Recently it was announced that WhyHotel raised $20 million. The company provides a hybrid residential / hospitality service whereby it rents out available rooms for short term stays in luxury apartment complexes.
A slight twist to the Airbnb model, WhyHotel can work with the building owners and apartment managers to determine which units in particular and for how long they will rent out. It’s been called a pop-up hotel concept and currently the company offers properties in Seattle, Houston, Arlington and Tysons Corner, Virginia.
CEO Jason Fudin says, ““How people use space is evolving at a much faster pace than the three to five years it takes to deliver a high-rise building,” further adding, “To address this, we are accelerating innovative real estate offerings for consumers and developers alike.”
WhyHotel is not the only one to innovate in lodging and raise significant sums. San Francisco-based Sonder raised $210 million at a valuation of more than $1 billion for vacation apartments that come with hotel-level service. On the east coast in New York, Domio raised $12 million for a very similar offering. Interestingly, Airbnb is also experimenting. They led a $16 million investment in Lyric, which develops creative suites for professionals.
Harbert Growth Partners led the $20 million series B round and was joined by Highland Capital Partners, Camber Creek, Working Lab Capital, Geolo Capital, Revolution’s Rise of the Rest Seed Fund, and former Bain Capital Partners MD Mark Nunnelly.
