
- The company remains on track for 30% growth by the end of the year.
- Endeavor Asset Management identifies long-term upside potential resulting from SiteMinder's strong competitive positioning.
- In light of recent price weakness, Endeavor has increased their position in SiteMinder.
Summary
Lakehouse Capital
28 Feb 2025
$4.96
- SiteMinder reported mixed results, with healthy operating metrics but revenue growth below market expectations.
- Revenue growth decelerated to 17.2%, while annualised recurring revenue (ARR) accelerated to 22.0% growth in constant currency, organic terms.
- The slowdown in revenue growth was attributed to increased client incentives aimed at attracting larger hotels to switch to SiteMinder’s platform.
- Net room additions increased by more than 50% year-on-year, indicating successful strategy implementation.
- Lakehouse Capital is comfortable with the trade-off of short-term revenue impact for long-term gains by winning larger properties.
- Subscription properties increased by 13.5% to over 47,000, with stable monthly revenue churn.
- Customer lifetime value and acquisition costs improved by 6.8% and 7.3%, respectively.
- Average customer lifetime value to customer acquisition cost (LTV/CAC) improved to 6.1x, reflecting better unit economics.
- Management's decision to offer short-term incentives is aligned with long-term monetisation goals for transactional products.
- Underlying EBITDA margin improved to 5%, up more than 6 percentage points year-on-year.
- Lakehouse Capital believes management is well placed to execute on growth opportunities and enhance profitability.
Summary
Endeavor Asset Management
31 Jan 2025
$6.00
- Endeavor Asset Management initiated a position in SiteMinder (SDR), a high-quality technology business.
- SDR services approximately 44,500 properties across more than 150 countries.
- It operates two hotel management platforms targeting small operators (less than 20 rooms) and medium-large operators (20+ rooms).
- The core technology enables hotel operators to manage rooms, rates, and availability across over 400 booking channels.
- SDR offers complementary services including a hotel website builder, performance reporting, payments capabilities, and a white-label booking engine.
- The total addressable market for SDR exceeds 1 million properties globally, indicating significant room for growth at ~4% market penetration.
- With a strong track record and innovative product suite, SDR is expected to achieve over 20% revenue CAGR through to FY29.
- Beginning in FY26, anticipated revenue growth is expected to lead to significant net profit after tax (NPAT) as operating margins of 40-50% are realized.
- This growth is expected to culminate in attractive free cash flow (FCF) generation for the business.
Summary
LHC Capital
31 Dec 2024
$6.04
- LHC Capital sold their investment in SiteMinder due to achieving significant short-term gains.
- SiteMinder operates a global software platform for hotels, primarily focused on channel management.
- The company has a strong track record of organic growth and market leadership with over 44,500 customer subscriptions.
- Annual revenue for the year ending June 2024 exceeded A$190 million, indicating robust performance.
- LHC Capital saw an opportunity for SiteMinder to capture more value from A$75 billion in annual transactions.
- The launch of the Smart Platform strategy aims to align revenue with transaction value, which could enhance take rates.
- New product Dynamic Revenue Plus (DR+) will provide pricing recommendations to hotels, increasing yield capture.
- Changes to the Long-Term Incentive (LTI) structure align management rewards with shareholder returns and cash generation.
- After a 30% increase in share price, LHC Capital decided to sell their position at attractive prices.
- LHC Capital plans to monitor the Smart Platform launch closely in 2025 for potential future investment.
Summary
Blackwattle Investment Partners
31 Aug 2024
$4.86
- Blackwattle Investment Partners continues to hold their position in SiteMinder Ltd.
- Siteminder shares fell 10% in the past month, despite delivering an in-line result.
- The decline in share price is associated with an outlook for travel expenditure.
- Global and domestic travel agents have reported softness in leisure demand.
- Approximately 90% of SiteMinder’s demand is driven by subscription fees from hotel partners.
- This demand is not linked to the underlying revenues of hotels.
Summary
Elston Asset Management
30 June 2024
$5.09
- Elston highlights the evolution of the hotel industry, noting the rise of online booking providers that complicated inventory management for hoteliers.
- SiteMinder, established in 2006, introduced a channel manager to streamline hotel inventory management across multiple OTAs.
- The company has expanded its offerings to include solutions for room distribution, marketing, bookings, payments, and analytics, catering to various hotel sizes.
- SiteMinder connects easily with other software providers, enhancing the technology stack for hotels with older systems.
- With only 4.2% market penetration, SiteMinder has significant growth potential in adding new property subscribers.
- The company reported a substantial increase in transaction-related revenues, from $29.2m to $48.3m in FY23, driven by higher adoption of transaction products.
- SiteMinder aims to increase its share of the global gross booking value (GBV) pie, currently processing only 7% of the market.
- Management's focus on innovation and new product development is expected to enhance the value proposition for hoteliers.
- Elston notes the competitive landscape is fragmented, with SiteMinder recognized as an industry leader.
- SiteMinder's investment thesis includes factors like switching costs, technology leadership, and scale, which contribute to its sustainable competitive advantage.
- Despite inherent risks, Elston sees SiteMinder positioned for strong sales growth and positive earnings outlook.
- Overall, Elston expects SiteMinder to deliver returns exceeding the portfolio’s average over a 5-year horizon.
Summary
Elston Asset Management
31 Mar 2024
$5.63
- SiteMinder was added to the portfolio in July 2023 at a weight just above 2%.
- Elston's understanding of the business continues to grow.
- The company is posting strong financial results.
- The product pipeline is coming to market, enhancing confidence.
- Elston's confidence in SiteMinder's longer-term potential has improved.
- As a result, SiteMinder has become one of the portfolio’s 5 largest holdings.
Summary
Elston Asset Management
30 Sept 2023
$4.62
- SiteMinder is a supplier of guest acquisition, reservation, payments, and market intelligence software solutions.
- It specializes in the mid to small end of the market.
- The business operates globally with approximately 39,000 customers across 150 countries.
- SDR provides the market leading platform within an underpenetrated market.
- There are around 850,000 potential clients in the market.
- Elston continues to hold because they believe SDR has a large opportunity to grow its client base.
- Additionally, there is potential for expanding revenue per client over the longer term.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who has invested in Siteminder Ltd (ASX:SDR)?
Fund managers including Endeavor Asset Management, Blackwattle Investment Partners, Yarra Capital Management, Elston Asset Management, LHC Capital, Lakehouse Capital and Seneca Financial Solutions have invested in Siteminder Ltd (ASX:SDR).
Why have investment managers invested in Siteminder Ltd (ASX:SDR)?
Fund managers are investing in SiteMinder Ltd (SDR) due to its strong market position in the hotel technology sector, which serves approximately 44,500 properties globally. With a low penetration rate of around 4% in a total addressable market exceeding 1 million properties, the company is poised for significant growth. SDR's innovative product suite, including advanced channel management and transaction-based services, positions it well to capitalize on the increasing demand for streamlined hotel management solutions. Fund managers appreciate SiteMinder's recurring revenue model, which provides stability even in fluctuating travel markets. The company has demonstrated consistent revenue growth, improved unit economics, and a robust pipeline of new products aimed at enhancing profitability. With expectations of a compound annual growth rate (CAGR) exceeding 20% through FY29 and a strategic focus on larger hotel clients, SiteMinder represents a compelling investment opportunity for long-term capital appreciation.
What happened to Siteminder Ltd (ASX:SDR)?
In recent months, fund managers have expressed positive sentiments about Siteminder Ltd (SDR), a travel technology company specializing in hotel inventory and booking management. In July 2025, Blackwattle Investment Partners noted a 17.6% share price increase to approximately $5.21, driven by rebounding travel activity and the announcement of an investor day to discuss their Smart Platform strategy. By August, Seneca Financial Solutions highlighted a 33% rise in share price to around $6.89, following impressive FY25 results showing a 27% increase in Annual Recurring Revenue (ARR) and significant operating leverage, with EBITDA soaring to $14.3 million. By September, the share price reached about $6.98, reflecting confidence in the company's growth potential and a turnaround in cash flow.