Pop-up hotels operator WhyHotel has secured over USD 20 million in a Series B funding round, to fuel its expansion in new markets in the US.
WhyHotel is an alternative lodging service that operates pop-up hotels in newly built, luxury apartment buildings. With multiple new cities set to open in 2020, the company intends to use these funds to fuel its national expansion and to offer additional products and services.
WhyHotel is also preparing for a number of additional hires to continue to invest in the infrastructure required for the real estate sales, marketing, revenue, and technology teams. Furthermore, the company plans to use the funds to continue to ramp up Hospitality Living, the real estate development arm of the company, with the goal to deliver the first development in 2022.
“How people use space is evolving at a much faster pace than the 3-5 years it takes to deliver a high-rise building,” said Jason Fudin, CEO and co-founder of WhyHotel. “To address this, we are accelerating innovative real estate offerings for consumers and developers alike.”
“The engine of this inevitable future”
“However, unlike major operators that have been hobbled by delivering products that mismatch long-term lease obligation and short-term consumer contracts, our products are designed with an understanding of real estate cycles in mind and the goal of building a sustainable, profitable business. With hospitality and multifamily products continuing to converge, WhyHotel is poised to be the engine of this inevitable future.”
WhyHotel’s total funding now stands at over USD 35m since its inception in 2017. The company plans to continue to accelerate the launch of pop-ups across the US in 2020 and lay the groundwork for building its own high-rise developments that bring the concept into buildings on a permanent basis via Hospitality Living.